KUALA LUMPUR: JAKS Resources Bhd posted a 60.4% jump in its first quarter net profit to RM28.62 million, from RM17.84 million a year ago, mainly on higher contribution from its Vietnam engineering, procurement and construction (EPC) works.

Revenue for the quarter ended March 31, 2019 grew 41.7% to RM297.80 million, from RM210.20 million previously, the group said in a stock exchange filing.

The Vietnam EPC construction work contributed revenue of RM255.8 million, compared with RM93 million previously.

The higher progress billings and profit recognised there helped lift profit before tax for its construction division to RM58.3 million, from RM27.1 million previously.

The group’s property development and investment division, meanwhile, recorded a slightly lower loss before tax of RM14.5 million, compared with a loss before tax of RM14.8 million a year ago.

JAKS said the group expects the current financial year to continue to be challenging.

It expects the local construction division’s outlook to remain challenging, but said the overall performance of the division should perform satisfactorily in 2019 with the contribution from the Vietnam EPC contract.

“The performance of the property development and investment division will remain challenging due to the key issues of price affordability and the overhang in the property market.

Shares in JAKS rose four sen or 5.5% yesterday to 77 sen, valuing the group at RM450.18 million.