AES Corp Mong Dong 2 is 51% owned by US firm, 30% owned by a korean firm, and 19% owned by a chinese firm. 100% foreign owned !

Vietnam is in desperate need for electricity power to achieve its economic growth target. It needs huge foreign investments in power generation. It has relaxed its regulations to meet the stringent requirements of foreign bankers. These foreign providers of loans must ensure that the projects are certain to be viable.

For example, AES Corp 51% owned mong Dong 2 power plant in Vietnam which started operation in Mid 2015 distributed US$46m and US$51m to AES Corp in 2016 and 2017 respectively. This proves that power plant project in Vietnam can be profitable once in operation.

Zoozooka, I appreciate your advice. However, despite all associated business risks, I believe Jaks' potential future earnings of more than RM100m (based on payback period of 8+ years, and IRR of 12%) for 25 years after the power plant begins operation certainly warrant much higher valuation than RM1.50. My view is that a company with a stable stream of earnings for 25 years can easily commands a PE of 15 to 20 times.

Kaliaoki, appreciate if you could share your source.


kaliaoki be careful guys, Vietnam source jaks construction cost huge overrun and Chinese claim substantial change orders

wetmarket, I come to i3 hoping that it could be a place where everyone can share credible information for making decision, but i m quite disappointed.

Jaks had been making consistent profit margin of 23%+ for the last few qtrs on its vietnam power plant jobs which were subcontracted to cpecc. 23% on US$454m jobs. Is that considers big fat profit ? To some maybe not ....

There is a lot of information in the JV agreement. Read it carefully.

Go to the bursa malaysia website and check up the company announcement on the JV agreement with CPECC

Jaks is not involved in the construction of the Vietnam power plant. It has fully subcontracted its works to CPECC.

Vietnam power plant is the reason why investors are here. Its enormous future earnings makes current problems trivial.

Jaks has paid RM200m of its RM600m equity capital requirements for its vietnam power plant project.

The balance RM400m will come from construction profit. Regardless how the profit is made and how it is used, it is REAL money REAL Profit. Definitely not left right pocket thing. Otherwise, the company Auditor will not allow it to be recognised as profit.

Once the power plant starts operation, it will pay back all its investment including the RM600m capital.

No can can speculate what really happened.


stockraider REMEMBER THIS LOH..!
IF STAR CALLED FOR CHANGES IN DESIGN, JAKS BEING CONTRACTOR CAN ASKED FOR EXTENSION OF TIME AND ADDITIONAL COST REIMBURSEMENT, IF THIS IS NOT GRANTED BY STAR, JAKS CAN REFUSED THE CHANGES AND STICK WITH ADDITIONAL DESIGN MAH..!!

HOW COME JAKS DID NOT OBTAIN EXTENSION OF TIME & REIMBURSEMENT ?.
HOW COME JAKS DID NOT STICK TO THE ORIGINAL CONTRACT WHEN EXTENSION AND REIMBURSEMENT IS NOT GRANTED ?
HOW COME JAKS CANNOT COMPLETE THE ORIGINAL CONTRACT ON TIME LEH ??

Star has requested for changes, it is not up to anyone but the court to decide whether the delay is reasonable. Changes from residential to commercial property is complicated.

If Jaks has no grounds in the star media case, the court would have rejected the injunction outright.

In worst case scenario, Jaks only lose up to RM25m in the star media case as it only owns 51% of the project.

"STAR is confident of defending its statement against Jaks Resources Bhd (JAKS) and believe will receive the bank guarantees of RM50m that was provided by the latter in relation to ensuring the completion and delivery of the Tower A (currently c.95% completed) in Section 13. JAKS subsequently obtained an ad-interim stay restraining the banks from fulfilling the bank guarantees. The matter is to be heard on March 7. In a separate announcement yesterday, JAKS has issued a notice of arbitration to resolve the legal disputes. Having said that, the bank guarantee is set to return (after deducted the relevant interest charges) to JAKS when the latter complete and deliver the said property development. We understand that STAR intends to reallocate its Radio and Digital (Dim Sum) operations to the Tower A (which has a net rentable square feet of c.230k) and occupies three floors throughout the building. To recap, under the corporate guarantee, JAKS is to ensure its subsidiary, JAKS Island Circle S/B (JIC), fulfils all its obligations under the SPA signed in August 2011 where STAR sold a piece of land in Section 13 for RM135m. In lieu of cash, JIC is to deliver a 15-storey office block known as Tower A. Nevertheless, the delivery of the tower has been delayed by 28 months despite the media company giving four extensions." - KENAGA INVESTMENT

NOTE that the bank guarantee is set to return (after deducted the relevant interest charges) to JAKS when the latter complete and deliver the said property development. - Not a total loss

KYY is just a scapegoat to incite fear.

I have never seen so many negative callings in a stock. Even Hengyuan gets more positive comments. I just know that everyone is here because of the Vietnam power plant.

I will be more worried if everyone here is calling to buy.

KYY is busy preparing for the EGM. If he is elected to the board of directors, he is likely to implement his propposal.

https://klse.i3investor.com/blogs/koonyewyinblog/136761.jsp

KYY likely to implement his bonus and warrant proposal if he is elected to the board of directors.

My advice is don't buy Jaks if you don't believe in the Vietnam power project.

Star already made a claim on the bank guarantee. why still demand sth from Jaks whether it can complete the building by June 2018 ? Maybe it just realised that it didn't follow the right procedures to claim on the bank guarantee ?

I feel worried for Andy, not myself. I m not selling. They are probably going to fight for market shares.

Very close to the 33% threshold for GO

Koon yew yin and wife now has 31.745% of Jaks

Jaks did all the initial works. secured the licence and did all the paper works including all the agreements. Then, found a partner to build the power plant and wait for profit. Why is that so unbelievable ?? It happens all the time !

Don't just trust me. Find out from the JV agreement announcement in bursa malaysia !!

Jaks has subcontracted all its works related to the power project to CPECC !

There are still people who think that Jaks is the one that is constructing the Vietnam project ?!!

In time, more and more critics will turn supporters as they accumulate at low prices.

Based on the progress of completed similar projects in Vietnam, Jaks power plant will be 50% completed by the end2018. of

Since Jaks was awarded the licence to build a 1,200MW thermal power plant, it has partnered 2 chinese contractors but both failed due to inability to secure bank loan for the project. It even approached TNB while negotiating with china power on fear of fallout. It finally came to term with China power in July 2015 just prior to the deadline for financial close in Oct 2015. Jaks has spent a lot of money. If it failed to secure any partner, it will incurr a big loss as high as RM200m. That is why the shares were traded as low as RM0.40 at one point. Why Jaks willing to risk so much money ? Is the potential from the project worth it ? Jaks went thru so much only to be able to close the deal 6 year later. It could potential be the reason why pacific star construction was delayed for lack of working capital as funds were drawn to vietnam. Jaks was RM0.40 because of potential major losses if unable to find a partner for the vietnam project. Now that the JV is sealed, making comparison to RM0.40 doesn't make sense. Taking so long to secure a partner and bank loan due the size and complexity of the transaction involved. To finally get the project off the ground is definitely an extraordinary achievement for a small company like Jaks. China power has completed 49,000MW of thermal power plant worldwide. It has completed a 1,200MW power plant in vietnam few year ago.

Vietnam power plant construction picking up phase. RM20m profit recognised this qtr. Total profit recognised todate from vietnam is 36m(2016)+55m(2017) = 91m. There is still a balance of 310m to be recognised in 2018 and 2019.

After exchanging of unfriendly views, I don't think OTB will ever recommend Jaks anymore, regardless.

Obviously, Kyy is a businessman and OTB is from academic backgrounds.

KYY and OTB defending their stock selection rules

http://klse.i3investor.com/blogs/koonyewyinblog/148952.jsp

Andy is likely to come to term with KYY on power sharing which is good for everyone. Might be announcement tonite.

During the last AGM, management indicated that the contribution from vietnam for 2017 is estimated between RM50m to 80m depending on progress. So far, RM35m has been realised by Q3. Significant progress will made in Q4. Results will be out today.

Samuel, I will not comment on your investment strategy. Everyone is from different background with different risk profile. You must not take risks more than you can handle. Others may see opportunity and continue to invest if they are confident.

AES Corp just announced its Q4 2017 results. Its 51% owned Mong Dong 1,240MW coal power plant in Vietnam which started operation in April 2015, distributed US$46m in 2016 and US$51m in 2017 to AES Corp. Normally distribution will grow as requirements for working capital, cash reserves for maintenance, and cash reserve for debt covenant, reduce over time. This shows that the power plant is profitable since operation.

A fight for control means the company is worth fighting for. No one fight for a Junk company.

Ctooi, you can talk about risks in every businesses in every aspects, but the vietnam power plant itself is a calculated investment and it is guaranteed an predetermined returns on the capital invested via the power purchase agreement. Of course, that could be uncertain too if there is a war in vietnam.

No matter what would happen, nothing is going to stop the Vietnam power plant from moving ahead.

Why is KYY's intention to get on the board of directors is being taken so negatively? While KYY intention is clearly to safeguard his investments, his entry will definitely make the company more transparent. Isn't this what minorities want ?

Warren Buffett once said that as an investor it is wise to be “Fearful when others are greedy and greedy when others are fearful.”

The 2 parties will soon fight for market shares .......

A lot of wild guesses .....

hahahaha

Mr Koon, you have my full support in case an EGM is called.