JAKS is Jumping Up Again

As I see it, the so called bad days are just about over for JAKS.

The sad-bad years where it was cheated out of the profitable re-piping project in Selangor may just be turning good in 2010 and beyond. The court case for arbitration is still on and JAKS may see some retribution here soon as well.

Apart from winning the UTAR Section 17 campus renovation project and a portion of the Pahang-Selangor Water Transfer Project, it has got another project.

Its wholly-owned subsidiary, JAKS Sdn Bhd (JSB) has now secured a RM201 million construction contract for the earthworks, retaining wall, piling works and sub-structure works for the proposed commercial development of Phase 1-5 Commercial Block of 15 storey and 4 storey basement at Lot 59215 (PM55) and 59216 (PN8025), Jalan PJU 1A/4, Ara Damansara, Petaling Jaya, Selangor Darul Ehsan (“Contract”) from MNH Global Assets Management Sdn Bhd.

The Contract is expected to be completed by March 2012 and is expected to improve the future earnings of the JAKS Group.

None of the Directors or Major Shareholders of JAKS and persons connected with them has any interest, direct or indirect, in the Contract save that MNH Global Assets Management Sdn Bhd is wholly owned by Island Circle Development (M) Sdn Bhd (ICDSB), a major shareholder of JAKS Island Circle Sdn Bhd (“JIC”), which is 51%-owned by JSB and 49%-owned by ICDSB.

For now, JAKS performance has improved. The latest set of quarterly results for 2010 is absolutely pleasing to the eyes.

Year on year up to 31 October 2010, the comparisons of the figures  are exponential.

For full year accounting, profit before tax for current 2010 is RM4.439 million as compared to a loss in 2001 of RM2.430 million. Profit after tax amounts to RM2.38 million as compared to a loss of RM6.386 million in 2009. The basic earning has improved to 0.52 sen as compared to a loss of 1.54 sen last year.

Compared to the equivalent preceding quarter in 2009, PBT is now RM85.742 million as compared to RM62,313 million in 2009. Profit is now at RM2.530 million as compared to a loss of RM580,000 last year. Basic earning per unit has moved up to 27 sen as compared to negative 71 sen in 2009.

So,looks like 2011 may become one great year for JAKS if all the pieces fell into place.

So,watch the counter.