JS Solar Holding Bhd endured a weak start to FY27 as its first-quarter profit after tax (PAT) plunged 90.8% to RM0.19 million from RM2.07 million a year earlier, despite revenue rising 26.2% to RM30.27 million.
The sharp earnings decline was mainly due to higher administrative expenses arising from unrealised foreign exchange losses, increased staff costs and depreciation of property, plant and equipment.
Revenue growth, on the other hand, was driven by the contracting services segment, which contributed RM21 million, sharply higher than RM60,000 a year earlier, supported by stronger work progress and a higher value of certified works.
The improvement was partly offset by weaker contributions from its engineering, procurement, construction and commissioning (EPCC) and operations and maintenance segments, with EPCC services contributing RM9.2 million during the quarter.
Managing Director Johnson Chai Jeun Sian said profitability was also affected by costs associated with improvement works for certain completed projects during their defects liability period following policy changes.
He said the group remains focused on controlling project execution costs and improving operational efficiency while pursuing new renewable energy contracts prudently.
As at June 30, JS Solar had substantially utilised its RM24.18 million IPO proceeds, with about RM20,000 remaining for business expansion and marketing activities.
The group remains cautiously optimistic for the rest of FY27, supported by opportunities from growing solar adoption and grid modernisation, while maintaining discipline in project bidding and cost management.
