25/05/2026

BIZ & FINANCE MONDAY | MAY 25, 2026

15

JAG turns around in Q1 with after-tax profit of RM5.37m

Sorento Capital’s nine-month earnings jump to RM22.5m KLANG: Bathroom and kitchen sanitary ware solution provider Sorento Capital Bhd recorded revenue of RM134.7 million in its nine months (9M’26) for the period ended March 31, 2026, broadly in line with RM135.9 million recorded in the corresponding period of the previous financial year (9M’25). The marginal softening was primarily attributable to lower contributions from sales to dealers, partially offset by higher contributions from project-based sales. Dealer and project-based channels remain the group’s primary revenue streams, contributing RM84.7 million (62.9%) and RM49.1 million (36.4%), respectively. Collectively, these segments accounted for 99.3% of the group’s total revenue for 9M’26, with the balance derived from online sales. Notwithstanding the marginally softer revenue, Sorento Capital delivered stronger earnings performance for 9M’26, with profit after tax (PAT) rising 23% to RM22.5 million, from RM18.3 million in 9M’25. On quarterly basis, the group registered revenue of RM43.4 million in Q3’26, compared to RM41.1 million recorded in Q3’25, primarily attributable to higher contribution from project based sales. PAT stood at RM5.8 million, compared to RM6.3 million in Q3’25, mainly due to changes in sales mix with higher contribution from lower-margin products and higher operating expenses incurred during the quarter. In line with the group recently adopted dividend policy, the board has approved an interim single-tier dividend of 0.25 sen per share for the financial year ending June 30, 2026 (FY26), with an entitlement date of June 12, 2026 and to be paid on June 26, 2026. Together with the previous dividends declared for FY26, this brings the total dividends declared for FY26 amount to 1.25 sen per share to-date. Managing director Loo Chai Lai said, “We are pleased to deliver a stronger year to-date earnings performance despite the challenging operating environment. While rising costs remain a persistent headwind across the industry, our results reflect the team’s continued focus on cost discipline and operational efficiency.” As at March 31, 2026, Sorento Capital maintained a net cash position, supported by cash and cash equivalents of RM50.6 million, which significantly exceeding total borrowings of RM3.3 million. warrants NIKKEI-HW and NIKKEI-HX were in the spotlight as investors traded 3 million and 1.9 million, respectively. Meanwhile, call warrants NIKKEI-CW also saw some trading interest with 1.7 million units exchanging hands. To view the full list of structured warrants available on Bursa Malaysia, kindly visit malaysiawarrants.com.my . Provided for Malaysian residents information only. This commentary has not been reviewed by the Securities Commission Malaysia. It is not an offer or recommendation to trade and is not research material. Past performance is not indicative of future performance. You should make your own assessment and seek professional advice. The warrants will not be offered to any US persons.

o Total waste management segment contributes 98% of revenue in first quarter KUALA LUMPUR: JAG Bhd, a total waste management and resource recovery specialist, posted strong earnings for its first quarter ended March 31, 2026 (Q1’26), underpinned by higher contribution from its core Total Waste Management (TWM) business, firmer precious metal selling prices and improved margin efficiency. For Q1’26, JAG recorded revenue of RM64.58 million, representing a 39% increase from RM46.47 million in the corresponding quarter of the preceding financial year. The company returned to profitability with profit after tax (PAT) of RM5.37 million, compared to a loss after tax of RM6.43 million in Q1’25. Basic earnings per share stood at 0.77 sen, compared to a loss per share of 0.88 sen previously. In a statement, JAG said the improved performance was principally driven by the company’s TWM business, which remains its core earnings engine and accounted for 97.7% of total revenue during the quarter. It added that the segment revenue from manufacturing and trading activities increased 41.5% year-on-year to RM63.09 million from RM44.6 million, mainly attributable to higher sales contribution from high value precious metals recovered and sold during the quarter. The segment also benefited from firmer market prices of key precious metals, particularly gold and silver, which supported stronger selling prices and contributed positively to profit margins. On a quarter-on-quarter basis, JAG

Group continues to strengthen its resource recovery ecosystem through higher-value material processing and operational efficiency improvements. - UNSPLASH PIX

demonstrated a significant uplift in profitability despite a 7.2% moderation in revenue from RM69.61 million in Q4’25 to RM64.58 million in Q1’26. PAT surged more than fivefold to RM5.37 million from RM1.07 million, reflecting stronger margin conversion and improved operating leverage within the group’s core business. Executive director Datuk Ng Meow Giak said, “Q1’26 marks an important earnings inflection point for JAG. The return to profitability reflects the resilience of our core Total Waste Management platform, our ability to monetise higher-value recovered materials, and the stronger contribution from favourable precious metal pricing dynamics.” The company also recorded notable improvements across its non-core segments. The lifestyle and services segment narrowed its loss significantly to RM0.05 million from RM0.49 million in Q1’25, mainly following the disposal of the gelato business in FY25 and continued cost

control measures. Meanwhile, the property investment and development segment recorded revenue growth of 55.2% to RM0.59 million, driven by improved tenancy rates at Wisma JAG. In line with the improved earnings performance, JAG declared a first interim single tier dividend of RM0.002 per ordinary share, amounting to approximately RM1.4 million for the financial year ending Dec 31, 2026. The dividend was declared on May 22, 2026 and is payable on June 25, 2026. Ng added, “Our dividend declaration reflects the board’s confidence in the company’s improving earnings trajectory, while maintaining a prudent approach to capital allocation. In line with this, the board has formalised a dividend policy framework to support a more structured and sustainable approach towards future shareholder returns, with the group targeting a dividend payout of up to 30% of profit after tax. “The rapid growth of Proton e.MAS in Malaysia is driven not only by the strength of our product lineup, but also by the confidence customers have in our sales and aftersales ecosystem,”said Pro-Net CEO Zhang Qiang, adding that they target to continue expanding their outlet network. By investing aggressively in both physical infrastructure and customer-facing enhancements, Pro-Net aims to strengthen Proton e.MAS’ position as a leading force in Malaysia’s rapidly evolving NEV landscape.

Proton e.MAS sales soar 329% in first four months of 2026 SUBANG JAYA: Pro-Net, the distribution and sales arm for Proton New Energy Vehicles (NEV), is accelerating its nationwide expansion after recording explosive growth for Proton e.MAS in 2026, while simultaneously introducing a new premium retail identity designed to elevate the customer ownership experience. nationwide. To support its rapid growth trajectory, Pro-Net has expanded its dealer footprint with the opening of two new Proton e.MAS outlets this month at Jalan Sultan Ismail in Kuala Lumpur and another second at shopping mall-based outlet at Pavilion Bukit Jalil.

Driven by strong demand for its growing range of electric and plug-in hybrid vehicles, Proton e.MAS sales surged by 329.5% in the first four months of 2026, with 11,617 units delivered

Currently, Proton e.MAS operates 53 sales outlets nationwide. The network supports some 1,600 employees across sales, servicing, and administration functions.

Trading activity shrinks, HSI futures extend weekly losses

On Tuesday, it staged a modest rebound (+0.4%) before giving back all the gains on Wednesday (-0.5%) and Thursday (-0.7%) as the risk appetite was dampened by rising US Treasury yields and continued uncertainty on the timing of Federal Reserve rate cuts ( CNBC, May 19 ). Additionally, lingering geopolitical tensions and volatile oil prices kept investors on the sidelines, offsetting some optimism from Hong Kong’s improving initial public offering (IPO) pipeline and encouraging recovery signals out of mainland China. Both HSI call and put warrants saw active trading last week. Call warrant HSI-CWQT issued by Macquarie was the most actively traded HSI warrant in Bursa Malaysia with 250.6 million units exchanging hands. Meanwhile, call warrants HSI-CWQH and HSI CWOX stood at 2nd and 3rd spot

Top HSI warrants by volume traded Warrant Volume Issuer Exercise

WARRANTS WATCH

TURNOVER in structured warrants for the week ended May 22 came in at RM614.9 million, which represented 24.2% decrease week-on-week (w-o w). The decrease in trading activities was mainly attributed by lesser interest in warrants over the Hang Seng Index (HSI) and Malaysia stocks which have fallen 37.4% and 14.4%, respectively. The HSI futures dropped almost 1% last week, closing 3 out of 5 trading days in the red. The futures started the week on a bearish tone, extending losses from Friday last week. The move came following the weekend where US President Donald Trump concluded two days of meetings in Beijing with Chinese President Xi Jinping ( CNBC, May 17 ).

Expiry date

name

(mil) 250.6 235.7 163.5 117.7

level

HSI-CWQT HSI-CWQH HSI-PWRH HSI-CWOX HIS-PWPY

Macquarie Kenanga Kenanga Kenanga Kenanga

28,000.00 28,000.00 23,000.00 27,000.00 25,000.00

29 Jun 2026 29 Jun 2026 29 Jun 2026 28 May 2026 28 May 2026

69.6

among HSI call warrants with 235.7 million and 117.7 million units exchanging hands, respectively. Investors also traded put warrants HSI-PWRH and HSI-PWPY. Investors should note that some of these warrants will be expiring on May 28 with their last trading date on May 25. Warrants approaching expiry will experience an accelerated rate of time decay, meaning its value will

decline at a faster rate than warrants with a longer time to expiry, even if the underlying remains unchanged. Therefore, warrant holders are encouraged to review their warrant portfolios and plan their trading strategies accordingly. Trading activity for warrants over Nikkei-225 Index (NIKKEI) also gained some traction last week as the Japanese major index gained 3.1% w-o-w. Put