Jadason Enterprises earnings fall 19% to $1.03m in Q3

Its lacklustre quarter was driven by shortage of workers and parts.

Machine distribution company Jadason Enterprises' Q3 earnings fell by 19% YoY to $1.03m as its total workforce stagnated at 600 since last year.

According to Jarick Seet of RHB Research, Jadason Enterprise’s underperformance is also driven by lack of supply and delay in the delivery of high-precision parts as it moves to upgrade its machines.

Seet believes that Jadason is on its way to full recovery as it will be able to hire additional manpower by February 2018 after the Lunar New Year.

Additionally, Seet forecasts a stronger 4Q for the machine distributing company due to the growth in customers for its mobile segment and the launch of its mobile product in the market.