steady... msm fair value RM 2.80

rocket up, gogogo

I think big fund will continue go in and push to RM 3,,, gogogo

Sharing on JAKS's Fair Value

Company Background:
JAKS was founded in 1987 by Datuk Ang Ken Seng with the aim to be a major player in the water reticulation works. In fact, JAKS business actually started in 1960’s to provide plumbing services to residential premises.

Construction Prospect:
Estimated Outstanding Order Book: Approximately RM340million (as at 30 Sept 2020)

Although construction progress was interrupted during Covid-19 period, JAKS is confident that all construction projects are still on schedule. Besides that, due to the instability of the political situation in Malaysia, obtaining new construction projects has been a challenge. Moving forward, JAKS will continue to focus on its construction sector and actively tendering for projects in both local and overseas market.

Although contract flow has slowed down in the past 3 years, JAKS feels more bullish and optimistic with the approved Budget 2021 and look forward to new contracts being awarded.JAKS has submitted the tender for LSS4. Moreover as part of the management’s strategy JAKS will continue to expand grow its power business/division in Vietnam as there exists high demand electricity.

Power Plant - JAKS Hai Duong:
Based on the PPA, as long as the power plant generates energy for EVN, EVN needs to pay the guaranteed fixed amount of electricity payment (fixed capacity payment). JAKS Hai Duong power plant is estimated to generate between USD 600-700 million revenue per annum for 25 years.

JAKS has the option to increase its equity interest from 30% to 40% within the next 3 years:

JAKS Hai Duong has obtained tax incentives in Vietnam:
First 4 years after commercial operation date - 0%; Following 9 years - 5%, followed by 10% for the remaining term.

Does the coal price impact the company margins?
NO. JAKS is not affected by the rising trend of coal price, as Jaks has signed a 25-year contract with Vinacomin (local coal supplier), which not only ensures a stable supply of coal, but more importantly the coal prices are a pass through cost to EVN (Vietnam Electricity Corporation, equivalent to TNB Malaysia), therefore, fluctuating prices in materials doesn’t affect its margin.

JAKS Fair Value
Based on revenue, JAKS Hai Duong expected to earn USD 600 - 700m
Revenue : USD 650m = RM 2665m
20% PAT Margin : RM 533m

30% Jaks Portion : RM 160m
40% Jaks Portion : RM 213m

Share Unit : 1755m

EPS will be 9 cents (30%), and 12 cents (40%)

Based on energy PE, it is around PE 20 (Refer to TENAGA), why tenaga ? This is because TENAGA is the most stable company in BURSA. Therefore I assume PE 15 for JAKS

PE 15 X 9 cents = RM 1.35, if I discount 30%, it is just 94.5 cents. Current share price just 68 cents, the profit is around 39% which is minimum.

Disclaimer: This is not buy sell call, and i just sharing how I view JAKS and I believe 94.5 cents is easily achievable within 1 year. I am writing up this article to show you all the power of company value. Let see !

fair value shd be 1.30

yea... leave pls

Information get from some group

1) The first Power Plant completed and started to generate electricity and the second Power Plant is expected to start in the second half of 2021.

2) The electricity produced by Jaks will be fully sold to the government.

3) If costs increase, such as coal prices increase, the electricity bill will also be adjusted, therefore the profit will not be impressed.

4) JAKS currently bidding for the LSS4 solar project.

5) The property sector will no longer pay attention to the future. The management focus on the business of power plants.

6) Estimated turnover of power plants is 500600 m in USD, profit margin about 15-20%, therefore this profit will be very stable for next 25 years

7) Jaks’ power plant is very similar to Mong Duong II (a Vietnamese power plant under AES), and Mong Duong II’s current continuous improvement over the year

8) There is a lot of room for growth in Vietnam, because Vietnam is developing country, so electricity consumption will continue to increase.

there are many ppl worry about coal price, but actually the electric is sold to government directly , any coal price increase, it will factor in.. therefore the margin will maintain..

whatever the electric generated, will be 100% sold

recently i can see a lot of movement for jaks.. i heard oxb buy it

jaks already start to run power plant in vietnam, expect 200m profit per year..

this will translate to 33 cents eps per year..After deduct tax, shd be around 20 cents, as vietnam company tax is 35%...

PE 5 will be RM 1.00

Jaks will start sell electric, the future is very good

now a day no limitation of ppl in 1 car ad, it can be 4 or 6 depends car

now a day cmco = no mco, all ppl free go to anyway.. demand will back soon

Egg Price stand at RM 0.24 (Sept) & RM 0.22 (Oct), and increase to RM 0.27-0.28 since second half of November. Expect demand of egg will increase due to high demand during X-mas & CNY.

Egg Price stand at RM 0.24 (Sept) & RM 0.22 (Oct), and increase to RM 0.27-0.28 since second half of November. Expect demand of egg will increase due to high demand during X-mas & CNY.

walau, they buy this counter too

TXXXP buy call inari, frontkn, penta, uwc

TXXXP buy call inari, frontkn, penta, uwc

TXXXP buy call inari, frontkn, penta, uwc

cannot la cimb, gone case counter

all sold topglove and enter carberg

genm better i think... got covid, still up...

TS buy share, tropicana buy share. still drop.. kongkam counter.. haha , good luck

you see, even market said topglove wan to do vaccine... still will up meh ? rubbish

still buy glove meh ? no trend ad