Jaks Partner in Vietnam Power Plant 1200 MW EPCC RM 8.7 billion, CPECC ( 70 % ) background:

A.) RENEWABLE ENERGY PROJECTS
 
1. 2,200 Renewable energy projects
2. 70,000MW Capacity of renewable energy
3. 25% Percentage of total renewable energy capacity in China
4. 216 Provincial or higher-level awards
 

B.) HYDROPOWER PROJECTS
 
1. 25 Hydropower projects
2. 4,500MW Capacity of hydropower energy
3. 35 Provincial or higher-level awards


C.) FOSSIL FUEL POWER PROJECTS
 
1. 1,000  Fossil fuel power projects
2. 290,000MW Capacity of fossil fuel power
3. 75% Percentage of total fossil fuel power capacity in China
4. 725 Provincial or higher-level awards


D.) NUCLEAR POWER PROJECTS
 
1. 42 Nuclear power project
2. 23,000MW Capacity of nuclear power
3. 91% Percentage of total nuclear power capacity in China
4. 14 Provincial or higher-level awards

Oh the Moat of Jaks is the Vietnam JV Power Plant 1200 MW EPCC RM 8.7 billion where as Toyo Ink is unlucky it’s Vietnam Power Plant project contract awarded on 2020 is terminated on 2024 due to Financial arrangements.

And also Solar RE .

—

There are five types of moats:
* Low-cost production;
* High switching costs;
* Network effects;
* Intangible assets;
* Efficient scale.

Why I am recommending Jaks .. “ Buy Low Sell High “ :


1.) Jaks : Price RM 0.14 ( Lowest = RM 0.12 )

NTA : 0.59
Current Ratio 1.04
Debt-Equity (DE) Ratio 0.64
FCF Yield 0.76 %



2.) Samaiden : Price RM 1.09

NTA : 0.32
Current Ratio 2.37
Debt-Equity (DE) Ratio 0.73
FCF Yield -5.2 %


3.) Solarvest : RM 1.51

NTA : 0.40
Current Ratio 0.27
Debt-Equity (DE) Ratio 1.23
FCF Yield -1.39 %

And Jaks has 2 Cash Cow Projects after being successfully diversified into Power Plant n Solar RE industry :

1.) Vietnam JV Power Plant 1200 MW EPCC RM 8.7 Billion, is COD on January 2021 with 25 years BOT agreement.

2.) LSS4 50 MW Solar Project in Penang is COD on August 2023 , with 25 years TNB PPA agreement ( increased from 21 years) .

3.) On going project : CGPP 30 MW is awarded on August 2023 , construction Shl be started by 4Q 2024 , COD by 4Q2025 .

800 MW CGPP winners can choose their own customer / company.. n sell RE electricity cross border… ( not like LSS4 the only Off- Taker is TNB ) , but use TNB power grid as Third Party Access , Mulling charges is announced on August 2024 , CRESS details is to be announced by September 2024 .( Standby charges or storage charges is not announced yet … as consistent n non consistent supply shl affect the Power Grid loading factor .)

One of the reasons why Jaks signed MOU with a China company to explore the 3 types BESS opportunities.. Battery Energy Storage System.

And

> Jaks Gearing Ratio is reduced from FYE2015 : 0.80 X to 0.303 X on QR ended June 2024 .

> Jaks Non Current Asset is keep increasing:

a.) Investment in Joint Venture :

March 2016 = 128,297,000 …> June 2024 = 943 ,960,000

b.) PPE : March 2016 = 19,269,000….> June 2024 = 291,602,000 .


> Accumulated Profit :
March 2016 = 55,453,000 … > June 2024 = 369,116,000 .


And Tendering 200 MW , LSS5 2000 MW Solar Project as posted earlier. ( with Intention to tender up to 500 MW ) .

Hoho I learned from ethical Sifu 3iii on his posts during debated together against Calvin in Netx on 2020 for 15 months n in TSH on 2024 :

As I am always posted :

Remember Do 3 Own : Own Homework, Own Analysis and Own DecisionS as only you know your Risk level and Holding power .



DecisionS: is changed Upon new information, new facts n figures.

>

What is the moat of a stock?

I had googled to further understand it ..

The be simplified n bottom line :

> The best way to determine whether or not a company has a moat is to measure its return on invested capital (ROIC).

Eg : Nestle Malaysia:

ROE (ROIC: 59.2) 85.93 %
Dividend Per Share (DPS) 268.0 sen
Dividend Yield (DY) 2.64 %

Those whom bought 15 years ago shl be benefited the most .

But do you think is a Best Buy now ???

> The latest News on Nestle :

What went wrong for Nestle CEO Mark Schneider
By Reuters
August 27, 2024 @ 8:05am


LONDON: Mark Schneider, Nestle's recently ousted CEO, steered the world's biggest food maker through the COVID-19 pandemic, grew margins despite a subsequent supply chain crunch, and pulled off a historic reorganisation.
So when did he lose the board's faith?

While Nestle declined to comment on the nature of his departure when announcing it on Thursday, and Schneider did not respond to a request to do so, three sources told Reuters on Friday that the executive had been axed.

One source said the decision was reached after Nestle's board became increasingly concerned about weak sales growth. They also cited worries about slowing product development, with new and revamped products taking longer to be devised and rolled out.

On Dutch Lady ( Malaysia) :

ROE (ROIC: 19.52) 19.52 %

—/

Ethical Sifu 3iii recently recommended Kimloong compared to TSH :

Current Ratio 3.44
Debt-Equity (DE) Ratio 0.32
FCF Yield 8.19 %

ROE (ROIC: 16.4) 17.08 %
Dividend Per Share (DPS) 13.0 sen
Dividend Yield (DY) 5.46 %

Hoho interesting lo to compare latest Financial Ratios of these 3 companies:

1.) Jaks

NTA : 0.59
Current Ratio 1.04
Debt-Equity (DE) Ratio 0.64
FCF Yield 0.76 %



2.) Samaiden

NTA : 0.32
Current Ratio 2.37
Debt-Equity (DE) Ratio 0.73
FCF Yield -5.2 %


3.) Solarvest

NTA : 0.40
Current Ratio 0.27
Debt-Equity (DE) Ratio 1.23
FCF Yield -1.39 %

No wander Solarvest oredi issued PP for CGPP project :

Potential Funding May Be Raised By Placement Exercise For Solarvest’s LSS5 Assets
By K. Harinderan -
June 4, 2024

Another private placement exercise may be in store for Solarvest Holdings (SLVEST) to  fund potential LSS5 assets.
Kenanga Investment Bank (Kenanga) today (June 4) said, while being mindful about the  potential earnings dilution, recurring incomes from solar assets  could strengthen its earnings visibility and stability.
Meanwhile, it  guided for PV system EPCC jobs under Corporate Green Power  Programme (CGPP) to hit the market this month.

Kenanga maintains their forecasts, TP of RM1.91 and OUTPERFORM rating for SLVEST.

In April 2024, Solarvest announced a Proposed Private Placement with expected gross proceeds of up to RM56. 7 million. The bulk of the proceeds, RM40. 5 million, are earmarked for capital expenditure on CGPP and C&I rooftop solar projects.30 May 2024

LSS5 2000 MW Solar Tender:


Hoho interesting lo :

1.) Saimaden :100 MW tender .

2.) Jaks : 200 MW tender

3.) Solarvest : 500MW initiatives.

4.) Gading Kencana

Hoho interesting lo , MIDF Research an article on LSS4 with cost RM 2.0 million to RM 2.5 million per 1 MW .. with tender tariff as low as RM 0.14 per kWh .

But it’s research stress on Solar Panel with efficiency 16.7 factor .


Update relevant info :

The LSS4 programme saw 30 winning bidders in total, comprising 10 projects of 50mw each, and 20 projects of between 10mw and 29.99mw. According to the EC website, only 11% out of the 823mw awarded has been completed as at 4Q2023.

An industry source says a number of companies had dropped out from the LSS4 programme, while many have missed the end-2023 COD.

👉No wander LSS5 2000 MW tender RFP dateline is brought forward to 25/7/2024 from December 2024 .

>>>

👉👉👉(TNB) was raised to 21.8 sen per kilowatt hour (kwh) effective August 2023 .

Meanwhile, the system’s marginal price under the New Enhanced Dispatch Arrangement (Neda) wholesale market is averaging about 25 sen per kwh as at June 2023, which is “a decently large premium to LSS4 winning bids of 18 to 20 sen per /kwh for 30-50MW packages,” .


Illustration with TNB 21.8 sen per kWh .

Bids 18 Sen per kWh : Profit 21.11 %

Bids 19 Sen per kWh : Profit 14.74 %

Bid 20 Sen per kWh : Profit 9.0 %

Jaks 50MW LSS4 50MW project with cost RM 200 million , ie RM 4.0 million per 1MW ) in Penang is among the 1st which completed n COD on August 2023 .

3.) QR ended March 2024 :

👉Revenue: 5.3 Million , Profit RM 0.96 Million … 18.11 %


4.) QR ended June 2024 :

Revenue : 4.8 million, Profit RM 0.4 million.. 8.33 %


👉Note 1 : Revenue shl be vary due to Rainfall season

Hoho the gimmick on how Jaks finance its 30 % share capital investment, RM 600 million:

1.) Cash RM 200 million

2.) Profit from EPC2 construction contract RM 400 million.

So far Profit from 30% associate Joint Venture Vietnam Power Plant 1200 MW company from October 2016 to June 2024 :

> 400 million + 597 million = RM 997 million.

Jaks

1.) Vietnam Power Plant Share of Profit n Dividends :


2020 : RM 3.8 million ( 1 Power Plant is COD on Nov 2020 )


2021 : RM 140.7 million ( The 2nd Power Plant is COD on January 2021 ) .


2022 : RM 156.2 million , Dividend RM 70.0 million


2023 : 1QR = RM 28.326 M , 2QR = RM 32.312 M , 3QR = RM 35.862 M , 4QR = RM 34.503 M plus Dividend RM 27.386 M

2023 : RM 131 million , Dividend RM 27.385 million


Total Share of Profit = RM 431.703 Million

Total Dividend = RM 97.386 Million

Total = RM 529.089 Million

> Share of Profit in QR ended March 2024 =
RM 32.384 million

>> Total = RM 561.463 million


> Share of Profit in QR ended June 2024 = Rm 21.33 million

Dividend = RM 14.21 million

👉Grand Total = RM 597 million.👍


Jaks 30 % share in Vietnam Power Plant Joint Venture invested ard RM 600 Million.
( RM 400 million is from the Profit of Construction of the Vietnam Power Plant, EPC2.)

Initially PayBack 8 to 9 years ..

Referring to the Grand Total , PayBack period is by 2024 .. ie : from 2021 to 2024 ~~ 4 years ..

👉From Vietnam Power Plant 1200 MW EPCC RM 8.7 Billion started on October 2016 ,
Payback period is 8 years.


按照购电协议，电力售价将随原料价格波动。意味着业务盈利贡献获得保证。Jaks管理层曾透露内部回酬IRR介于12%，PAYBACK PERIOD为8至9年

Hoho 200 MW to 500 MW , the gimmick is on the Solar Panel :

“a 1 MW solar power plant with crystalline panels (about 18% efficiency) will require about 4 acres, while the same plant with thin film technology (12% efficiency) will require about 6 acres.

Hoho interesting le , YTLpower acquired Land from Boustead Plantations Berhad 1640 acres for its Kulai 500 MW Green DC Park .

Jaks lease TDM land 1730 acres for tendering 200 MW LSS5 2000 MW Solar project… 200 MW to 500 MW !!!

Partially Repost :

Key points on finance LSS4 50 MW Project .. RM 220 million:

1.) Time constraints:

👉👉 According to Ng Kit Ho, the senior vice-president of loan markets and debt markets at AmInvestment Bank, the primary challenge faced by the bank in executing the financing facility was the time constraint.


“The time between execution of the power purchase agreement and financials was extremely tight (four months) and was over the festive period,” Ng told ISFI.


2.) JAKS Solar Nibong Tebal (JAKS Solar), a wholly-owned subsidiary of JAKS Resources, obtained a RM112.5 million (US$26.5 million) financing facility from AmBank Islamic in March 2022 as part of a multilateral financing facility worth RM220 million (US$51.82 million).


AmBank Islamic provided the Islamic portion of the facilities while United Overseas Bank (UOB) provided conventional facilities worth RM125 million (US$29.44 million).


3.) According to Albar & Partners, which acted as the legal counsel on behalf of the financiers in this multilateral financing facility, the guarantees required in the facility also posed a challenge.


“Tenaga Nasional, as the off-taker of the power project, would only accept one single performance guarantee for the performance of the borrower under this power project, therefore AmBank Islamic and UOB were required to enter into a fronting arrangement for AmBank Islamic to issue a bank guarantee to UOB as a fronting guarantor, who shall then issue its own conventional bank guarantee to TNB as the performance bond of the power project on behalf of the borrower,” the law firm shared.

4.) 👉👉👉 While sustainability-linked financing is steadily increasing in popularity as a financing cost-saving mechanism ( interest is Lower ) , Ng shared that JAKS Solar had considered sustainability-linked financing but ultimately decided against it.

Hoho an illustration n feasibility study on how Jaks going to finance its 51% share in LSS5 tendering 200 MW :

LSS5 2000 MW EPCC RM 7.2 Billion :


Jaks 51 % : CPECC 49 % tendering 200 MW ( Tender RFP dateline 25/7/2024 ) ….estimated Capex RM 800 million.

Land 1730 acres in Terengganu is going to be leased from TDM . ( Rental is RM 578 per acre per year ) .


Jaks 51 % = RM 408,000,000

Estimated Profit from setting up the Solar Farm is between RM 160,000,000 to RM 200,000,000 .


👉( Note : on Vietnam 1200 MW Power Plant , EPCC RM 8.7 Billion — Jaks 30 % : CPECC 70 % …. 25 % Equity , 75 % Loans .

Jaks 30 % : RM 600 million …. Cash RM 200 million + RM 400 million from profit of EPC2 construction contract RM 2.1 Billion.)

Hoho forgotten is KonartistLee , always with Kon tricks n Kon maths using his Tikus eyes:


referred to QR ended June 2016 :

Planting Schedule for 10 Plantations :

Project commence is from 2002 to 2009 …. Project Complete is from 2005 to 2015 .

In line with the company statement:

👉All our palm trees have matured. Out of the Group's total planted area of 69,589 hectares, about 3% of the palms are more than 18 years of age. The average age of palms is 14 years, which is within the prime production bracket.

Hoho this is not 1st time yr extraction method is with WRONG figures:

Posted by Sslee > 2 hours ago | Report Abuse

First planting is from 2002 to 2015.
—-
Posted by jjohnchew > 5 hours ago | Report Abuse

Simalau Plantation : 4,866 hectares

Simalau Plantation,kuala Niah. 98200,niah, Miri,SARAWAK.

Project commence : 2002

Project complete : 2005

>>

1.) not in Pulau Bruit .

2.) Replanting : 2002 to 2023 is 21 years .

Hoho Jaks Vietnam power plant is COD on January 2021 .. 25 years BOT is maturity on 2046 …

Where will Ssleee on 2046 ???🤣🤔

Hoho KonartistLee with his Tikus eyes telling lies by lies ke… no more facts n figures to support Jtiasa ..

Better switch to Jaks at Low price now …

See what happened to the Same group listed companies:

Rsawit : Loss making in Plantation business.

Subur Tiasa : Loss making in Timber n Plantation business… diversified business into pipe manufacturing n auto sector on 2023 ..

Jtiasa : Why 2nd Major keep disposed shares over a year from 14 % to 6 % … oredi sense something not right ?

Hoho as usual KonartistLee is best in twisting with his Tikus eyes …


Extracted key points :


👉👉👉2.) Replanting : 2002 to 2023 is 21 years .


👉👉👉Hoho Palm oil trees 20 years age is considered old trees … need Replanting latest by 25 years age . 


Posted by Sslee > 2 days ago | Report Abuse


It takes about four years for oil palms to produce fruits suitable for harvest. Each tree will then continue to produce fruit for up to 30 years .


—-


Posted by jjohnchew > 4 hours ago | Report Abuse

Simalau Plantation : 4,866 hectares 


Simalau Plantation,kuala Niah. 98200,niah, Miri,SARAWAK. 


Project commence : 2002 


Project complete : 2005 


>> 


1.) not in Pulau Bruit . 

👉👉👉2.) Replanting : 2002 to 2023 is 21 years .




Posted by jjohnchew > 3 days ago | Report Abuse


👉👉👉Hoho Palm oil trees 20 years age is considered old trees … need Replanting latest by 25 years age . 


TSH : average Trees age 13.4 years … Jtiasa : average Trees age 14.0 years … 



👉 see Public Invest Research on TSH article: 



👉Jtiasa : 


All our palm trees have matured. Out of the Group's total planted area of 69,589 hectares, about 3% of the palms are more than 18 years of age. The average age of palms is 14 years, which is within the prime production bracket. 



👉TSH : 


PublicInvest ceases coverage on TSH Resource due to slow growth, sluggish FFB yield 
By Faiqah Kamaruddin 
May 21, 2024 @ 11:02am 


KUALA LUMPUR: Public Investment Bank (PublicInvest) is ceasing its coverage of TSH Resources Bhd due to the company's limited growth prospects and sluggish fresh-fruit bunches (FFB) yield. 
The firm said it is reallocating its internal sources to other sectors. 



Investors should no longer depend on any of our financial forecasts for TSH Resources in making investment decisions, nor infer any adverse opinion as a result of our decision to cease research coverage," said PublicInvest. 


In a research note today, PublicInvest said FFB production growth is anticipated to be subdued this year due to the sale of plantation assets in Indonesia and Sabah (13,214 hectares) over the past two years. 


"Additionally, the average age of the plantations is increasing (currently 13.4 years old), and FFB yield remains low due to insufficient replanting activities in recent years," PublicInvest said.

Simalau Plantation : 4,866 hectares

Simalau Plantation,kuala Niah. 98200,niah, Miri,SARAWAK.

Project commence : 2002

Project complete : 2005

>>

1.) not in Pulau Bruit .

2.) Replanting : 2002 to 2023 is 21 years .

Simalau Plantation : 4,866 hectares

Simalau Plantation,kuala Niah. 98200,niah, Miri,SARAWAK.

—-

Posted by Sslee > 1 hour ago | Report Abuse

By the way quarter end 30/6/2024
Jayatiasa cleared 1,020 Ha simalau plantation for replanting.
This maybe one of the reason why 3 months end 30/6/2024 the cost of sales was high.

3.) Replanting cost for the rented land 52,880 x 30,000 , need Rm 1.6 Billion.

QR ended June 2024 : Reserve n Retained earnings is RM 0.5 Billion.

BOT contract
* 25 years from commercial operation date (COD).
* The power plant shall be transferred to Vietnam Ministry of Industry and Trade (MOIT) at no charge after 25 years.
* JHDP shall pay US$60,000 per day per unit for each day of delay after the deadline. The deadline for unit one shall be 48 months and 54 months for unit 2 after the construction start date. Subject to max of US$15m.
* JHDP shall pay US$150 per KW shortfall below the contacted capacity which is 1112MW subject to max of US$8m.
* JHDP company may terminate the BOT contract due to Vietnam side default or government events such as war, invasion, terrorist, revolution, strikes, none performance of GGU, change of laws.
* In the event of non-government force majeure like earth quake, flood etc, either party can terminate the BOT contract and MOIT has to purchase the assets based on the terms set out in the BOT contract. However, MOIT has the option to continue to pay the capacity charges and JHDP has no right to terminate.

the MOIT on September 19, 2016 officially announced that the start date of the BOT contract was October 1, 2016.

Coal supply agreement (CSA)

* Vinacomin shall supply anthracite coal for the full term of the BOT contract.
* Failure of supply gives JHDP the right to source for alternative coal from domestic or foreign sources and seek compensation from Vinacomin for additional costs.
* JAKS’ COAL SUPPLY AGREEMENT WITH VIETNAM NATIONAL COAL-MINERAL INDUSTRIES GROUP (“VINACOMIN”) (“CSA”) - The CSA provides for the delivery by Vinacomin and purchase by JAKS Hai Duong of coal for use in the Project from testing and commissioning until the termination of the BOT Contract or other circumstances as stipulated under the CSA. The quantities of coal to be supplied by Vinacomin will be determined, among other things, by the actual plant load factor and operating performance of the Facility and the quality and other characteristics of the coal used at the Facility. JAKS Hai Duong will have the right to buy from other coal sources in the event Vinacomin is unable to meet its obligations under the CSA and provided that the coal price from the other source have been agreed by both parties and approved by MOIT. There is no take or pay obligation (minimum order obligation) in the CSA.

Power purchase agreement (PPA)
* EVN shall purchase dependable capacity and the net energy output from JHDP.
* JHDP shall finance, design, build, operate and maintain the power plant.
* PPA shall have a duration of 25 years from the COD.
* No sales to third parties other than EVN.
* Non-recourse obligation precludes EVN from further right or claim against or recourse to the investors other than the assets of the BOT company (Vinh PPA)
* Liquidated damages payable by BOT company for outages beyond allowable limit at 105% of capacity payment (Vinh PPA)
* Liquidated damages payable by BOT company for Output at delivery point either less than 97% or more than 103% of output required under dispatch instruction at 5% of capacity payment (Vinh PPA)
*
* JAKS’ POWER PURCHASE AGREEMENT WITH VIETNAM ELECTRICITY (“EVN”) (“PPA”) - The PPA provides for EVN to purchase and the BOT Company to sell electricity generating capacity and electricity generated by the Facility for 25 years after the commercial operation date of the Facility unless extended or earlier terminated as stipulated under the PPA. The tariff charged by JAKS Hai Duong to EVN comprises the capacity charge, energy charge and supplemental charge. Fuel (coal and secondary fuel) and limestone costs will be passed-through costs under the PPA.
*
The Capacity Charge is a fixed payment that is paid each period for each kilowatt of available (not dispatched) capacity.  It includes fixed charges involved in the construction, operation, and maintenance of the power plant, including charges for: – Repayment of the principal and interest of the debt used to construct the facility – Return on equity capital invested – Fixed operation and maintenance (O&M) costs that are independent of the amount of energy generated (e.g., staffing costs, administrative expenses, operator fee, insurance premiums, etc.) – Possible fixed costs related to fuel supply and transportation, such as demand or through-put charges, or minimum take-or-pay obligations.

The Energy Charge is paid each period for each kilowatt hour of energy dispatched and delivered at the agreed delivery point during that period.  It includes variable costs involved in the generation of the energy delivered, including charges for: – Commodity charges for each unit of fuel used, including the cost of fuel and its transportation to the plant – Variable operation and maintenance costs (e.g., spare parts, lubricants, and other consumables) – A major maintenance sinking fund to cover the costs of required turbine maintenance based on usage.
The Supplemental Charge covers other costs not included in either the Capacity or Energy Charges, including:
– The costs of start-ups beyond an agreed number each year reflecting the cost of fuel per start-up and likely a contribution to the major maintenance sinking fund
– The costs of ancillary services provided if such services are included in the scope of the PPA
– Any supplemental charges for repairing damage to the facility as a result of a Force Majeure event if such repair is the responsibility of buyer.

Government guarantee (GGU)
* The GGU provides Vietnam Government Guarantee on all payment obligations of MOIT under the BOT contract and the EVN under the PPA.
* The guarantee on PPA is for 18 years from COD, and the full term of the BOT in the case of MOIT.
* Guarantor shall also pay interest on any sums outstanding.
* GGU also guarantee USD currency conversion and right to remit
* repayment of principal, interest, etc under financing document
* quarterly and annually profit distribution to JPP
* repayment of charter capital
* any expenses due to contracts goods imported
* any expenses due to foreign service contracts
* any payment that are due in foreign currency

A

Introducing Jaks Resources Vietnam Thermal Power Plant

JAKS RESOURCES(Jaks)在2011年争取的越南海阳燃煤电厂项目在经过了6年的风雨终于开工建设了。由于项目总投资达18.685亿美元，JAKS无法找到任何银行资助该项目，所以电厂的建设推迟了好几次，期间更换了2个中国伙伴。直到于2015年7月Jaks与中国电力工程顾问集团有限公司(CPECC)达至协议。Jaks让出项目控制权从以往60:40改为30:70的股权合资开发此工程。CPECC负责融资及全部工程建设。CPECC在进行发电和输变电厂的工程非常有经验。参与了约90％的中国煤电工程。共完成了49,000兆瓦燃煤厂工程。

为确保整个项目能够圆满完成，CPECC承担全部责任完成电厂建设，包括如需要额外的资本。 JAKS在建设期间将获得项目的4.5455亿美元工程。而此工程也将由CPECC承包。实质上，JAKS肯定会在施工期间赚取大约4亿令吉。此利润将流回合资公司充当JAKS的股权资金。换句话说，JAKS只需要拨出2亿令吉来拥有电厂30％的股份。完成发电厂项目后，JAKS在3年内有权向CPECC以成本购买另外10％而拥有合资公司的40%股权。

CEO洪南坡在2011年下了一个胆大包天的赌注，在世界面对金融风暴时刻，啃下一个陌生领域而且需要庞大资金的巨大BOT模式燃煤电厂工程。当时越南高速经济成长造成严重电力短缺，以至越南政府颁发了多个发电厂工程。因为资金需求庞大，大型的燃煤电厂工程都以BOT模式颁发了给外资企业。当时便有3个类似燃煤电厂供外企竞标。Mong Duong燃煤电厂是颁发给美国的AES Corporation (51%), Posco Energy (30%) and China Investment Corporation (19%)， 越南永新燃煤电厂一期BOT项目是由中国南方电网有限责任公司（55%）、中国电力国际有限公司（40%）和越南煤炭集团电力有限公司（5%）共同投资。而越南海阳燃煤电厂项目则颁给Jaks。CEO洪南坡被访问时表示去越南本意是寻找内行的水务工程，可机缘巧合发现越南严重缺电，所以竞标陌生的燃煤电厂工程。

可看到得标者个个都是几百亿市值，财力雄厚，经验丰富的跨国集团。何以势单力薄的Jaks也会得标 ？也许当时正处金融风暴而且项目多，竞标者少。

Jaks於2011年动工清理场地后便处于静态，前后换了2 个中国伙伴都因为无法得到任何银行资助而无法动工。2014年5月中越南海纠纷引发了一场“反华暴动”，中国冻结了对许多越南工程。Jaks已耗资2亿令吉。眼看将要泡汤。曾一度与TENAGA商讨合作，后来中国越南领袖互相拜访重新友好。中国大减钢铁产能而冻结燃煤产量导致煤电厂工程喊停。此举导致煤电公司出走寻找机会。又逢中国发起的一带一路计划给合格的项目得以融资。同时，越南政府也修改了政策以便项目的条例符合中资银行的严格融资条件。机缘巧合，天时地利，海阳燃煤电厂项目办妥了。

按照购电协议，电力售价将随原料价格波动。意味着业务盈利贡献获得保证。Jaks管理层曾透露内部回酬IRR介于12%，PAYBACK PERIOD为8至9年。如果发电理想，可获1.5亿美元的常年收入。Jaks 40% 股 权 可 得 2.58亿令吉，相等于每股盈利 RM0.53。

燃煤电厂于2016年3月28日动土。机组建设工期为42+6，2016年10月1日开始计时，按照里程碑计划2020年2月28日#1机组完成临时移交，2#机组顺延6个月。工程正如火如荼的进行中。至今，估计已完成50%。
Jaks越南海阳燃煤电厂项目有何风险 ？

越南海阳2X600MW燃煤电厂，是中国能建所属中国电力工程顾问集团有限公司（简称“中电工程”）与马来西亚JAKS以70:30投资股比合作开发和建设的越南BOT项目。该项目是“一带一路”沿线的重点项目，总投资约18.685亿美元，是目前中国企业在越南单笔投资额最大的项目。在此探讨海外BOT项目投融资所涉及的主要风险及防范措施。

越南海阳BOT电厂项目位于河内以东100公里，建设两台600MW燃煤机组，采用四炉两机配置，计划为海阳省及河内输送电力，是越南政府吸引外资开发电力建设的重点项目。马来西亚的Jaks公司在2008年获得该项目的开发经营权。随后Jaks与越南工贸部经过近三年的谈判，于2011年6月签署了25年特许经营期的BOT合同，同时签署的有关协议还包括与越南煤炭公司的购煤协议（25年）；与越南电力公司的购电协议（25年）；与海阳省人民委员会的土地租赁协议；政府担保与承诺协议。根据购电协议，海阳电厂所发全部电量由越南电力公司收购；煤价与电价联动，即煤价上升，电价也随之上涨，投资方的收益始终保持在一个稳定范围内。根据政府担保协议，越南政府对越南煤炭公司和越南电力公司的付款违约提供政府担保，项目收益可以100%转换为美元转入到投资方的国外账户。项目建设期54个月，2020年终必须完工。项目收益享有优惠税务，施工材料与设备进口税收全免。25年特许经营期满后移交越南政府。

中电工程与Jaks经过一年多的谈判，于2015年7月签署了合作投资协议，中电工程为项目70%股东，Jaks为30%股东，由中电工程负责项目的银行融资并承担EPC工程建设。

中国工商银行，中国建设银行股份有限公司，与中国进出口银行三家银行集团为此项目提供了75%的融资。
国家政治风险

Hoho Jaks did mentioned on intention to tender up to the limit of 500 MW for the 1000 MW package .


Shl be like 800 MW CGPP Solar project tendering … after 1st round Winners is awarded on August 2023 … 2nd round Winners is awarded on November 2023 … Solarvest with its consortium is awarded 60 MW , where as Jaks n other Winners only 30 MW .

Hoho illustrations: LSS5 2000 MW Solar EPCC RM 7.2 Billion..

Jaks 51% partner again with CPECC 49 % tendering 200 MW , estimated RM 800 million, ie Jaks portion RM 408 million. Take note Land 1730 acres is Lease from TDM with RM 578 per acre per year … shl be reducing the Capex .

Further more Jaks Shl be benefited from the EPC construction segment.

Hoho no worries, how Jaks managed to invest RM 600 million on the Vietnam joint venture power plant 1200 MW for 30 % …..

Hoho as said year 2025 shl be Jaks year ….

Hoho no wander Jtiasa 2nd Major ( ard 14 % ) keep disposed shares from August 2023 to July 2024 ( left ard 6 % ) .

Where as Ssleee keep accumulating..same as promoted SCIB without knowing the Major ( over 20 % ) is on Force Sell.🤣

Bad karma lo always said Jaks CEO will be Margin Call .🤣

Hoho despite earlier mentioned 2 hidden risks , additional one is more alarming , became 3 Hidden Risks :

1.) Why Subur Tiasa and Rsawit ( under same RH group with Jtiasa ) are loss making in Timber and Plantation business?
Subur Tiasa even diversified business into pipe manufacturing n auto sector since May 2023 .😱

2.) Pulau Bruit land is identified suitable for Hybrid Rice cultivation on 2024 … announced by UKAS , in line with Sarawak government vision to support Sarawak rice demand by own cultivation ( currently 34 % ) . Even to rivalling Kedah which supply 40 % Rice demand in Malaysia , of course need financial supports from Federal government on this .


> An illustration: as the company said 3% planted area 69589 is > 18 years , averagely 14 years , ie : 2087 hectares going to be Sawah Padi out of the
Rented land 52,880 hectares ( 76 % of planted area) .

Note : Rented Land , Approximate age of building: 15 years


3.) Replanting cost for the rented land 52,880 x 30,000 , need Rm 1.6 Billion.

QR ended June 2024 : Reserve n Retained earnings is RM 0.5 Billion.

Hoho repeat again ke ..just 2 points :

1.) why need to repay loans more than 10 years when you can repay in 10 years .

2.) Jaks non current asset is keep increasing, n Total equity is keep increasing to be prepared for bigger projects , eg : currently tendering LSS5 2000 MW Solar project ( RFP dateline is 25/7/2024 ) , partner again with CPECC > Jaks 51% : CPECC 49 % for 200 MW ( 2000 MW with EPCC RM 7.2 Billion, 200 MW is estimated RM RM 800 million) .

4.) Jaks Non current asset keep increasing since from year 2016 ( eg : Investment in Joint Venture March 2016 = 128,297,000 .. June 2024 = 943 ,960,000 ) with Gearing ratio is reduced from 0.8X to 0.303X as at QR ended June 2024 .

PPE : March 2016 = 19,269,000. …. June 2024 = 291,602,000 .

Total Equity : March 2016 = 594,847,000 …. June 2024 = 1,457,752,000


—-

Posted by Sslee > 2 hours ago | Report Abuse

JHDP cost USD 1.87 billion.
Equity 25% loan 75%.
Loan repayment term 10 years.

So anyone study economic/cash flow will know the first 10 years JHDP profit will be used for loan repayment and can't reward shareholders with good dividend.

4.) Jaks Non current asset keep increasing since from year 2016 ( eg : Investment in Joint Venture March 2016 = 128,297,000 .. June 2024 = 943 ,960,000 ) with Gearing ratio is reduced from 0.8X to 0.303X as at QR ended June 2024 .

PPE : March 2016 = 19,269,000. …. June 2024 = 291,602,000 .

—

Understand the Key Contractual Obligations of the project award
 
Investment certificate
* JHDP shall be entitled to 10% tax rate for the full term of the project.
* JHDP shall be exempted from corporate income tax for 4 years and 5% tax rate for another 9 years from 1st year with taxable income or 4th year whichever is earlier.

Hoho ssleee think is Jtiasa going to sell hybrid rice ke ???

On Jaks :
JAKS Resources said the sale and transfer of the land will require consent from relevant authorities and anticipates the disposal to be completed by the third quarter of 2025.

Hoho no worries, can diversify land suitable for hybrid rice into Sawah Padi … those not suitable for Plantation to be leased for Solar RE site like TDM land in Terengganu with rental RM 578 per acre per year .

Hoho as said CRESS details to be announced by September 2024 on TNB power grid as Third Party Access for RE Power Generators .. the Mulling charges is announced on August 2024 .. there is different charges on consistent supply n non consistent supply ( will affect the power grid load factor) … but standby charges ( storage charges) is not announced yet .

Hoho oh with the CGPP 800 MW Solar project Winners going to start Construction by 4Q 2024 n LSS5 2000 MW Solar project tender award by 4Q 2024 … Jaks is exploring the potential of opportunities in the battery energy storage system (BESS) market, with a particular focus on the Southeast Asia region.

Hoho ssleee is the business diversification as success as Jaks diversified into Power Generator industry n Solar RE …

Hoho sadly why Subur Tiasa in Timber , Palm oil n Chipboard manufacturing need to diversify into pipe-manufacturing and auto sector .

Hoho Forget Jtiasa ke as the Pulau Bruit land ( rented 76 % n lease 14 % ) going to be Sawah Hybrid Padi instead of Palm oil plantation.

Jaks :

Study on insiders behaviour:

1.) There is a Senior Manager Corporate Strategy with surname Ang is no longer in Top Management after 2017 .

2.) MD/CEO Ang brother did not hold any share and so far LTIP is not offer to him .

3.) CEO Ang had successfully prevented the Take over intention on 2018 . ( a sad battle of 14 % vs 30 % ) .

4.) CEO Ang had successfully steered the company diversified into Power Generator industry and Solar RE .

A difficult n complex task as referring to Toyo Ink Vietnam Power Plant contract being terminated on July 2024 .( awarded on 2020 ) , due to the financial arrangement for the project, which resulted in the effective termination of the build-operate-transfer (BOT) contract for the project by MOIT.

Hoho see how Jaks CEO successfully steered the company diversified into Power industry on Vietnam Power Plant 1200 MW joint venture with CPECC .

Where as Toyo Ink had failed :

Vietnam ministry cancels coal-fired Song Hau 2 power plant, Malaysian investor explores options. Vietnam's Ministry of Industry and Trade has terminated the $3 billion Song Hau 2 thermal power plant and sent a notice to Malaysia's Toyo Ink Group Berhad, the parent firm of the project investor.5 Jul 2024

Hoho Subur Tiasa :

Subur Tiasa ventures into pipe-making, auto

Monday, 29 May 2023

KUCHING: Subur Tiasa Holdings Bhd has ventured into pipe-manufacturing and auto sector as the company diversifies from its core loss-making timber operation and plantation business.

Hoho key points on Jaks as Calculated Risk stock :

1.) Compared Jaks , Zelan n Capital A … Jaks is much Less Risk .

2.) On Jaks LTIP granted RM 43.88 million to the Directors, based on SGP approved in 2018 , reference to Vietnam 1200 MW Power Plant construction, EPC contract ard RM 2.1 billion with Profit over RM 400 million.

> My own observation point : during the sad battle on Take Over intention on 2018 , Directors r in Loss as RI issued in WB RM 0.25 … none is converted . And to reward the Directors whom successfully steered the company diversified into Power industry.

3.) The only Substantial shareholder as at FYE2023 is the CEO with ard 14 % … others Top 30 are in average 0.5 % . The CEO shares all in Pledge Accounts, even all the WC .

The Lowest Jaks price is RM 0.12 .. price at 13/9/2024 is RM 0.14 . ( NTA 0.59 )

👉Ouestion : Do you think the CEO want to be Margin Call if Price dropped further , or is the time to reap the fruits by 2025 .

👉 WC with ex price RM 0.49 is mature on 18/11/2025 .

4.) Jaks Non current asset keep increasing since from year 2016 ( eg : Investment in Joint Venture March 2016 = 128,297,000 .. June 2024 = 943 ,960,000 ) with Gearing ratio is reduced from 0.8X to 0.303X as at QR ended June 2024 .

Current Ratio is in range 1.08 .

Question : Is this one of the reasons why Jaks PP fund raising still attracted interest of investors. ( compared to Hexcap n Binacom PP , no investors are interested n has to be delayed.)

5.) Jaks has 2 Cash Cow Projects:

a.) Vietnam Joint Venture Power Plant 1200 MW .. holding 30 % which fully Commercial Operating Date ( COD ) on January 2021 with 25 years concession.

b.) LSS4 50 MW Solar project in Penang which COD on August 2023 with 25 years PPA from TNB . Ni

On going Solar project : CGPP 30 MW is awarded on August 2023 … is scheduled to start construction on 4Q 2024 ( CRESS is scheduled to be announced details on September 2024 , Mulling charges is announced on August 2024 with TNB power Grid as Third Party Access ( TPA ).

> COD is scheduled on 4Q2025 .


6.) LSS5 2000 MW Solar Project with EPCC RM 7.2 Billion ( tender RFP dateline is 25/7/2024 , brought forward from December 2024 ) :

Jaks partner again with Vietnam Power Plant 1200 MW China partner , but this round : Jaks 51 % , CPECC 49 % … to tender 200 MW … Land 1730 acres in Terengganu is lease from TDM ( Rental is RM 578 per acre ) .

7.) Jaks recently had monetised Property land in Penang with RM 77.74 million…Net Book Value as at FYE2023 is RM 15.97 million…a net pro forma gain of RM50.38 million from the disposal.

Jaks had intention to monetise another 2 Property Division assets :

a.) Evolve Mall : loan balance RM 206.4 million… net book value as at December 2023 is RM 280 million.

b.) Pacific Towers : loan balance RM 70.6 million… net book value for Business Hub Tower only as at December 2023 is RM 232 million.

👉 Not only on anticipating Profit Gain on Monetisation these 2 properties asset , the Loans n Borrowings shl be reduced to Zero.

👉Loans n Borrowings as at June 2024 is RM 473.4 million….after monetise these 2 properties assets with Total Net Book Value RM 512 million … Jaks Shl be a Net Cash company.

👉👉as posted earlier, year 2025 shl be Jaks year .

P/s : After won the 6 years legal battle against Star on March 2024 ( Pacific Star project ) from Federal Court … Jaks is counter claimed Star for RM 540 million.. next case management on 11/10/2024 for the parties to comply with the Pre-Trial case management directions. Trial was fixed on August 2025 .

Hoho btw as said much earlier my investment portfolio divided into 2 categories:

1.) Growth n Dividend stock : oredi debated with Sslee in Jtiasa forum .

2.) Calculated Risk Stock : like Zelan with mother MMC as posted above .

Capital A with cost RM 0.58 … lowest price is RM 0.56 ..

Jaks cost ? Ssleee had you checked when you said bought Insas WC at RM 0.225 …

Hoho no worries as said Ethical Sifu 3iii picked on Good FA stock … I am on calculated Risk stock , eg Zelan with MMC ( mother ) cut win on 2021 during MMC privatisation.

Hoho Samling group previously had few listed companies, even One in HK listed .

But getting low profile….

Hoho Samling Miri group ke : Wealth House 55% jayatiasa subsidiary Wealth Houses Development.

No wander Rsawit most of the Plantation area in Miri .

During debated against Calvin on 2021 regarding bought Miri land , I found 1/3 of the land is not suitable for Plantation.🤣