Well positioned for the next growth phase. Bullish.

Furniture stocks in play

I read Mr Koon's article in Focus Malaysia this week on why he bought into JAKS. The impression I get is the IPP and the construction contracts are very lucrative. Can anyone shed some light on the terms of these agreements?

An IPP relies heavily on the terms of the PPA. That is after assuming the plant is built within specification and cost, which I trust CPECC/JAKS will be capable of. Those familiar with the industry would also tell you not all PPAs are the same. YTL, being an early entrant, has more favorable terms as compared to the later players (also known as 1st generation PPA).

IPP is an IRR game. What is the IRR for this greenfield project in Vietnam? Does anyone know what the tariif is? And if they have fuel cost pass thru terms?

Any insights into these would be most appreciated.