This article first appeared in The Edge Financial Daily on June 15, 2017 - June 21, 2017

KUALA LUMPUR: Total waste management company JAG Bhd, which recently made its foray into property development, expects its revenue to grow up to 30% this current financial year ending Dec 31, 2017 (FY17).

Chairman and executive director Datin Stacey Tan Siew Ching said the improvement in revenue will be driven by a higher number of contracts secured by its e-waste management division.

“[Year to date,] we have secured 40% more contracts [over the same period last year] and we are expecting 25% to 30% growth in revenue this year.

“We hope to register at least RM100 million in revenue for FY17,” Tan told reporters after the group’s annual and extraordinary general meetings yesterday.

She said the strengthening copper prices will also contribute to the group’s performance this year, as copper accounts for 54% of its extraction and refining activities.

The group returned to the black with a net profit of RM2 million in FY16 compared to a net loss of RM19.79 million in FY15, despite a marginal 2.2% drop in revenue to RM82.91 million from RM84.79 million.

Meanwhile, Tan said JAG is on track to launch its maiden property development in Kampung Jawa, Klang, in the third quarter of 2017. It consists of retail outlets, office towers and apartments. With a total gross development value of RM155 million to RM170 million, it will be developed over three phases and is set to be completed within four years.

She said the mixed development comprising retail, residential and office components is expected to begin contributing to the group from FY19.

Tan added that the group is aiming to launch up to three projects within five years, with JAG on the lookout for opportunities to expand its land bank.

“We could purely buy a new piece of land, but we are also looking at working with other parties through joint ventures. We should be making some announcements before year end,” she said.

In January, JAG had diversified into the property development segment to reduce its reliance on the electronic waste (e-waste) business, which is subject to external factors such as currency movement.

“The move to diversify into the property segment is a long-term move. While there have been talks of a soft market, we saw it as a good time to enter the market.

“We will grow the property side and target to eventually have equal revenue contribution from the e-waste and property development divisions, which will be the main growth drivers for the group going forward,” said Tan.