A NEW JAKS BECKONSJAKS has been baptised by fire. It was betrayed by a well connected political Judas.
It was a deep wound, close to JAKs's heart. Now, it will no longer depend on political patronage alone to get projects in Selangor after the PUAS-SPLASH privatisation fiasco. The potential 30 years contract supplying pipes to water-works in Selangor was largely ignored by Puncak Niaga that JAKS had to bring a legal case against SYABAS, Punca Niaga and the Government of Selangor. The case is still pending in the courts.
That was the wake-up call. From that singular incident of bad faith, JAKS smartened up and started to rely on itself. The days of Dato'Jamian Mohammed who lent his J to the word JAKS is now gone when he resigned. The founder, Ang Ken Seng (AKS) though, is still represented in JAKS by his two children. With new Chairman Zulkipli Abdul at the helm, a new chapter has opened up for JAKS.
To avoid the vagaries of the steel industry and the thin trading margins, JAKS has moved on. On its own it has made forays into Malacca and Kedah. In Kedah, it has nailed down a joint venture with Bina Darulaman Berhad to secure pipes and fittings for various water-works in the state. If the joint-venture materialises,a consortium company will be set up to supply pipes and fittings to Kedah for 10 years and the state will have the option to secure supplies from the consortium for another 10 year.
As not to be reliant only on pipes for the water industry alone, JAKS bought over Empire Deluxe. With this deft move, it opened itself to supplying the world's oil and gas industry. Empire Deluxe has a manufacturing plant that produces carbon steel butt-welded pipe fittings used in construction engineering and in the oil and gas related industry. All the output are fully exported to North America and Canada.
The additional revenue from Empire Deluxe will impact positively on JAK's bottom line beginning April 2007.
JAKS's financial profile is getting better. The results for the last six months from November 2006 to April 2007 was impressive. From a loss of RM4 million for the same period in 2006, JAKS made a net profit of RM5.1 million. Turnover increased 17% from RM62 million to RM70.7 million attributed to better market sentiments. This portends well for JAKS for the next 6 months.
As most of the water projects will be tendered out during the remaining months of 2007, a majority of pipe manufacturers will stand a good chance to get some parcels of them. Pipe manufacturers like JAKS will also benefit from the new properties to be developed in most of the growth areas like IDR, NCER and the like.
As the market is currently very weak, it is the best time to accumulate JAK shares. Best to buy below 80 sen.
Heartsong
That was the wake-up call. From that singular incident of bad faith, JAKS smartened up and started to rely on itself. The days of Dato'Jamian Mohammed who lent his J to the word JAKS is now gone when he resigned. The founder, Ang Ken Seng (AKS) though, is still represented in JAKS by his two children. With new Chairman Zulkipli Abdul at the helm, a new chapter has opened up for JAKS.
To avoid the vagaries of the steel industry and the thin trading margins, JAKS has moved on. On its own it has made forays into Malacca and Kedah. In Kedah, it has nailed down a joint venture with Bina Darulaman Berhad to secure pipes and fittings for various water-works in the state. If the joint-venture materialises,a consortium company will be set up to supply pipes and fittings to Kedah for 10 years and the state will have the option to secure supplies from the consortium for another 10 year.
As not to be reliant only on pipes for the water industry alone, JAKS bought over Empire Deluxe. With this deft move, it opened itself to supplying the world's oil and gas industry. Empire Deluxe has a manufacturing plant that produces carbon steel butt-welded pipe fittings used in construction engineering and in the oil and gas related industry. All the output are fully exported to North America and Canada.
The additional revenue from Empire Deluxe will impact positively on JAK's bottom line beginning April 2007.
JAKS's financial profile is getting better. The results for the last six months from November 2006 to April 2007 was impressive. From a loss of RM4 million for the same period in 2006, JAKS made a net profit of RM5.1 million. Turnover increased 17% from RM62 million to RM70.7 million attributed to better market sentiments. This portends well for JAKS for the next 6 months.
As most of the water projects will be tendered out during the remaining months of 2007, a majority of pipe manufacturers will stand a good chance to get some parcels of them. Pipe manufacturers like JAKS will also benefit from the new properties to be developed in most of the growth areas like IDR, NCER and the like.
As the market is currently very weak, it is the best time to accumulate JAK shares. Best to buy below 80 sen.
Heartsong
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