PETALING JAYA (May 27): JAKS Resources Bhd began its financial year ending Dec 31, 2026 (FY2026) with improved earnings, supported mainly by stronger contributions from its Vietnam power joint venture, which helped cushion ongoing weakness in its construction and property investment businesses.
In its Bursa Malaysia filing, the group reported that its construction and property-related divisions remained loss-making during the first quarter ended March 31, 2026 (1QFY2026), although operational performance showed mixed trends.
The construction division recorded a lower loss before tax of RM9.43 million compared with RM10.18 million a year earlier. Revenue improved slightly to RM545,000 from RM515,000 previously, mainly due to reduced operating costs during the quarter.
Meanwhile, the property investment division — which manages Evolve Mall in Ara Damansara and Pacific Tower Business Hub in Petaling Jaya — posted revenue of RM3.32 million versus RM3.53 million in the corresponding quarter last year. Loss before tax widened slightly to RM9.83 million from RM9.44 million, affected by softer rental income and higher utility expenses.
The group’s power-energy segment continued to strengthen, with revenue increasing to RM5.44 million from RM4.75 million previously. The segment also turned profitable, registering a profit before tax of RM885,000 compared with a marginal loss before tax of RM25,000 in 1QFY2025, driven by higher energy-related income.
At the same time, the investment holding and others division — which mainly reflects JAKS’ share of profit from its Vietnam coal-fired power plant joint venture — remained the group’s key earnings contributor. The segment posted a profit before tax of RM30.61 million, slightly higher than RM30.26 million recorded a year earlier.
Overall, JAKS’ group revenue rose 6% year-on-year to RM9.31 million from RM8.80 million. Profit before tax climbed 15% to RM12.24 million from RM10.62 million, supported by lower operating expenses and a higher share of profit from the Vietnam power JV, which increased to RM33.20 million from RM32.53 million.
Net profit improved to RM12.11 million compared with RM10.45 million in 1QFY2025, while profit attributable to shareholders rose to RM16.95 million from RM15.07 million. Basic earnings per share increased to 0.65 sen from 0.58 sen previously.
As at March 31, 2026, the group’s total assets stood at RM2.33 billion, largely unchanged from RM2.32 billion at the end of December 2025. Shareholders’ funds strengthened to RM1.59 billion from RM1.57 billion, lifting net assets per share to 61 sen from 60 sen. Total secured borrowings, including bank overdrafts, amounted to RM443.42 million.
Looking ahead, JAKS said it remains cautious about the softer construction market and competitive retail property environment. However, the group expects its power and renewable energy operations to become a stronger growth driver moving forward.
Through its 51%-owned subsidiaries, JAKS CP Solar One Sdn Bhd and JAKS CP Solar Two Sdn Bhd, the company is currently developing two 99.99MW large-scale solar (LSS) plants in Setiu, Terengganu. The projects are expected to contribute positively to revenue and earnings over the medium term.
The group is also exploring additional renewable energy opportunities through greenfield developments and strategic acquisitions.
Meanwhile, its construction division will continue focusing on selective tenders and niche projects that can deliver sustainable margins, while the property investment segment aims to improve occupancy rates and rental yields at Evolve Mall and Pacific Tower to stabilise recurring income streams.
No dividend was declared for the quarter.
What Investors Can Learn from JAKS’ 1QFY2026 Results
Several key takeaways emerged from JAKS’ latest quarterly performance.
First, the Vietnam power plant joint venture remains the company’s primary earnings pillar. Despite weak performances from its domestic construction and property divisions, recurring profits from the power JV enabled the group to sustain profitability and improve overall earnings.
Second, JAKS is gradually repositioning itself towards the renewable energy sector. The development of two large-scale solar projects in Terengganu signals the group’s longer-term strategy to diversify beyond traditional construction and property activities into more stable and recurring energy income.
Third, the construction and retail property divisions continue to face structural challenges. Although construction losses narrowed, revenue contribution remained minimal, while softer mall income and rising operational costs continue to pressure profitability in the property investment segment.
Lastly, the company’s balance sheet remains relatively stable, with shareholders’ equity improving slightly and assets holding steady. However, investors may continue monitoring execution risks surrounding the solar projects, future renewable energy expansion plans, and the group’s ability to improve occupancy and rental performance at its investment properties.
Yao Mu Realty, based in Kuala Lumpur, Malaysia, specializes in industrial real estate for factories and land, delivering professional and efficient solutions.
Posted by Yao Mu Realty Sdn Bhd on 27 May 26
Malaysia