Don miss the LAST chance on Paramount upcoming special dividend 30sen/sen and record EPS gain 82sen on disposal, a massive incremental value on current market price now at RM 1.35.

Now is courting down time to announce special dividend 30sen/share soon.

bought back malton at 45sen

Please take note, the strong rebound come together with more than 3x higher volume, indicate that more upside on recovery next.

bought YTLP at 77sen

add more paramount at 1.33

sold back jtiasa at 84sen

sold back rswait at 31sen

Very strong rebound with huge volume

Just keep it and treat it as 10% dividend income stock

The recovery come with 2 x higher volume

The disposal will allow paramount to realize gain EPS = 82sen/share and declare special dividend 30sen/share. The declaration of special dividend will be anytime from now.

The proposed disposal includes 69.7% of Paramount Education Sdn Bhd, 80% of Paramount Education (Klang) Sdn Bhd and 80% of Sri KDU Sdn Bhd, for RM134.5 million, RM21 million and RM385 million, respectively.

The proposed disposal is expected to result in a pro-forma gain on disposal of RM487.81 million, which will be utilised for special dividend distribution (RM177 million), acquisition of landbank (RM150 million), repayment of borrowings (RM133.65 million) and working capital (RM57.85 million). Paramount’s total borrowings stand at RM1.09 billion.

The maiden power profit can be recorded as soon as in Mar when first unit start selling electricity, only just about month ahead to see jaks major turnaround from construction stock to Power stock with 25 year steady concession

Already in the midst of recovery

Recovering

bought back Jtiasa at 81-82sen

bought back rsawit at 30sen

Add more BAT at 11.10

It is typical selling pattern adopted by foreign fund, as once fund decide to pull out from particular stock, it will continue selloff aggressively for few day to clear all their stock holding.

BAT is big cap stock, hold by many institutional fund. While some fund may exit and create short term free fall, once ease off, many other institutional fund will cover back albeit slowly.

Bear in mind, any transaction need both seller and buyer. Seller clear stock till lowest level, buyer accumulate till lowest level, dividend yield turn to 10% now. Once seller clear off, no more stock to press any further, buyer especially institutional fund will marked up price to enjoy higher stock gain.

After heavy selloff with volume for consecutive few day, BAT finally have ease off selling pressure indicating seller have clear stocks, no more volume to press down further.

Such oversold condition will create rebound back momentum. Once, stock rebounding, many will follow fast to cover their short position, creating higher rebound momentum

Interest rate cut ---> 12 month deposit rate cut to below 3% vs. 10% NET dividend return offer by BAT,

simple option to select, yet many still no awaken.....

Those naysayer keep on pressure on BAT, wanted < RM 10 need to wait sideline, perhaps for another decade.

The oversold condition may also prompted other to cover back short position

Impossible to find BAT at current depress price that offer 10% dividend income now, it could be lowest point now awaiting for rebound soon.

BNM cut interest, bank deposit rate cut < 3% vs. BAT offer NET dividend income 10%.

Dear DK66

My worrisome already clear after studied thoroughly and re-study again all other article and posting about jaks power plant. The potential profit with many proof and comparison to justified.

The opportunity of etting so many up to date news about power plant latest progression and 1 month profit contribution to be recorded in Q1 financial result indeed restore greatest confident. I wish to thanks again for your kind explanation and clarification... Hat off to you.

added more jaks-wb at 1.18

Wow....TP RM 4.97-7.10 depending on admin cost. These TP is fair if judging from EPS range 50-70sen, valuation at PE 10x. The EPS should start progressively deliverable in Q1 2020 when for first unit start commecial operation in Mar.

The margin of safety is too attractive if compared to current open market price.

2020年是越南海阳项目实现“双机投产”的“全力冲刺年”，是由基建期进入运营期的“提速换档年”，既要保投产发电、保稳定运行，又要保营业收入、保投资收益.......Thumb up

DK66

Noted, turbine testing should be the last mile before the start commecial operation and officially generate electricity for profit. With such speedy progression, the unit should be able operation in Mac, and jaks should be able to record its maiden power profit for 1 month in Q1 result.

selling pressure easing, time to rebound

Dear DK66

After steam blow completed 2 day ago,

当地时间2020年1月20日1时，公司总承包的越南海阳2×60万千瓦燃煤电厂工程1号机组1号锅炉吹管工作圆满完成。

　　越南海阳项目部组织各参建单位紧密配合，制定了吹管前安全措施和吹管过程中的安全监督措施，对整个准备工作严格把控，并在吹管过程中对临吹系统、四大管道系统、锅炉膨胀系统等进行了全面检查，为1号机组1号锅炉吹管工作提供了坚实的保障。

Now next is steam turbine rolling to 3000 rpm. To test run turbine, Jaks coal power need to now start fire coal to generate heat right? there will be electricity generate in these turbine testing right.

If remember correctly, electricity generated during testing period will connect to the grid and sell electricity for profit right?

DK66

Many thanks for your previous explanation. I am glad can return back to jaks and jak-WB yesterday. After done study more thoroughly on all your earlier article and continuous posting on power plant update on progress. These valuable information on jaks power plant is far more transparent and clear if compared to limited information can gather in YTLP..... Hats off to you.

Glo Malaysia launched the Starter Kit in 7-11, mynews and Shell Stations and exclusive studio glo stores in Klang Valley

https://www.youtube.com/watch?v=ogbLT5iErcA

bought back jaks at 1.40-1.43

bought back jaks-WB at 1.19- 1.22

add all BAT at 12.06

bought BAT at 12.08

sold rsawit at 36sen

With clarification from Indian minister of commerce and reinstate by our Minister of primary industry Kok dismissed reports that India has called for a boycott of Malaysian palm oil. She said it was learned from several discussions that Indian palm oil buyers wanted Malaysia to increase its export of crude palm oil and reduce the export of refined palm oil

YTL Communications deploys Gigawire Terragraph technology aiding Penang's Smart State initiative

http://www.ytlcommunity.com/commnews/shownews.asp?newsid=124&category=top

Wessex Water's bustling Marketplace, three months on

https://wwtonline.co.uk/features/wessex-waters-bustling-marketplace-three-months-on

https://www.thestar.com.my/business/business-news/2020/01/17/crude-palm-oil-prices-expected-to-stay-firm

The profitability of power plant is determine by internal rate return on total cost of investment.

In Jordan shale oil power plant, the total cost is USD 2.1 billion (RM 8.6 billion), the internal rate return is 15% + additional IRR at least 5% from the plant come together with right to own oil shale mining operation that accompanies the plant. These is additional lucrative source of income + 30 year concession period, with further option to extend another 10year to up 40 year concession.

With such long concession agreement 40 year, and payback time is only at such shorter time of 11 year settle off ALL cost USD 2.1 billion. YTLP therefore have option to refinance these exiting 15 loan tenure to matched entire 40 year concession, monetize much higher profit

.....“The financing is only for 15 years. This includes about four years for construction. That means this project will be able to pay off the debt in about 11 years. After that, everything will be free cash flow,” explains Yeoh.

YTL Power will, in turn, look for ways to unlock value for shareholders using the predictable cash flow from Attarat — perhaps via debt refinancing or by monetising equity, he says...

Another strong point toward how lucrative profitability are the tenure of borrowing. In YTLp, the tenure borrowing only 15year including 4 year construction period. With 30 year concession period, it only need 11 year to fully repay ALL the cost of funding on both equity (25% cost of investment funding) and bank borrowing (75% cost of investment funding) and enjoy all free cash for remaining 19 year.

“The financing is only for 15 years. This includes about four years for construction. That means this project will be able to pay off the debt in about 11 years. After that, everything will be free cash flow,” explains Yeoh.

YTL Power will, in turn, look for ways to unlock value for shareholders using the predictable cash flow from Attarat — perhaps via debt refinancing or by monetising equity, he says.....

https://www.theedgemarkets.com/article/jordan-ipp-distant-bright-spot-...

Let calculate how profitability of YTLP in jordan based on 11 year profit generated from shale oil power plant to repay back all cost of investment USD 2.1 billion (excluding bank interest charge).

Jordan need to generate cash flow at least USD 200m per year to repay back ALL cost of investment funding USD 2.1 billion, it is whopping of the USD 200m profit or RM 820m per year. YTLP 45% stake translate into RM 370m per year or additional EPS = 4.6sen on top exiting annual business EPS 6sen. Therefore, YTLP forward EPS should record about 11sen, valuation now at historical low end 7x + dividend yield 6.3%.

ok

Dear DK66

Jaks Power plant cost USD 1.87 billion (RM 7.5 billion), funded by USD 1.402 billion and equity portion USD 0.468 billion or RM 1.87 billion. Jaks 30% equity stake RM 560m funded also through bank borrowing.

Therefore jaks total capital investment is RM 560m, you may said jaks 30% stake able to profit RM 280m-RM 380m a year for next 25 year. Thus, jaks return of investment is massive return 50% - 68%...... it only need jaks to take 2 year to get back all investment and enjoy next 23 year free profit.

The problem is how is it possible management guidance for internal rate return 12% become 50-68% for first 2 year investment and thereafter 100% ROI for next 23 year ?

https://www.thestar.com.my/business/business-news/2016/03/29/jaks-eyes-irr-of-12-for-rm7bil-vietnam-plant

DK66
Relationships Between the Internal Rate of Return (IRR), Cost of Capital, and Net Present Value (NPV). The IRR assume all project is funded by cash, but in reality, all IPP project are funded by bank borrowing including 25% equity portion. Therefore, the cost of capital need to take into account to arrive NET return.

https://maaw.info/IRRNPVandCostofCapital.htm

The profitability of power plant is DETERMINE by internal rate return on total cost of investment.

Even Jaks power plant is 1200MW vs YTLP Jordan power plant 470MW. The cost to build jaks is USD 1.87 billion vs cost to build YTLP USD 2.1 billion.

The internal rate return 12% for jaks is based on total cost of investment USD 1.87 billion. The internal rate 15% + 5% shale oil mining is based total cost of investment USD 2.1 billion.

The profitability is NOT based on power plant capacity 1200 MW vs 470MW, as all these power plant have 25 year concession and 30 year concession receptively.

The profitability of power plant is determine by internal rate return on total cost of investment.

Even Jaks power plant is 1200MW vs YTLP Jordan power plant 470MW. The cost to build jaks is USD 1.87 billion vs cost to build YTLP USD 2.1 billion.

The internal rate return 12% for jaks is based on total cost of investment USD 1.87 billion. The internal rate 15% + 5% shale oil mining is based total cost of investment USD 2.1 billion.

The profitability is NOT based on power plant capacity 1200 MW vs 470MW, as all these power plant have 25 year concession and 30 year concession receptively.