add more RS at 43sen

bought back RS at 42.5sen

sold back Bpuri at 9.5sen

sold back RS at 44sen

Kyy comment......Jaks is basically a construction contractor and a property developer. A few years ago, the CEO Andy Ang in joint venture with Jaks to undertake the development of Star Media’s 6 acres of the land in Petaling Jaya, KL. which has planning permission for 2 office tower blocks in front and 3 high rise condominium blocks at the back. All these 5 blocks of high rise buildings are sitting on a 4 storey under round car park.

Since the JV did not pay for the land, it has agreed to give one of the 2 office blocks and Rm 50 million performance bank guarantee to Star Media. Up to date, Andy Ang and Jaks JV could not complete the development project and the High Court has passed judgement for in favour of Star to forfeit the Rm 50 million performance guarantee. Moreover, Star and many other buyers are suing Jaks for the completion delay.

Under the circumstances, I suspect Andy Ang has sold his share in the JV to Jaks which he did not require to call an EGM to seek shareholders’ approval. I also suspect, a large portion of this huge development are not sold.


My 2 sen reply.....Jaks 51%.the pacific star, already paid performance bond RM 50m or effective RM 25.5m for Jaks 51%. These is min reason for Jaks reported loss in previous quarter result. Due to lack of financial strength after paid up these 25.5m to the star, Jaks have subsequent call up right for warrant 1 for 2 at 25sen. Since these incident, Jaks share price have retrieved, down to below RM 1.20....kyy have started facing margin call from the banker, need to sold down his stake to meet margin call, as since kyy is major shareholder, trim down stake have to report to bursa and announcement appear to retail follower. These have create viscous cycle, many follow kyy to cut down stake, share price keep coming down, till broke below RM 1.00 psychological level. Jaks share price did rebound back for a while to above RM 1.00, but failed to sustain long, Jaks share price again down to below 90sen. These have cause many loss confident including kyy, prompt him to cut down entire balance stake in Jaks, force selling Jaks share price to below 70sen. In the end, kyy sold off KL Jaks stake and incur RM 70m loss. These also resulted Jaks fail to meet its targeted fund rising from 25sen new warrant issue, undersubscribe about 40%. The undersubscribe warrant announcement have further weight down on Jaks share price sentiment to below 50sen.

The delay in handover the pacific star to purchaser is also main culprit Jaks report reducing profit as Jaks need to make provision on late ascertain damage (LAD) to the purchaser. With LAD provided, purchaser get their compensation in accord to the delay time. The LAD provision amounted to average -RM9m every quarter have erode profit recognition from construction power plant, resulted Jaks reported lower EPS.

But, all these have ended in month Dec 2019. Jaks have through bursa announcement reported block in pacific star have fully completed, now pending insurance CCC. Therefore, from 2020 onward, Jaks needless to make any further LAD to the purchaser.

As the pacific star is JV between 51% own by Jaks and 49% own by CEO Andy, the development cost are consolidate in Jaks financial books. The inter-company borrowing between Jaks and CEO Andy is now settle through Andy 49% entitlement in Pacific star unit in office tower and car park. In short, Jaks get back its borrowing in JV company via transfer Andy ownership in pacific star to Jaks. Therefore, Jaks will get full ownership in entire pacific star mall car park and additional office tower unit.

RemRk: the entire pacific star consist of 2 office block, one assign for the star as landowner, another office block is retain for investment. The 3 residence block have more than 90% sold. The mall and car park are retain for investment purpose.

Kyy comment......Investors should look at how the Indian Government distribution system in the delaying the actual completion Mudajaya’s coal power plant in India.

My 2 sen reply.....Indian is largest democratic in the world. Indian general election need to take 3 month for completion and courting poll for few week. Indian have clear divided power between central govern power and local govern power, gap divided citizen and state wealth. The BOT signed by Indian central govern and concession can be no honor by local or central government themselves, the system democracy in Indian is main culprit for inefficiency and lack of compliance on continually in policy.

Mudajaya failure in Indian cannot use as excuse to replicate in Jaks operate in Vietnam. Bear in mind, Vietnam’s is communist rule, one party system, therefore have policy continually. The success in Vietnam’s is further supported by other power plant player which already operate for 3 year with similar BOT alike Jaks, profit recorded now is just too good to be true.

Kyy comment.....As you know, the power plant construction is not completed yet and it has not reported any profit from selling electricity. Unfortunately, Mr Ooi Teik Bee has already circulated his projected profit recommendation to all his subscribers and followers. You should not buy Jaks now. You should only start to buy when it can show increasing profit for 2 consecutive quarters from its power generation in Vietnam.

Even when the 2 X 600 MW coal power plant is completed, all the other ancillary construction works might not be completed to use up all the 1,200 MW electricity. All of a sudden, the Vietnamese distribution system might not be able to cope with the 1,200 MW of electricity supply.


My 2sen reply.....power plant have reach various milestone and have achieved overall completion rate at 82% up to end sept 2019. The milestone at each stage is very important to verify the plant meet stringent compliance, ensure plant integrity when start commercial operation, therefore reduce future operation risk. The first unit of 600MW should now reach final completion and at various testing stage preparing for trial generation electricity to the grid soon. Therefore, the connection from the power plant to the distribution system already in place in these trial period before commercial operation by April 2020. Bear in mind, Vietnam government is demanding power from new plant to be as fast as possible to guarantee power supply to meet huge foreign direct investment.

Mr OTB is right minded to invest in Jaks at tail end of power plant construction period, about 6 month ahead before Jaks first unit 600 MW power profit recorded. Although kyy comment for 2 consecutive increasing profit before buy in is right too, but it may only workable for stock with already have exiting business and turnaround. It may not work for Jaks as the power plant profit is NEW source of profit and these profit figure is strongly backed by similar power plant operate in Vietnam’s as show by DK66 with black and white figure extracted from their financial report.

Agreed, the timing is important if wanna to capitalize on power plant profit. The 4 year construction period have its risk, kyy opt to invest massively until become largest Jaks shareholder on second to 3 rd construction period, but failed to hold on his confident on Jaks, opt to cut loss and sold down his stake from 27% to nil, his action also trigger Jaks share price tumble and marked down further by loss confident by his follower.......Masterminded sifu like DK66 is wise and have fate on Jaks, long term holding throughout entire 4 year construction period; masterminded sifu like OTB even wiser, opt best margin of safety to invest Jaks at its tail end of construction, reduce construction risk, to shorter harvest time on upcoming power plant profit.

With power plant at stage 82% completion up to end sept, the progress for first unit 600MW total completion is expect to achieve in early 2020, and will fire up first to generate electricity by April. The final stage of completion for second unit should be achieved earlier than expected 6 month later to fire up another 600MW. Therefore, maiden first unit 600MW power recognition can be recorded as soon as Q2 2020.

Jaks 51% own evolve mall should achieved operation break even as the occupancy rate have increase to 85%. The pacific star project also already fully completed in Dec 2019, now pending insurance CCC. Therefore, Jaks local business at least will not become dragging factor to Jaks future earning starting 2020.

last year If remember correctly, kyy start sold his stake at level below RM 1.20, but later decided to continue sold down Jaks up to level below 70sen, the average selling price about 90sen/ share and incur total loss RM 70m.

Let’s assume kyy stay invested in Jaks until now and also subscribe his entitlement jaks warrant 1 for 2 at 25sen, kyy should now very comfortable on paper gain based on Jaks RM 1.27 + Jaks-wb at RM 1.05, a massive gain of 300%. Therefore, kyy wealth not only able to retain RM 70m, but also gain multimillion on Jaks-Wb. Nonetheless, Kyy opt to sold off Jaks and incur massive loss RM 70m, but lucky, able to recoup back mostly through dayang.

bought Rsawit at 43sen

With such detail analysis share by masterminded sifu like OTB, DK66 and pjseow, confident will be back on Jaks. Thanks all

There are 3 stock having NEW power plant ready operation in 2020.

1. MFCB - power plant is 240-260 MW, hydro power (80% own)
The effective ownership is 200 MW to be share by 438m shareholder with market capitalization RM 2234m. Each shareholder value at 5.1m

Therefore, the future 1 MW power profit to be share by each shareholder give rise value about RM 39.2m


2. YTL Power -Power plant is 470-554 MW, shale oil fuel power (45% own)
The effective ownership is 230 MW to be share by 8158m shareholder with market capitalization RM 6283m. Each shareholder value at 1.3m

Therefore, the future 1 MW power profit value to be share by each shareholder value at RM 176.9m


3. Jaks - power plant is 1200 MW, coal fire power (30% own + 10% optional)
The effective ownership is 360MW (480MW if exercise 10% option) to be share by 643m shareholder with market capitalization RM 817m. Each shareholder value at 1.27m

Therefore, the future 1 MW power profit value to be by each shareholder value at RM 283m


In summary, for each 1MW new power profit, each Jaks shareholder will get highest value RM 283m; follow by YTLP second value at RM 176.9m, and last is MFCB shareholder at RM 39.2m

There are 3 stock having NEW power plant ready operation in 2020.

1. MFCB - power plant is 240-260 MW, hydro power (100% own)
2. YTL Power -Power plant is 470-554 MW, shale oil fuel power (45% own)
3. Jaks - power plant is 1200 MW, coal fire power (30% own + 10% optional)

bought back uzma at 97.5sen

add more jaks-wb at 1.04-1.05

add more at 1.42

bought vstec at 1.48

sold back jtiasa at 1.05

sold back uzma at 1.02

bought bpuri at 8.5sen

Add more hohup at 51sen

bought back uzma at 98.5-99sen

bought hibiscus at 96sen

bought back jtiasa at 96.5sen

The first power earning only able to report in Nov 2020 to account for full quarter Q3 for first unit electricity profit. The waiting period is almost 1 year from now

Trend reversal

DK66 calculate Jaks every quarter on its EPC work revenue and sum up total accumulated revenue to arrive progress billing now is up to 74% right?

Hi DK66, both public bank and affin analyst in their research note said that jaks still only have less than 20% of the RM1.9bn EPCC contract to be recognized. The progress up to last Q3 is at 82% therefore outstanding billing is about 18% or RM 342m right? Assuming profit margin maintain at 22%, the balance pretax profit should be 75m, the net profit is 56m to be staggering recognized over next few quarter.

Sold back at 93.5sen

With tail end of construction power plant and absent of new contract secure, Jaks likely to post significant lower profit in next 3 consecutive financial result, Q4 2019, Q1 2020 and Q2 2020.

Jaks earning will rebound back in Q3 2020 to account for first unit power profit operation in May 2020 and become significant boost up after Q12021 once second unit power profit recorded 6 month later.

Next year onward, Jaks need to seek change in sector business. Reclassified from construction stock to utilities stock and perhaps change the name too from Jaks resource to Jaks Power to reinforce and also to reflect almost all its earning derive from Vietnam power

With now fully completed Pacific star project, jaks will now able to alleviate burden on further LAD charge amounted to average about -RM 9m per quarter, with was the main dragging factor on jaks earning.

In the Jaks last Q3 result, management have highlight that Pacific star, which is the jaks sole property development have been delayed resuling i the expensing of LAD charges (The total LAD charge in 2017 = -RM 23.5m; 2018 = -RM 34.2m; 2019, LAD up to Q3 -RM 27.5m). However, the Jaks management have ensure will work to complete the property development as soon as possible. With Jaks today announcement, the property development is now full completed and now pending CCC.

Jaks is expect to gain RM 1.4m, and settle inter company loan via acquisition newly completed office space for RM 17.9m.

Jaks is also expect to gain RM 0.343m, and settle inter company loan via acquisition newly completed service apartment for RM 19.2m.

With these 2 settlement inter company loan, jaks is expect to free up interest bearing loan to investment grade asset like office and service apartment for recurring rental which is in high demand in the surrounding area PJ 17.

1. Easy accessible to major Expressways such as Federal Highway, Sprint expressway, LDP, Kerinchi Link and NKVE.

2. Ready captive market with a growing Population of over 2 million
Star Tower @ Pacific Star with 2,000 to 3,000 employees

3. Surrounded by more than 10 universities / colleges (i.e. University of Malaya, Mahsa University and Stamford College etc)

4. Confirmed Urban Renewal plan imply to Section 13 PJ; transforming Section 13 into commercial and residential hub with sky-bridge connecting most of the buildings in Section 13.

5. Medical Centres – UM, Columbia Hospital, Assunta Hospital and Tun Hussien Onn Eyes Specialist.

6. More than 10 Government and International Schools (ie SRJK (C) Puay Chai, SRJK (C) Damansara, SMK Damansara Utama, Beaconhouse Sri Inai Private Primary & Secondary School etc)

7. Public transportation conveniences – 4KM to Asia Jaya LRT Station, 2.6KM to Phileo Damansara MRT Station and Free Shuttle service


The acquisition also anchor that Pacific start already FULLY completed now, pending to CCC.

On the other hand, another part of pacific star. the mall and car park already secure CCC in advance and now under tenant renovation, ready to open soon.

CREC - ekovest to jointly develop HSR....

KUALA LUMPUR: Ekovest Bhd, the builder controlled by Tan Sri Lim Kang Hoo, has team up with a unit of China Railway Group Ltd (CREC) to bid for projects in Malaysia and around the region.

The collaboration, Ekovest told Bursa Malaysia today, is to jointly explore new ventures and projects, including opportunities in the infrastructure, property development and construction sectors.

The collaboration agreement between Ekovest and CREC's wholly owned China Railway Dongfang Group Sdn Bhd was announced a day after Lim secured part financing from CIMB Bank Bhd for the development of Bandar Malaysia...

https://www.thestar.com.my/business/business-news/2019/11/26/ekovest-teams-up-crec-to-pursue-new-projects

Revived Bandar Malaysia project to include an HSR station, says Dr M

PUTRAJAYA: The revived Bandar Malaysia project would house a Kuala Lumpur-Singapore High-Speed Rail (HSR) station, says Tun Dr Mahathir Mohamad.

The Prime Minister said although Malaysia and Singapore have yet to finalise details on the stalled HSR project, it would definitely have a stop in Bandar Malaysia.

“We have not decided on the HSR project itself, but yes, it (Bandar Malaysia) will have an HSR station, ” said Dr Mahathir at a press conference after the signing of the Bandar Malaysia agreement at the Putrajaya International Convention Centre here on Tuesday (Dec 17).....

https://www.thestar.com.my/news/nation/2019/12/17/revived-bandar-malaysia-project-to-include-an-hsr-station-says-dr-m?itm_source=parsely-api

https://www.sinchew.com.my/content/content_2163484.html

Putrajaya, IWH-CREC sign deal to officially revive Bandar Malaysia

https://www.theedgemarkets.com/article/putrajaya-iwhcrec-sign-deal-officially-revive-bandar-malaysia

Beware Ekovest already ahead team up with CREC to develop Bandar Malaysia. Therefore, ekovest will be appointed to be master developer for Bandar Malaysia

https://www.thestar.com.my/business/business-news/2019/11/26/ekovest-teams-up-crec-to-pursue-new-projects

bought back jtiasa at 88-89sen

sold back jtiasa at 91-91.5sen

Pound strengthening

https://www.thestar.com.my/business/business-news/2019/12/16/the-pound-is-only-heading-in-one-direction

add more jtiasa at 78-78.5sen

Confirm, Ekovest already ahead team up with CREC to develop Bandar Malaysia

https://www.thestar.com.my/business/business-news/2019/11/26/ekovest-teams-up-crec-to-pursue-new-projects

today total volume 323m transacted is 12% of entire ekovest share volume

add more ekovest at 91sen

The prime minister said it would give him a mandate to "get Brexit done" and take the UK out of the EU next month.

绿盛世国际总裁兼首席执行员拿督张良成表示，2019财政年高档房产销售受英国脱欧因素影响，仅录得11亿2300万令吉销售，但公开市场销售环节已开始出现复苏迹象，其中9月伦敦内城区房价指数从3月的低点反弹2.6%。

“除了高档房产市场销售复苏，我们的中价产品也持续带来良好的表现，其中我们定价每平方英尺500至800英镑的产品销售大增67%。”

他补充，集团的先建后租（BtR）业务也表现强劲，当中去年脱售于北美退休基金Invesco实业的2个项目已开始带来盈利贡献，现也接获多方洽询，但一切得待英国脱欧更为明朗才能成事。

他表示，若英国大选后顺利脱欧，将有助公开销售市场复苏，悬峙国会是市场不乐见的结果，但先建后租的租金趋势不受政治因素影响，有望持续呈涨势发展。

此外，张良成说，澳洲悉尼和墨尔本房市也开始复苏，交易和价格在过去数月开始有所增加，这将有助推动预定明年推介的Macquarie Park发展计划。

两年60亿销售有望达标

“随著市场前景改善，董事部有信心达到两年60亿令吉销售目标。管理层将继续追逐大规模的先建后租交易来达成销售目标，同时努力在明年传递Wardian、WestVillage、Yarra One等房产计划。在显著的50亿令吉未入账销售扶持下，我们预期集团新财政年将延续现有的盈利增长动能。”

至于进军其他英国城市计划，张良成坦言，集团有意进军曼彻斯特和伯明翰等城市，但伦敦仍是主要据点所在

https://www.thestar.com.my/news/world/2019/12/13/uk-elections-boris-it-is-tories-get-a-majority

Pound sterling strengthen to RM 5.58, good for EWI