JAG eyes 25%-30% revenue growth in FY17

SHAH ALAM: JAG Bhd, one of Malaysia's leading total waste management companies, expects to achieve a 25%-30% rise in revenue for its financial year ending Dec 31, 2017 (FY17), driven by more contract wins from existing and new suppliers and increased efficiency in its processing facility.  

Executive director Datin Stacey Tan Siew Ching said the company registered a revenue of RM82.91 million in FY16 and aimed to hit RM100 million by the year-end.

"The uptrend in commodity prices, particularly copper, and the strengthening of the US dollar, are expected to boost the group's performance in FY17," she told reporters after the company's AGM in Shah Alam on Wednesday.

"In 2016, through efforts in engaging new and existing suppliers, we had successfully secured more contracts than the year before," she said.

"Furthermore, we will be able to leverage the strengthening of copper prices, which makes up more than 54% of what we extract and refine," she said.

Tan said prices of precious metals such as gold and silver were also increasing steadily, which would benefit the group, and in a nutshell the company was optimistic of performing strongly this year.

In another development, its property unit, JAG Land Sdn Bhd's maiden project on a 1.34ha freehold land in Kg Jawa, Klang, is expected to be introduced in the third quarter of this year.

"Our first project is on track and we have obtained all land approvals. The company has submitted the building plan and up next will be the soft launch which we are targeting in the third quarter or the beginning of the fourth quarter.

"Simultaneously, we are also working on setting up our sales gallery which will be ready by the fourth quarter of this year," said Tan.

On long-term prospects, she said the group's waste management business remained bright and that it was targeting a 50:50 ratio contribution from waste management and property development in less than five years, to mitigate its exposure to fluctuations in commodity prices.

JAG's core business is in e-waste and industrial waste processing, whereby it extracts and refines ferrous, non-ferrous and precious metals.

The company, listed on ACE Market of Bursa Malaysia, is also involved in computer software development, maintenance and support services, providing marketing support, system integration and network solutions, as well as 24-hour coin-operated laundry operations in Malaysia. - Bernama