KUALA LUMPUR (Sept 15): Water infrastructure firm JAKS Resources Bhd is anticipating more contracts from the multi-billion Langat 2 water treatment plant project.

This came after the long-delayed development of the Langat 2 that was concluded last week, following the Selangor and Federal governments inked the final four agreements.

JAKS Resources's general manager for corporate strategy, Steven Ang, said the company is still waiting the government to finalise and conclude the project, as to how it is going to move forward.

"Once they conclude the deal, we have confidence to clinch more packages from the project," Ang told pressmen, after the company's extraordinary general meeting (EGM) today.

However, he said it is still pending for the final process carried out by the government.

According to Ang, the company's subsidiary, JAKS Sdn Bhd, had bagged a contract last year, for the supply and installation of pipes for the Langat 2 water treatment plant, valued at RM55.3 milion.

As at April this year, the Selangor state government has issued seven development orders (DOs) for the construction of the RM3.6 billion Langat 2 water treatment plan.

Langat 2 is part of the Raw Water Transfer Project to treat 1.89 billion litres of raw water supplied to Selangor, Kuala Lumpur and Putrajaya until 2025.

On its RM7.05 billion Vietnam power plant project, JAKS Power Sdn Bhd's executive chairman Goh Theow Hiang said the project will start to contribute to the group's earning, starting next year.

According to Goh, construction of the power plant is expected to start early next year, while electricity generation is scheduled to begin in 2020.

Hence, he said the group will recognise a total of US$454 million (RM1.9 billion) construction revenue from the engineering, procurement and construction (EPC) contract, during the construction period.

Following that, he added that the group will record income from the power generation. However, he did not disclose the amount.

Recall that the company had on July 16, roped in China Power Engineering Consulting Group Co Ltd to jointly build and run a US$1.87 billion (RM7.05 billion) 1,200MW power plant in Vietnam.

The project comes under a 25-year concession.

On outlook, JAKS said its property and construction segments will continue to contribute greatly to its earnings.

Ang said the company's construction orderbook remains healthy, which stands at RM700 million (excluding the Vietnam power plant project) as at June 30, 2015.

"On the property side, we have an unbilled sales of RM400 million," Ang added.

"We are also looking at new orders from the construction side to replenish our orderbook," Ang pointed out.

Shares in JAKS Resources was trading at 98.5 sen, up 3.5 sen or 3.68%, after some 5.42 million shares changed hands.

The current price gives it a market capitalisation of RM416.44 million.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)