Toyo was given 15 months after signing the BOT contract with MOIT to achieve financial close. Now 18 months has passed. Situation seems dire. Stocks trading lower and lower. Those major investors trapped are looking to get out. Toyo will have to write off its huge development investment in the power plant and has no means of paying back the huge loan owing to one of its major shareholders other than settlement via new issuance of shares. This will means huge dilution to the existing shareholders. Beware.
hi Just88, if such a case, situation in Toyo isn't looking good. Once shares diluted, especially the amount owing runs into hundred of millions RM compared to Toyo's earnings, their shares will be like a tombstone, for remembrance!
What Toyo management have been doing for past 15 months, no update at all. Will their power plant project be cancelled if cant meet the dateline? we are in the dark, whether to hold or to sell now.
I think the Power Plant will proceed once the huge debts with the creditors have been settled. I totally agree with HazByn `only balls of steel may enter...' hahaha.
Last September , President Xi Jinping already made official statement that no more building coal-fired power plants. Toyo also has not announced officially that the project is still on. Another major shareholder also started disposing shares. What does all this tell??????
Fishy statement, achieved Financial Close but subject to VN govt's approval, if the FC is for real, why still need approval as financier/financing banks would have given all approvals. Just to provide all valid financing documents to the VN authorities is sufficient. Its like saying when one gets a loan approval from the financing bank , still subject to developer's approval....... utter rubbish
nice. Look like the project will get official approval and announcement soon for this national strategic important project. Vietnam needs a lot of power and gas power plant will not be viable for now.
Toyo will divest 60% majority stake to its China partner, the gain arise will use to setoff for its equity portion in funding.
Toyo will retain ancillary construction project like jetty, coal storage warehouse, civil work infrastructure , worker housing etc. China partner will responsible for EPC work for main power plant
These structural work will let toyo start profiting at beginning of construction through construction profit for first 3 year period and thereafter 25year concession power traffic.
If Jaks, which has already began operation, is not worth buying at current price, then better be careful of toyoven which is still hanging in the air. Toyoven still haven't signed formal agreement with CIEEC.
Jaks power plant aldy operation, but, almost half of the power profit offset by loss incur in Msia business. More importantly, Jaks Malaysia business is recurring every year due to low occupancy rate in its shopping mall. With almost billion worth of shopping mall in its assets, it is prone to huge impairment in future.
Jaks need to be firm to dispose these loss making business, suffer one off write-down, turn to pure power stock instead of retain for it for continue loss, offset power profit.
Toyo local business is profitable albeit as small scale. The construction profit from Vietnam ancillary civil work on power plant, worth at least RM 3 billion, to be recognized during construction period is FAT enough for toyo to record massive EPS due to its small capital base.
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....
Legend
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Posted by Legend > 2022-05-20 10:51 | Report Abuse
Toyol datang lagiiiiii