As I argued earlier either option to retain or dispose the IPP with signed PPA with Tenaga is a big win for Tadmax. Option to sell now is better for Tadmax if the company can invest the cash proceeds in projects that can give good returns. After all the return from IPP now is not as attractive as before. The expected return for such IPP is definitely in the single digit. Since the plant is yet to be constructed, there are risks in construction, technology and operation over the period of 21 years.
Nothing to worry about this Tadmax if you are value investors. It has a strong balance sheet and will receive more cash from the disposals of the IPP project company to Kepco and Worldwide.
lol, you check other prop companies, QR negative share price up, just chill, show tomorrow. this company has positive QR and also 21 years contract with TNB
"However, this Project will not contribute to the near-term profitability of the Group as it takes approximately three and a half years before commercial operation commences. Upon completion of financial close, the construction of the Power Plant will ensue which expected to be first quarter of financial year 2021.
However, with the Proposed Interest of Worldwide Holdings Berhad on the Company’s remaining equity interests in PIPP, this may lead to the Group’s complete divestment of its interest in the Energy business segment but will however enable the Group to focus on its core activity of Property Development & Construction."
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....
JXnotJAX
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Posted by JXnotJAX > 2020-08-12 12:39 | Report Abuse
yea, rebound to .4 this week, next week try .5