SHAH ALAM: JAG Bhd, a leading total waste management company, recorded a loss after tax of RM6.4 million for the first quarter (Q1) ended March 31, 2025 (FY25) compared with a profit after tax of RM3 million registered in the same period last year.
Revenue stood at RM46.5 million compared with RM52.7 million a year ago.
The contraction was primarily driven by a slowdown in demand from international clients, following uncertainty surrounding the US tariff policy announced in early April.
Amid the lack of clarity, customers took a more cautious approach to procurement, resulting in delayed orders during the period.
Nevertheless, the group views this as a temporary, one-off impact.
Market sentiment is already showing signs of stabilisation, with semiconductor clients resuming typical procurement patterns.
Operational fundamentals remain strong, and the Group expects performance to improve in the coming quarters as business activity normalises.
Executive director Datuk Ng Meow Giak said while external headwinds impacted Q1 FY25, the company remains confident in its ability to deliver a strong rebound.
“Management guidance for FY25 remains strong and intact, and we expect the remaining quarters of the year to return to profitability.
“The long-term outlook for the industries we serve, particularly semiconductors and electronics, remains robust.
“We are focused on building the operational resilience and business agility needed to capitalise on these opportunities fully,“ he said.
Ng said the company’s total waste management (TWM) segment continues to show strength and agility.
“We are broadening our revenue streams within TWM, including entry into the oil & gas space and tapping into specialised services such as the disposal of scheduled waste, an area that requires licensed
handling and technical expertise.
“In Q1 FY25, we recorded a 25% quarter-on-quarter increase in the processing of these materials, signalling serious growth potential in this space.
“This presents a valuable opportunity to strengthen our market position and long-term profitability further,” he said.
Ng said the global tariffs are beyond control, but what is within control is how JAG build and future-proof the business.
“That is why we are aggressively driving new opportunities in industrial waste recovery, securing strategic contracts, and exploring untapped markets. Commodity trends also buoy us.
“Gold and silver prices have been on an uptrend, and copper has remained stable. Coupled with our healthy inventory, which can support operations for the next six months, we are well-positioned to benefit from evolving market dynamics,” Ng said.
He said the TWM segment remains the group’s primary growth engine.
In addition to streamlining operations and refocusing on high-value activities, JAG is enhancing productivity through processing efficiencies, expansion of service scope, and diversification into industries with long-term potential.
“As we enter this next phase of growth, we are also taking steps to enhance shareholder value.
“Given the strong fundamentals of our core business and the growth trajectory ahead, we are in the process of formalising a dividend policy.
“This reflects our confidence in the group’s performance outlook and our commitment to delivering long-term value to our shareholders,” Ng said.
