I will just summarised the current quarter 2 results, as I have covered most of the points in 3 parts written earlier.
Results are in line with my expectation. The gains reported are made due to the fair value changes in the shares they bought which I have covered in my earlier analysis. I mentioned I forecasted around RM1.7mil gains, but the actual results is around RM2mil. This is also due to the fact I mentioned there is a portion of shares they bought I don't know what they have bought into so that portion netted them an extra RM300k. On the operation side, the results is breakeven, due to the fact that 1 month period they could not operate due to MCO. I've checked and compare their performance with Tex Cycle, so their performance in operations can consider decent. In this business JAG is in, you need to be engaged in your operations in terms of fully operational, so the shutdown of 1 month period did impact them. The positive side is that they manage to breakeven.
Metal prices continue to provide them with opportunities to have a higher profit. If you have read my analysis previously, you could actually forecast the coming Q3 results. I have expected a RM1mil profit from operations in Q2 excluding the fair value gain, however based on the results reported I believe it is a bit difficult when your business could not operate for 1 month period. Moving forward, Q3 performance should be better due to the fact many businesses shut down and have their waste uncollected and this should pick up in Q3 for backlog work and should continue to contribute positively to JAG.
Based on the financial performance, the Company is already turning around being in 3 consecutive quarter making profits.
For the venture into solar, based on my own thoughts I don't price in the chance that they would win the tender, but if they did it will be a bonus.
Please do not expect limit up for whatever due to positive results due to the good results be it in this stock or others. Hope and promises are great, but my advise is to stick to reality. The consolidation have taken me by surprise by the inadequate disclosure made based on the PDF shown in the announcement, I believe Bursa need to do more work to ensure everyone understands it well. Having said that, the only stock I'm in the red based on current holding is this Company. Anyhow before buying into any stock please understand the fundamentals well, because if not you will be shaken quite easily. This is because if you don't know what you're buying into, you won't know what your acion plan would be. For now, better hold on to strong fundamental stocks with low valuation. So forecasted EPS for 1 year is around 4 sen so I would take a conservative PE of 10, thus should be around 40 sens. If you can take a higher risk, then by all means put a higher PE. If i'm not wrong Tex Cycle's PE is around 20 if not mistaken. Overall the market is not that optimistic, so please by all means be a little more prudent in how you manage your investments.
I will just comment on certain companies quarter moving forward based on my articles, due to the fact some of my articles is being copy+paste by some FA gurus in the market. I would not be willing to share my work which is to educate people and sharing some of my tehniques due to this. A side note is that I'm working on 2 of my business ventures, in which one of them related to investment in shares and the website should be up by year end. You can check my profile by year end for the link to the website once it's up. Current period would be a little busy for those works so I shall only keep articles short. For the supporters, thank you for all your support.
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