management said don sahong after tax profit will be 300m per years, it translate 0.73 eps which doesn't include resources and existing tawau power plant. Take PE 10 for don sahong alone we should expect RM7.30 at least share price when don sahong fully operate
markgor, Tung, yes! But still too conservative! Power plants especially Don Sahong has 25 years (am i right?), so at least 20 times PE (up to 40 times).
Low cost, high income visibility, market will like it very much once it is done.
If you read the Qtr report, management already said it will not obtain extension before expired date -- The existing Power Purchase Agreement (“PPA”) between Serudong Power Sdn Bhd (“SPSB”), a 51%-owned subsidiary of the Company, and Sabah Electricity Sdn Bhd (“SESB”) is due to expire on 2 December 2017. The Energy Commission (“EC”) has vide its letter dated 21 November 2017 proposed new commercial terms for the PPA extension that are acceptable to SPSB. The proposed new terms are however subject to the Minister of Energy, Green Technology and Water and the SESB’s board approval. While management remains optimistic the PPA will be extended, the aforesaid approvals and the subsequent extension agreement, are unlikely to be obtained and inked respectively before the expiry date of the existing PPA. In the absence of any eleventh hour interim arrangement with SESB, SPSB will have to stop supplying energy on 2 December 2017 until such time the PPA extension is executed. Earnings contribution from SPSB in the final quarter will be adversely affected if SPSB stops supplying energy on 2 December 2017 and for the remaining part of the month.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
akulamatata
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Posted by akulamatata > 2017-09-13 19:23 | Report Abuse
http://harryteo.blogspot.my/2017/09/1412-mfcb3069-don-sahong.html?m=1