This is what PB research says, ". Based on our earnings estimates, the hydropower project will
contribute annual sales of RM400m-RM450m and profit of RM200m-260m
during the 25 years of concession."
Maybank predicted the powerplant to potentially contribute a minimum of USD55m of FCF p.a. over its 25-year concession. Expect good yield moving forward.
Operation For a run-of-the-river system to be possible in a given location, there needs to be two specific geographical features. The first is there must be a reasonably substantial flow rate, either from rainfall or a melting snowpack. In addition, there must be enough of a tilt to the river to speed the water up significantly.[4] Therefore, run-of-the-river systems are best implemented in bodies of water with a fairly constant flow rate. If they are built in locations where flow rate is fairly low for a period of time and then peaks dramatically, there will be a large amount of "wasted" water during the peak flow periods as the excess water falls through the spillways. This is because these systems are built to accommodate the lowest flow rate—thus, not be able to handle significantly larger flow rates.
In run-of-the-river systems, running water from a river is guided down a channel or penstock. There can be some change in altitude at this point (from a small dam or the natural landscape) so there may still be some contribution from "falling water." The diverted water is brought to an electricity generating house. In this house, the running water drives a turbine, running a generator and generating electricity. After being used, water is fed to the river downstream.[3]
Although run-of-the-river systems rely primarily on the flow rate of rivers to generate electricity and not a significant amount of water storage, some a small-scale dam or weir to ensure enough water enters the system itself. Pondage (a small amount of water stored behind the dam) is occasionally used, making them generally more reliable as they compensate for any discrepancies in water flow. This stored water isn't like a reservoir because it stores enough for "same day use" not future uses.[4][2]
Maybank estimates at least RM200mil net profit. Public Bank estimates RM200-RM260mil net profit. Insider Asia estimation - US60-70mil net profit in first 5 years (RM240-280mil). Lower subsequently due to tax impact. Tax is exempted for first 5 years.
Better sell now. When start production, result will always be lower than analyst expectation. When they want to push the price up, nice story will pop up as usual.
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....
AbdulMaalikBinUthmaa
37 posts
Posted by AbdulMaalikBinUthmaa > 2019-01-17 15:03 | Report Abuse
exactly, have to learn from pros like you on how to win in life