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Jaks by KYY....can post your comments here.
stockmanmy
Publish date: Sun, 26 Nov 2017, 10:44 PM
stockmanmy
0 76
Trade at your own risk. I am here only to vomit out my feelings
very well written. Nothing to improve.
Also,
the rich gets richer, the poor gets poorer. Law of capitalism.
the rich have the virtues of patience and investing when it is not the hottest thing in town, the poor is in a hurry.
now, just wait for execution. With CPECC as the principal executioner, one can hardly find a better partner in the world.
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JAKS’ 1,200 MW coal fired power plant, Vietnam site visit
Koon Yew Yin 25 Nov 2017
As you know, JAKS’s profit for 3 quarters of the year was not so good and many weak shareholders simply dump their holdings without looking at the future profit growth prospect which is the most important consideration. As a result, its share price is being depressed.
Many shareholders have asked for my opinion as they wanted to know if they should sell or hold on or buy some more shares.
If you need money badly and you are not a long-term investor, you should sell. But you must bear in mind that statistics shows that long term investors made more money than short term investors. If you have funds, you should take advantage to buy during the cheap sale.
On 17 Aug, the company announced the sale of 4 parcels of land to Sunway Holdings Sdn Bhd for Rm 167 million and with a net profit of Rm 107 million.
On 2 Oct, the company announced the sale of another parcel of land to Hectare Sdn Bhd for Rm 25.8 million with a net profit of Rm 18.5 million.
The total profit of Rm 125.5 million will most likely be included in the next quarter and I am sure when investors see these profit announcements, they will rush to buy JAKS shares to push up the price.
As you can see from the company announcement, the Company CEO Ang Lam Poah, a few directors, my wife Tan Kit Pheng and I have been buying additional shares because I strongly believe I can make a few hundred per cent within the next few years especially when the power plant is completed in two and half years’ time.
If you look at the article on my track record in which I mentioned my purchases of Latitude, VS Industry and Lii Hen and became the 2nd largest shareholder of each company. Each of these 3 counters went up a few hundred per cent within a few years. I strongly believe JAKS will perform the same way as any of the 3 counters I mentioned above, otherwise my wife and I would not have bought 150 million JAKS shares.
On 14 Nov 2017, the CEO of JAKS, Mr Ang Lam Poah and his team took my wife and I including Mr Ooi Teik Bee, James Ong, Allan Gan, Grace Chang and Tey Kok Shin to see the construction of the 1,200 MW coal fired power plant in Hanoi, Vietnam. We were told that the Chinese JV partner will be able to complete the power plant ahead of Schedule in June 2020.
About 6 years ago, the Vietnamese Government awarded to JAKS Resources Bhd the contract to construct 4 units of 300 megawatts (MW) coal-fired power plant to sell electricity to the Vietnamese Government for a 25-year period in August 2011.
Since the total cost of US$1.87 bil (RM7.76 bil) (based on US$1=RM4.15) is so huge that JAKS could not find any bank to finance the project, the construction of the power plant was postponed several times until JAKS found China Power Engineering Consulting Group Co Ltd (CPECC) to be its joint venture partner in March 2016.
The construction is scheduled to complete in 2020. CPECC is very experienced in conducting survey and designing of power generation and transmission plants. Moreover, CPECC has been playing a leading role in China’s power survey and design industry with about 90% of such work in the country undertaken and completed by the group.
After careful study of the viability of the concession, a consortium of three banks, namely Industrial and Commercial Bank of China, China Construction Bank Corporation and Export-Import Bank of China have expressed preparedness to finance US$1.4 bil (RM5.81 bil) for the entire scheme.
Assurance of project completion
The three Chinese banks accepted the power purchase agreement (PPA) duly signed by the Vietnamese Government as collateral to finance the project. The banks will provide 75% of the funding for the project cost totaling of RM7.76 bil with the balance (25%) to be borne by JAKS and CPECC.
To protect the banks’ interest, the financiers must make sure that the PPA is water-tight and that JAKS and its JV partner must be able to complete the project on time. Both JAKS and CPECC must also be financially sound, otherwise they will not be capable of paying up the remaining 25% of the project cost of RM7.76 bil which amounts to RM1.94 bil.
To ensure that the whole project can be completed satisfactorily, the Chinese JV partner undertakes the full responsibility to complete the construction and operate the power plant for 25 years. JAKS will receive US454.5 mil (RM1.89 bil) during the construction period and 30% share of the independent power producer (IPP) business. The profit of about RM400 mil for JAKS will flow back into the JV company to fund JAKS’ equity portion. In other words, JAKS only needs to fork out RM203mil to own a 30% stake in the power plant. JAKS is also given an option to buy up another 10% of the JV company.
In essence, JAKS is sure to make RM400 mil during the construction period. Upon completion of the power plant project, both JAKS and its partner will enjoy profit every year for 25 years from the sale of electricity to the Vietnamese government.
As a co-founder of Mudajaya, Gamuda and IJM Corporation, I have more than 50 years of experience in the construction industry. In fact, I was involved in building more than 10 power plants and the first was Tungku Jaffar power station in Port Dickson, Negri Sembilan about 50 years ago.
I am very impressed with the Chinese contractor in the power plant construction. The piling for the foundation is almost completed, although you cannot see the piles but you can see the chimney under construction. The chimney is 170-meter-high which is 650 feet, equivalent to a 56-storey building.
Mr Ang has just visited China to inspect the fabrication of the steel structure and the manufacture of the 4 units of 300 MW steam boilers. They must make sure the boilers can last more than 25 years.
Conclusion: Investors must note that when the company CEO and substantial shareholders are buying the shares, it can only mean that the share is under-priced.
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Discussions
Be the first to like this. Showing 48 of 48 comments
https://klse.i3investor.com/blogs/koonyewyinblog/47525.jsp
My wife and one of my closest friends told me that it is unethical to publish articles regarding the shares that I own because some readers who do not know me well would doubt my good intention. However, at my age and my financial standing I am not afraid to post this article as long as my intention is noble and altruistic. I want to teach you how to fish!
Since I wrote about Jaya Tiasa, many readers wanted to know about my other holdings. Mudajaya is my second largest holding. I also have some Xingquan, Success Transformer, Kulim, MFCB and smaller holdings of a few other counters.
As you know, many financial institutions are covering this stock and despite their frequent recommendations Mudajaya’s share price has been trading around this current level of Rm 2.70 in the last 3 or 4 years. Why should it be selling cheaper than its peers in terms of P/E ratio?
As you can see from the price chart, average price for the last few years is about Rm 2.70 and the downside risk is very small. For the share price to break out of this price range it needs a powerful catalyst which should be the announcement of its profit from its 26% share of the Independent Power Producer (IPP) concession in India. Let me give you a brief description of this project.
I was one of the original founders of Mudajaya and during my tenure, I constructed the 1st phase of the Tungku Jaffa power Station in Port Dickson about 40 years ago. Since then the company has completed 19 power plants as a construction contractor. The company specializes in power plant construction.
But in India, Mudajaya has taken a different role. Mudajaya holds 26% of a consortium to construct, own and operate 4 units of 360 Mega Watts coal fired power plant to generate electricity for sale to the Indian Government.
The total power is 4 units X 360 = 1440 mega watt. One mega watt can light up about 1,000 homes.
The estimated construction cost is about USD 4X360 MWX 1.3 million = USD 1.87 billion
The annual coal consumption is about 4,500 ton X 4X360 = 6,480,000 ton per year.
Assuming the coal price is USD 50 per ton, the annual cost of coal used = USD 324 million.
All these figures are mind boggling, hard to imagine any company has the financial ability to undertake this large concession for 25 years.
In India, a consortium of financial institutions finance the construction cost basing on the Power Purchase Agreement signed by the Indian Government. The banks must make sure that the power purchase agreement (the selling price of electricity) is profitable to Mudajaya and its partners otherwise the bank will not get back their money. The power purchase agreement is for 25 years and the power tariff will be adjusted to cover cost of coal, inflation, foreign exchange etc.
The first unit of 360 mw will be operational by end of March and the second unit will be operational by end of the 2nd quarter. By the end of the year all the 4 units will be in full operation.
The completion date has been postponed a few times until investors are fed up. As a result the share price remains depressed for so long. I believe the announcement of the additional profit spread over 25 years will be the catalyst to propel the price upward.
Today while I was writing this article, a big fund was buying aggressively to push the price up by 12 sens to close at Rm 2.80. The total volume traded was 2.972 million shares. It looks like the long delayed announcement of the additional profit from the Indian IPP concession will be out soon.
I am obliged to tell you that Mudajaya is my 2nd largest holding and I am not asking you to buy it. But if you do, I am not responsible for your losses.
2017-11-27 07:14
https://klse.i3investor.com/blogs/koonyewyinblog/55455.jsp
About 7 years ago, CIMB research had a buy recommendation for Mudajaya because of the Indian power project as shown in the report below. Investors have waited for 7 years and all of them are tired and disappointed in waiting for the completion of the Indian power project. Finally the 1st unit of 360 mw will start firing in a few weeks and most likely all the 4 units of 360 mw will be operational by year end. How will this benefit investors?
What is this Indian power project?
About 40 years ago, when I was the CEO, Mudajaya built the 1st power plant called Tungku Jaffaar Poer Station, Port Dickson, Negri Sembilan, Malaysia. Subsequently Mudajaya completed 18 more power plants in Malaysia as a construction contractor. Mudajaya is a specialist in power plant construction.
But in India, Mudajaya holds 26% in an independent power producer (IPP) joint venture with an Indian partner to undertake the construction of 4 units of 360 mw coal power plant and the sale of electricity to the Indian Government.
Perhaps if I tell you some brief details of the Indian project, investors can imagine the difficulty of completing such a large project and forgive Mudajaya for the long delay.
The size: 4 units of 360 mw, totaling 1440 mw.
Cost: The total construction cost is about 1440 mw X US $ 1.5 million X 3.20 = RM 6,912 million.
Coal consumption: 1440 mw X 4,500 ton = 6,480,000 ton per year
Coal consumption cost at US $ 30 per ton = 6,480,000 X 30 X Rm 3.20 = Rm 622 million per year.
Power line construction cost: Rm 2 million per kilometer, total length required ??
Mudajaya holds 26% in this joint venture and its estimated profit is about Rm 70 million per year for 25 years which all investors have been waiting for.
2017-11-27 07:17
https://klse.i3investor.com/blogs/koonyewyinblog/131574.jsp
I recall that CIMB was the under writer at Rm 1.70 for its IPO about 7 years ago and the auditors was and still is SJ Thornton of Singapore. I remember its retired senior partner a Chartered Accountant, is my cousin who is also 84 years old like myself.
You can see in its latest accounts that its NTA is Rm 1.90 per share with a lot of cash in the bank. I cannot believe the company could simply cooked the books to bluff the highly respected auditors for so many years.
I visited Xingquan’s factory in Fujian. It used all its money from the IPO to build a large factory with hostel accommodation for 2,000 workers. These assets must have appreciated many folds.
2017-11-27 07:24
No sure whether OTB accompanied him to visit the large factory with hostel in China or not....not sure whether the Boss bring them to Kara-Oke at night or not...
2017-11-27 07:25
But certainly the large factory with hostel looks more convincing than this photo in Vietnam.
Nevertheless the blue sky with clouds n OTB's big tummy looks real
2017-11-27 07:28
"Conclusion: Investors must note that when the company CEO and substantial shareholders are buying the shares, it can only mean that the share is under-priced. "
OR trying to manipulate the share price.
2017-11-27 07:57
He may be a good investor but sometimes the environment and the circulation around may not fit him. This is not about we hope him up or down, but some others may.
2017-11-27 08:07
Mudajaya’s Wild Card - Koon Yew Yin
Author: Koon Yew Yin | Publish date: Fri, 28 Feb 2014, 10:56 PM
https://klse.i3investor.com/blogs/koonyewyinblog/55455.jsp
Charles T quoted an article written in 2014.
2017-11-27 08:18
http://www.investlah.com/forum/index.php/topic,76027.msg1543956.html#msg1543956
Reviewing the performances of the companies KYY bought in 2014.
2017-11-27 08:31
http://www.investlah.com/forum/index.php/topic,76027.msg1543958.html#msg1543958
Reviewing the performance of the companies KYY bought.
JAKS’ 1,200 MW coal fired power plant, Vietnam site visit
Koon Yew Yin 25 Nov 2017
If you look at the article on my track record in which I mentioned my purchases of Latitude, VS Industry and Lii Hen and became the 2nd largest shareholder of each company. Each of these 3 counters went up a few hundred per cent within a few years. I strongly believe JAKS will perform the same way as any of the 3 counters I mentioned above, otherwise my wife and I would not have bought 150 million JAKS shares.
2017-11-27 08:41
@ Charles T. Nothing but pure nostalgia. Thanks for being so factual of the past. It is always pertinent to state the facts correctly so as not to cause people to become gullible, cheers.
2017-11-27 11:13
Some newbies may not know his past records and his style and could be easily influenced by his optimism n confidence (and most importantly his social status)...
Let them c some of his history so that they could know him better and make a better decision then.
2017-11-27 11:19
OTB is the old man wearing horizontal striped shirt?
Posted by kchia > Nov 26, 2017 11:45 PM | Report Abuse
4th from left
2017-11-27 11:22
https://klse.i3investor.com/blogs/koonyewyinblog/71737.jsp
My response to comments - Koon Yew Yin
Author: Koon Yew Yin | Publish date: Mon, 2 Mar 2015, 12:28 PM
Mudajaya: When I recommended Mudajaya, the company had lots of construction contracts, property development in KL and was holding 26% of 4X360 MW coal power IPP (independent power producer) in India. For some strange reasons, the Indian IPP project cost overran and the company lost money.
I am also ashamed to admit that I too have lost money.
All readers including my critics must bear in mind that both Latitude and VS have gone up in price since I posted the articles. I stated very clearly that I own a lot of these 2 stocks and if you buy you are doing it at your own risk. Moreover, I do not need you to buy to support the share prices. If you lose money, you cannot blame me and if you make money, you do not need to give me some share of your profit.
I want the stupid idiotic commentators to know that every day when VS goes up by 10 sen we are richer by 1.5 million Ringgits because my wife and I own 15 million VS shares.
The last article of him on Mudajaya I3 was on 05 July 2014. Then he admitted he sold all his Mudajaya in one of seminar held by Invetalks in Oct/ Nov 2014......
2017-11-27 11:27
Look at some of these shares today, mudajaya @ 1.04, JTiasa @ 1.12, Xingquan @ 0.055 (suspended), etc. Please exercise caution for the newbies. Remember there is no free lunch in this world, cheers.
2017-11-27 11:32
One thing I couldnt understand why Stockman posted this thread here inviting comments knowing that most of the comments here may not sound that sweet to the oldman.......
U jealous he brought OTB makan angin there and not you so u took revenge ah?
2017-11-27 12:01
KLSE better suspend trading all counters for one month immediately like how China did back in 2015
>:D
This panic sell can make KLCI dip from 1600 to 800 in no time.
2017-11-27 12:08
Dear CharlesT,
You really know Mr. Koon past records and postings very well. Well done.
I would rather have critics like you reminding me of my past failures rather than some new friends praising me and feeding my ego least I forget that to err is human.
The estimate of JAKS next Q4 profit is public knowledge as JAKS had already informed Public of the land sales.
Note: Similar to Bplant, Prai land sale profit only recognize in current Q3 and management give a generous dividend of 10 cents and proposed 2 bonus shares for every 5 existing Bplant shares.
I will attend the next JAKS AGM and will ask for good governance and Transparency. (A monthly or quarterly photo updates on the progress of Vietnam Power plant in JAKS website)
Lastly a quote from Gandhi which says: “The root causes of conflicts and violence are wealth without work, pleasure without conscience, knowledge without character, commerce without morality, science without humanity, worship without sacrifice, and politics without principle.”
Have a happy trading day
Thank you.
2017-11-27 13:18
KLSE sentiment likely drop to freezing point due to countless attack from DR.M Robert K proton China Trump ****
>:D
2017-11-27 13:22
Bitcoin is flying to the moon I am surprise no one want to talk about it.
Everyone is trying to ignore it.
I had disappointed by it.
So Investing is strictly need to satisfy the value investing?
2017-11-27 15:06
>>>PlsGiveBonus Bitcoin is flying to the moon I am surprise no one want to talk about it.
Everyone is trying to ignore it.
I had disappointed by it.
So Investing is strictly need to satisfy the value investing?
27/11/2017 15:06<<<
You must know the difference between investing and speculating.
If you wish to buy Bitcoin, you are not wrong, provided:
1. You understand you are speculating. You may lose a lot of money too and you can also make a lot of money too.
2. You should set aside a sum of money solely for this purpose and also be prepared to lose it all if things do not turn out well.
3. Most importantly, do not add more money to this venture if you were to find yourself in a losing or winning position. Be happy with what your initial investing amount delivers or fails to deliver.
There is no reason why you cannot indulge in Bitcoin providing your speculating is intelligent.
2017-11-27 18:34
There's no certainty in investment except you can putting all your efforts in assessing the risk-reward considerations.
By doing so, you will certainly comfort yourself in that investment. The project is still on going and need another 2years for completion, there's certainly risk involved particularly in country like Vietnam that inherited with proven historical financial turmoil as we witnessed in 2008...
In addition, in the absence of sound legal framework and lacking of effective political reformation ....if would be unsound to adopt "sailang" approach in JAKS...
God never equip human being with perfect skill in assessing calculative risk ! it's bound to miscalculation along the over-confidence journey!
2017-11-27 19:05
Investing, value investing, invest in a valuable company and you will expect the director to help you make money by pushing up the share price, directors are given the responsibility to feed you mouth, to feed all the investors mouths, this is what has became to the investing.
Instead of hoping director alone to help you push up the price, Bitcoin open up the possibility that everyone is responsible to push up the share price, no one own anything, the value is perceived, it do not have a director.
Now you think investing is not speculating, this is very bad idea, you are basically expect director to help you make money when director themslef can't even afford to pay dividend or even run a company, director play all the roles, this is absurd, whoever come up with value investing must be full of absurdity.
2017-11-27 23:32
Zimbabwe could be the most valuable country in the world, it has very valuable resource, gold diamond platinum palladium, crude oil, value investor should love Zimbabwe since it is extremely undervalue, why can it become so undervalue? This is money! Money do not follow value investing, money create wealth gaps, the nation who has the smartest elite control all the wealth, it is the purpose of investing. :)
2017-11-27 23:50
KYY, thank u for ur sharing. Keep it up, don't give up because of those negative thinking ppl here.
2017-11-28 06:58
stockman, what is the point of u creating a comment blog here.. u lose some of my respect..cari pasal
2017-11-28 15:29
Forum is for exchanging opinions on stock prices n for providing information. Do not go personal.
2017-11-28 15:44
Jaks managing director, Andy is well known among fund managers for his notorious management and dishonesty. most of his land and property in selangor is acquired from previous ruling party. the latest Q result is making losses if u deduct the equity accounting on vietnam progressive project. Jaks got the vietnam PP more than 8 years ago and they fail to raise fund hence they set up a company to jv with china party. Jaks didn't get loan from china bank but getting shareholders loan from china party without disclosing the terms and condition. If the PP project is so good why jaks directors did not increase their shareholding substantially or self generate funds from the directors? furthermore Jaks has no knowledge nor management on coal PP. if u look at the financial report, there r none or maybe 1 or 2 small cap fund management holding their shares. only KYY and his wife owns more than 30% of jaks shares.my best guess is KYY friends and relative owns 15% of jaks shares. bare in mind that coal price is volatile and vietnam government wont increase electric bill overnight as it will cause havoc on household consumer and industry. Most of vietnam coal is sold to china in black market plus coal PP maintenance is high and the downtime is longer compare to other PP such as hydro PP, solar PP and other renewable energy PP. Vietnam is a very corrupted country where mudajaya oso encounter the same issue on india coal PP. I hope i m dead wrong about it and good luck on investing it.
2017-11-30 02:55
I refer to alexyoong's above comment. Please go to my blog to read my article "Why I bought into Jaks?" After searching for 6 or 7 years, Jaks finally found the Chinese company which has been involved with about 90% of the coal-fired power plants in China to JV. The consortium of 3 National Bank, after examining the power purchase agreement carefully, they agreed to finance 75% of the total cost of Rm 7.76 billion. The selling price of the electricity depends on the price of coal, depreciation of the plant, profit for the JV company, etc. The banks must make sure that the JV company can make profit, otherwise, they cannot repay the loan.
As far as Jaks is concerned, the company has completely subcontracted the whole project to the Chinese and in return, the company will receive Rm 400 million during the power plant construction and 30% plus 10% option of the company that sells electricity to the Vietnamese Government for 25 years.
As a co-founder of Mudajaya, Gamuda and IJM Corp, I have examined hundreds of contacts before, during my 55 years experience in the contracting business, I have not seen such a juicy power purchase contract or agreement. Jaks with such a small market capitalization can own 40% of the JV company which owns the 1,200 MW power costing Rm 7.76 billion to build. Moreover, Jaks does not need to borrow money to pay for the 40% share of the JV. On top of all that, the consortium of 3 National Chinese Banks guarantees that the JV makes the profit every year for 25 years.
Thatis why my wife and I bought more than 150 million shares.
Koon Yew Yin
2017-12-08 15:58
<a href="https://www.enterprisenetworkingmag.com/"> Enterprise Networking Magazine</a> is one of the best printed networking technology magazine which features the latest technology trends used in the networking industry. It unfolds the technological advancements with the help of insights from proficient CIOs, CXOs and networking technologists.
2019-09-03 16:55
<a href="https://www.enterprisenetworkingmag.com/"> Enterprise Networking Magazine</a> is one of the best printed networking technology magazine which features the latest technology trends used in the networking industry. It unfolds the technological advancements with the help of insights from proficient CIOs, CXOs and networking technologists.
2019-09-03 16:56
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我只想说...otb发福了
2017-11-26 22:54