JAG Bhd, a leading total waste management company, is bullish of the year ahead after marking its strongest financial performance since completion of its reverse take-over (RTO) of Infortech Alliance Bhd in 2014.
The group posted a net profit of RM14.01 mil for its 9M FY2021 ended Sept 30, 2021 which is a commendable two-fold increase from the RM6 mil achieved in the same period last year. These results were achieved on the back of a turnover of RM157.65 mil, a 37% jump from RM114.72 mil recorded a year ago.
For its 3Q FY2021, JAG achieved a net profit of RM4.59 mil compared with RM2.4 mil in the previous corresponding period. Revenue for the quarter was RM46.5 mil which is a slight dip from the RM47.91 mil recorded a year ago.
“External factors such as the stronger commodity prices and the higher procurement of E&E (electrical and electronics) materials contributed to our performance,” commented JAG’s executive director Datuk Ng Meow Giak.
“Internally, we also successfully secured 17% more contracts than a year ago which further boosted our bottom line.”
With the recovery of the business landscape under the National Recovery Programme, Ng expects optimism of the group’s prospects heading into 2022 on the back of the booming E&E industry.
“While the pandemic caused tremendous disruptions in manufacturing operations including E&E, it also resulted in significantly higher demand for specific E&E products which in turn spurred the overall growth of semiconductors,” he justified.
According to reports, E&E accounts for 40% of Malaysian exports. In the first eight months of 2021, Malaysia’s total trade in E&E products amounted to RM477 bil. Under the 12th Malaysia Plan (12MP), the sector is projected to contribute RM120 bil to Malaysia’s gross domestic product (GDP) by 2025.
“The 12MP will focus on high potential industries like E&E to drive the economy forward and create economic opportunities,” projected Ng.
“JAG is poised to benefit from measures taken to grow this industry in the coming quarters. At the same time, we are also committed to continuously improve our earnings potential by investing in capacity building initiatives where necessary.”
Cognisant of the external economic conditions which can have an impact on the group’s earnings, JAG will continue to undertake measures to ensure it is able to deliver shareholder value by building on the company’s strengths and pursuing opportunities for organic growth, added Ng.
At the close of yesterday’s (Nov 17) trading, JAG was down 2 sen or 5.06% to 37.5 sen with 36.11 million shares traded, thus valuing the company at RM238 mil. – Nov 18, 2021
