Car park in Selangor is good business. So long as the deal is done at arm's length and fair valuation, there is no issue of unfair practices. In fact, in the future, the car park could prove to be lucrative and stable business to Jaks especially if Pacific Star Mall turns up well patronized by shoppers.

More importantly, the RM50m BG resulted in the indebtedness of the JV. In the eyes of Jaks, isn't it a better option for Jaks to be have the debts settled even in kind as opposed to leave the debts in book until don't know when.

This represents a settlement of inter-company balances by way of contra with car parks. No cash flow involved. Hence, it will not affect the cash flow of Jaks.

Windy1974,

You may like to read this article;

Jaks Resources - An excellent joint venture deal with CPECC
https://klse.i3investor.com/blogs/Jaks%20resources/226058.jsp

US$30m

----------------------
DK66, please verify how much JAKS needs to put in OWN money? When I said OWN money, I mean exclude profit from the EPCC contract. To me, JAKS is doing nothing to get that EPCC profit

Windy1974,

I m sorry to disappoint you. I can't answer your questions on the potential LAD. I believe even the management will not know the the final LAD for the pacific star until it is finally completed and handed over.

RM50m BG losses fully already taken up in 2018. No more losses from BG except that the Star is now claiming on Jaks' corporate guarantee.

Evolve mall has a book value of RM320m as at end of 2018. Management guided a market value of RM400m.

Evolve mall already completed, no further capitalization allowed. Further expenditures on the property will be taken up as expenses except if it is related to expansion.

Jaks has made provisions for LAD almost every quarters. I suppose already verified by the auditors to be sufficient up to end of the respective quarters.

Net asset per share as at 30/6/19 was RM1.47. The goodwill of RM148m is questionable and the potential addition of RM308m to investment in JV. Net effect would be additional RM0.25 to net asset per share.

Hope I've helped.

Thank you

-------------------------------------
Windy1974 DK66. Appreciate if you could help answer some of below for me?
1. Star BG RM50mil losses have been accounted for in previous quarter right? So, no more future potential losses from BG except potential LD from Star? Maximum 10% LD?
2. Pacific Star & Evolve Mall. Anyway to know the cost of these projects? Or book value?
3. What's the potential maximum future LD for this 2 project? Presume Evolve Mall's completed so more like operational loss?
4. Net asset per share for JAKS currently RM1.34? Any possibility being inflated figure? If yes, potentially how much?
19/10/2019 8:57 PM

VIN3133, I do not want to waste my time meeting the management knowing that they will not tell me anything I don't already know.

Below is extracted from the 2018 Annual report.

" Operational review of Property Development & Investment division

The Property Development & Investment division contributed revenue of RM107.8 million (before the provision for RM32.3 million LAD and the RM50 million disputed performance liability) in the financial year 2018 compared to RM143.0 million (before the provision for RM8.1 million LAD) in the previous year. The Property Development & Investment division incurred a loss before tax of RM117.4 million in the financial year 2018 as compared to a profit before tax of RM42.2 million in the preceding year. The loss was mainly due to the charge out of RM50 million disputed performance liability and LAD of RM32.3 million. This division faced competitive pricing as the property market slowed down in 2018. The investment property at at Ara Damansara in Petaling Jaya has yet to optimise its yield and with high operating, depreciation and financing expenses, the results of the Property Development & Investment division was dragged down.

The current ongoing mixed development project at Section 13, Petaling Jaya known as Pacific Star achieved sales to-date of RM951 million (2017 : RM915 million), being 86% of the total gross domestic value (“GDV”) of approximately RM1.1 billion. The GDV and sales to-date included the Pacific Star Business Hub (“Business Hub”) which was sold to another subsidiary within the Group. The Pacific Star project is expected to complete by end 2019 and the Group will take a step back from the property development sector for the time being in view of the current property market landscape. As at the end of March 2019, the Group has unbilled sales of RM203 million from its property development projects, giving the Group earnings visibility for the coming years. The Business Hub at Pacific Star which is a four-storey retail and commercial centre, is expected to be completed in the second half of 2019 and will be operational before the year end. This commercial centre will serve the residents and offices from the surrounding established neighbourhood. "

You may like to ask edkfc to share his experience with the management during the AGM.

Ellipse08,

I think now I know who you are. I m glad that you bought back Jaks.

Nikmon, any chance the retail portion operating before year end as predicted by the management ?

https://ihsmarkit.com/research-analysis/power-shortages-imminent-vietnams-power-demand-expands.html

But Soros broke the bank of England, and ALP secured the Hai Duong Power Plant.

-----------------------
u are talking abut KYY...........malaysia's own soros............
18/10/2019 9:54 AM

The following quote by George Soros fits ALP way of doing business

George Soros — 'It's not whether you're right or wrong, but how much money you make when you're right and how much you lose when you're wrong.'

Focus on the forest, not the trees.

Only if there is electricity delivered to the power grid lines

--------------------------------
Ricky Kiat bro GoHaiDuongGo & bro dk66, testing and commissioning of unit#1 got electricity sale ?
17/10/2019 10:41 PM

I have left out an important statement in the article below; Article amended with changes highlighted in yellow.

Jaks Resources - Earning Forecast of Hai Duong Power Plant based on Government Data
https://klse.i3investor.com/blogs/Jaks%20resources/228009.jsp

Note that the above tariff changes announced are only applicable to local coal power producers which are not subjected to the BOT contracts. Under BOT contracts, the plants must be returned to the Vietnam Government free of charge after 25 years operation period. Therefore, logically the returns from operation under BOT should accordingly be higher to compensate for the limited operation period.

MFCB owns 80% of Don Sahong hydro

Jaks owns 30% of Hai duong power plant with option to add 10%

---------------------
VIN3133 Correct info ?
I thought MFCB owns 70%
While Jaks owns 30 %
DK66 , can u pls confirm ?

TQ

You are correct

---------------------
dailyklse2010 Now, Japan is going to BOT power plant project at vietnam.

https://www.jbic.go.jp/en/information/press/press-2019/0419-012106.htm...

https://www.sourcewatch.org/index.php/Van_Phong_power_station

Is more high chance the JAKS Hai Doung power plant is profitable. So who said the again china JV with JAKS is Conspiracy theory is idxxt.

Now Japan bank also do the same thing for BOT project.

DK66, please correct me if i am wrong. Thanks
17/10/2019 5:02 PM

I wish for a peaceful forum

I learned a new word today "Polyandry". Very interesting ....

There will be selling by disgruntled shareholders today. Jaks didn't have a good history with shareholders. Therefore, most, if not all, of its related party transactions attract cynical views.

Settlement of inter-company balances with 1216 car parks is fine so long as it is carried out at arm's length. It does not affect Jaks' cash flows.

How are car park businesses in Selangor ? good ?

I particularly like ‘We are moneyed! We are moneyed!’

-----------------------------
deMusangking [continuation]
THE BUS STOPS, PASSENGERS GO OUT AND IN, THEN MOVES
The driver on the bus alludes‘ Dk spots Miss Jaks! Dk spots Miss Jaks!’.
All day long, all day long
The passengers answer ‘God bless him! God bless him!’
All day long, all day long

THE BUS STOPS, PASSENGERS GO OUT AND IN, THEN MOVES
The driver on the bus says ‘ You all are lucky! You all are lucky!’
All day long, all day long
The passengers answer ‘Thanks DK! Thanks DK!’
All day long, all day long

THE BUS STOPS, PASSENGERS GO OUT AND IN, THEN MOVES
The driver on the bus adds ‘ OTB makes Miss Jaks more rosy! OTB makes Miss Jaks more rosy!’
All day long, all day long
The passengers answer ‘Yeah! Yeah!’
All day long, all day long


THE BUS STOPS, PASSENGERS GO OUT AND IN, THEN MOVES
The driver on the bus shrieks ‘Miss Jaks getting richer! Miss Jaks getting richer!’
All day long, all day long
The passengers scream ‘We are moneyed! We are moneyed!’
All day long, all day long

[the end]

haha
16/10/2019 9:23 AM

http://www.focusmalaysia.my/Assets/the-lucrative-car-park-business

The settlement of inter-company balances with car park is a better outcome for Jaks than having the balance long remained in book.

Therefore, it is my opinion that to take initiative to reduce inter-company balances is a good thing, though may not be the best thing to do.

Ooi,

Nobody is right all the time. You may appreciate the quote from Soros.

“It's not whether you're right or wrong, but how much money you make when you're right and how much you lose when you're wrong.” ― George Soros

--------------------------------------
Ooi Teik Bee
My performance in 2018 was very bad (42% loss). I felt very shameful and I kept on apologize to my subscribers. I could not sleep well at night. I felt very bad for those who lost money.

So far no news
--------------------
pang72 Dk66,
Any more power plant progress, thanks?
14/10/2019 6:58 PM

In order to protect my charming face from rotten eggs, I have made a statement a few months ago that My advice is to buy Jaks below RM0.80 or don't buy at all!

----------------------
VIN3133 If things turn out our way , you see many happy faces !
If things dont turn out our way, everbody starts throwing eggs !!
THAT IS HUMAN NATURE MA !!!

If you read my past comments, you will notice that I reduced my TP due to a tragic drama where someone died. I appreciate reminder from AhSeng that many could be following my calls and I should not "induce" sailang behaviours. Therefore, I reduced my TP.

For the same reason, I should not reveal my next TP until my first TP is hit.

Thank you.

----------------------------
dailyklse2010 DK66,

May i know your second target price ?
14/10/2019 4:58 PM

I m glad to see so many happy faces ! :-))

First target RM2.50

-------------------
VIN3133 EVERYBODY HAPPY !!
BTW , DK66 , What is your TP ?

So far, the result is as follows;

A 6
B 4
C 1
D 4
E 3
F 3 ( 2 - MFCB)

---------------------------------------
DK66 There is a lot of speculation on the reason for the price surge witnessed last week. Lets hear your opinion. Just for fun.

A. The power plant will soon start operation
B. OTB called buy
C. ALP bought 7.2m shares from his partner at RM0.75
D. Chart breaks up
E. Herd mentality "you buy, I buy"
F. Others, please specify

A,B,C,D,E,F or any combinations

wait till my target price hit

My earlier post;

I do not like to answer questions like "I didn't buy earlier, can I still buy at RM1.50 ?". If you think Jaks is great, why not buy now ?

Thank you

because It is the final count down !

So far, the result is as follows;

A 5
B 3
C 1
D 3
E 2
F 2

---------------------------------------
DK66 There is a lot of speculation on the reason for the price surge witnessed last week. Lets hear your opinion. Just for fun.

A. The power plant will soon start operation
B. OTB called buy
C. ALP bought 7.2m shares from his partner at RM0.75
D. Chart breaks up
E. Herd mentality "you buy, I buy"
F. Others, please specify

A,B,C,D,E,F or any combinations

VIN3133,

I m sure OTB has read your message.

Dailyklse2010,

Thanks for your opinion

Anyone else ?

---------------
ccy123 DK66, my answer is E

I strongly believe it is because of "A"

There is a lot of speculation on the reason for the price surge witnessed last week. Lets hear your opinion. Just for fun.

A. The power plant will soon start operation
B. OTB called buy
C. ALP bought 7.2m shares from his partner at RM0.75
D. Chart breaks up
E. Herd mentality "you buy, I buy"
F. Others, please specify

A,B,C,D,E,F or any combinations

Will this help Jaks ?
https://klse.i3investor.com/blogs/savemalaysia/229785.jsp

Kcchongnz,

Thank you

---------------------
I always think DK66 is a very honest contributor in i3investor. The above confirm what I think. When DK66 writes something, he is basing on information, detail analysis, and true sharing. Though sometimes I do not agree with him.

There are very few in i3investor are like that. Most of them are touting their stocks, ask you to buy the stocks they have, sailang and margin, while they are profiting from it. They brag about how rich they are, how good they are, and if you follow them, you are stupid.

There are few things you can learn from i3investor, but this is the best,

"Trust no one but yourself. What you get from i3 can only be used as references at best."
13/10/2019 2:47 PM

ELLIPSE08,

We are all strangers in i3, not obligated. In my opinion, i3 is a dangerous place for unarmed people. People must be armed with the basic ability to analyse information presented by strangers. Otherwise, you are easily hunted by predators and your life savings taken away. It is a hundred times easier to lose money than making money in stock market. Always ask yourself, what have you got to make you a better player than others in stock market.

Less than 5% of investors are able to profit from stock market. These are insiders, professionals, fund managers and highly intelligent investors. Where is your place ?

Trust no one but yourself. What you get from i3 can only be used as references at best.

Mr koon had said that the power plant was the reason he bought Jaks. He had also said that he had to sell jaks due to margin calls. He later said that he was wrong about Jaks because he did not considered its property business. I knew that he wasn't happy that Andy Ang did not give him any board seat.

Can anyone draw any conclusion whether Mr koon was logical ? I can't

I can't possible base my investment decision on someone's actions. It would be irresponsible to myself. I could have sold off Jaks at below RM0.50.

I can only judge Jaks based on the facts and evidences before me.

Kcchongnz,

Thank you for clarifying your view on Jaks. At best punting only.

----------------------
In my opinion, the prospect of the power plant far outweigh the risks in other businesses as it appears that it is a lucrative business. But that is not the point for me.

Bear in mind, someone had invested about RM300m in Jaks and became the major shareholders in Jaks, also based on the assumption that the power plant is a very lucrative business. He even said the Chinese banks "guarantee" Jaks will make a lot of money. Haven't you read that?

But why did he sold off all his shares in such a promising stock, some more with a loss of more than RM100m, in a single stock? Do you think he is so stupid? May be yes, may be not.

I did make about 20k punting on Jaks, closing my position last week, within a week. Yes, punting is the right word, and not "investing".

Why do I use the term "punting"? By the way, this is just my opinion. You have to make your own judgment, and your judgment may be better than mine. I am just speculating. But do pay attention to some comments which are not the same as yours. One of the credible ones is here,

Posted by sense maker > Oct 10, 2019 11:20 AM | Report Abuse
Doubting Koon is worried he will get eaten by this stock the second time. Once bitten twice shy. He boasted about jaks at rm1.40 but then he badmouthed jaks after he exited at a price as low as 40sen plus.
Even if the power plant proves more than accounting profits, it is almost certain the controlling shareholders would not share any cash profits through dividends to shareholders.
Exercise caution, everyone.
13/10/2019 10:46 AM

Kcchongnz,

In my opinion, you deserve the "sifu" title. Anyway, I respect your wish.

Kcchongnz, Thank you.

You have clarified that the later part of your statement is more important. Most, including myself, are now confused.

Are you able to weigh the prospect of the power plant against the risk of other businesses and provide an overall simple conclusion ? Thanks.


-----------------------------------
The following part of the statement which I made, in my opinion is more important, and must be included too,

"However, when we invest in Jaks, bear in mind we are not investing in the power plant, but the whole of Jaks; its other businesses, its management especially."

I m glad to have sifus Icon8888 and qqq3 with me from the start. I received vote of confidence from Sifu Kcchongnz. His recent encouraging remark on Jaks;

"Jaks' worth in this power plant per share basis, in my opinion, is definitely worth a lot more than its 75 sen per share, no matter how we slice it. If you are investing in Jaks based on this assumption, I don't think you should worry about it. There is a big margin of safety."

Last week, Sifu Ooi Teik Bee signaled his confidence in Jaks and made entry.

Now, Sifu Sslee agreed that Jaks power plant is a game changer/jewel and in fact life saver for Jaks.

However, Mr koon is still having doubts in Jaks.

Nevertheless, Jaks is now strong enough to move on.

I would like to invite all sifus like Phillip, 3iii, Probability, etc to share their views on Jaks. This will benefit readers here.

Thank You

I m glad that Sslee has finally agreed that Jaks Hai Duong power plant is a great asset. I hope more people will be convinced.

Even if the EPS is only more 0.15, it is still quite safe buying Jaks below RM1.00.

The higher the share price, the higher your investment risk.

I do not like to answer questions like "I didn't buy earlier, can I still buy at RM1.50 ?". If you think Jaks is great, why not buy now ?

Thank you

-------------------------------------
Sslee Hahahaha deMusangking,
Good morning. I am not a naysayer. I agreed Jaks Hai Duong Power Plant is game changer/jewel and in fact life saver for JAKS without it JAKS is dead and buried. My only concern and hesitation is on ALP. Wish all Jaksians success on your investment and please keep ALP in check/accountable during AGM.

Thank you
13/10/2019 8:26 AM

Sarifah, Good morning

EPS of 0.15 is way below my estimates.

I remain confident that the project IRR of Jaks power plant is at least 15%.

The Mong Duong II has demonstrated that just the Capacity payment alone (without operating the plant) is worth about EPS 0.25 (30% interest) and EPS 0.35 (40% interest). It is not logical to assume that the plant will be left idle.

OK, very interesting indeed........

May I ask why do you have to justify buying jaks on i3 ? Your subscribers wanted you to do so ?

--------------------------------------
Ooi Teik Bee Many of my subscribers are not happy with this article, they requested me to justify my buy recommendation on Jaks.
I feel very odd to write this justification in I3. I do not have a choice because my subscribers are my boss.
12/10/2019 10:59 PM