JAKS will focus on energy, infrastructure construction sectors, says CEO

JAKS Resources Bhd will be focusing on two main sectors, primarily the power and energy sector, as well as the infrastructure and construction sector, according to JAKS CEO Andy Ang.

“The focus is on two main sectors, primarily power and energy, and infrastructure construction, which is our forte and we have a track record in water infrastructure, roads, and bridges,” said Ang to FocusM.

He shared that JAKS still has a few projects ongoing, such as a sewage pipeline and a wastewater treatment plant. Ang also shared that the group is also tendering for government projects of between RM1 bil to RM1.5 bil in total project value.

“We are looking for good projects in Malaysia and Vietnam, as we have established a strong foundation via close relationships with the various authorities and businesses throughout the years. This brings several benefits and advantages in securing future concessions on projects that may be awarded.”

“Unfortunately, nobody can travel, but we feel it is long past due for us to return to Vietnam and explore the opportunities there,” said Ang.

He also shared that he is looking forward to 2021, when the earnings from the group’s Hai Duong power plant will come in, which will serve as stable recurring income of about RM720 mil a year as the group looks for more projects that are viable.

Ang noted that the group is looking to grow its power division as well, with renewable energy being a particular avenue of focus for the group.

“We are looking to grow the power division, particularly in renewable energy. We have also tendered for the Large Scale Solar project for 50MW.”

“If this proves successful, it will also be another avenue of stable earnings, as the trend seems to be moving towards renewable energy,” said Ang.

Still, Ang noted that the group is still actively looking for opportunities to acquire existing water infrastructure, sewage treatment plants, and other infrastructure-related projects in Vietnam and Malaysia, due to the projects being able to provide immediate and sustainable earnings to the group.

At the end of the morning’s trading, JAKS’ shares were last done at 82 sen, down 5.5 sen, with 19.4 million shares traded. – Sep 10, 2020

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