JAG Bhd , one of Malaysia’s leading total waste management companies by market share, continued to chart a positive 2017 with strong half year financial results.
The Group yesterday announced a profit after tax (PAT) of RM4.97 million for the first six months of 2017 from the loss after tax of RM1.62 million recorded in the corresponding period last year. Revenue was also higher at RM64.64 million compared with the RM42.84 million recorded last year.
For the second quarter ended 30 June 2017, JAG achieved a PAT of RM2.52 million compared with RM283,000 registered in the corresponding second quarter last year.
Revenue for the financial quarter under review was RM36.69 million compared with RM22.03 million recorded in the corresponding second quarter last year. The Group’s improved performance was mainly attributable to higher sales volume of recovered metals and improved commodity prices, specifically for copper, tin, aluminum and iron.
Following the strong results, the Group has also announced a first interim dividend of 0.001 sen per ordinary share (single tier) amounting to RM1,266,040.89 for the financial year ending 31 December 2017 and payable on 6 October 2017.
According to Dauk Ng Meow Giak, an Executive Director of JAG, “We are pleased with our results and we are confident this positive traction will continue for the remaining of 2017. Based on our internal assessment, we have secured 50% more electronic waste from new and current suppliers this year. We are therefore optimistic of achieving a higher revenue from our total waste management division for the financial year ending 31 December 2017 compared with last year. We are also looking forward to the launch of our maiden property development project later this year, which will become an icon of Taman Sentosa once completed.”
“Progress for our first property development project is on track. We are awaiting the building plan approvals by the relevant authorities. Up next will be the soft launch which we are targeting at the end of 2017. Simultaneously, we are also working on setting up our sales gallery which will be ready by the first quarter of 2018.”
The said property development project will be a three component development comprising shop-offices, office suites and residential apartments. The total gross development value of the development is expected to range from RM155 million to RM170 million. This will translate into a gross development profit of between RM20 million to RM35 million.
“We expect the long-term prospects of our waste management business to remain bright. In addition, we believe our diversification into property development and property investment will enable the Group to expand our sources of revenue while at the same time, mitigate our exposure to fluctuations in commodity prices,” Ng concluded.