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Author: OTB   |   Latest post: Wed, 4 Mar 2020, 10:19 PM


Jaks Resources - The share price of Jaks crossed above new high of 1.51 today

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Dear valued readers,
Please take note that the share price of Jaks crossed all time high of 1.51 convincingly today. I hope the share price of Jaks can close above 1.51 today.
Once the share price can cross 1.51 convincingly today, no more resistance to cross. Sky will be the limit once the "Cup And Handle Chart Formation" is well formed.
Enclosed is the latest technical chart of Jaks for your perusal.
Please read the below article appeared in I3investor.com.

I have summarised all the estimated values derived from the various valuation methodologies in the table below. 

Methodology Estimates (RM)      

Value Per share 

Comparison With Mong Duong II 180m - 300m 4.2 - 6.9 5.5
Comparison With MFCB Don Sahong Hydropower  200m - 267m 4.6 - 6.2 5.4
Discounted Cash Flow Method NPV1.9b - 3.4b 2.9 - 5.2 4.0
Based on Vietnam Government Data 160m - 213m 3.7 - 4.9 4.3
Based on Vinh Tan 1 Operating Data 287m - 383m 6.6 - 8.8 7.7
Average 206m - 290m 4.4 - 6.4 5.4

*Based on 30%-40% Ownership in JHDP. Value Per share are calculated based on 651m shares and 15 times price earnings ratio (PE).

Please note that the target price is 5.40, taking 50% discount of the RM 5.40 valuation is RM2.70. There is still more than 80% upside from current price.
Below is my latest FA report of Jaks for your perusal.
FA report   
  1. I assume all Malaysian operations to be zero value. Evolve Concept Mall is valued at RM300 million, I believe this amount of money is more than enough to cover all losses in Malaysian operations.
  2. FY 2019, I projected the profit after tax of 113 million. First nine months the total net profit is 91 million, I assume net profit of 22 million in Q4 2019.
  3. FY 2020, I projected the profit after tax of 150 million. 50 million is the construction profit from power plant and 100 million on the sale of electricity in 2020.
  4. FY 2021, I projected the profit after tax of 250 million from the sale of electricity only.
Year Price PAT EPS PER Target price Gain %
2019 1.46 113 0.18 7.85 1.80 23%
2020 1.46 150 0.23 5.92 2.33 60%
2021 1.46 250 0.39 3.55 3.89 166%

Lack of information on the Hai Duong power plant in Vietnam
I may agree with the feedback of the investors in I3investor.com that there are no coverage of Hai Duong power plant news in Malaysia. All news coverage are translated from Vietnam newspaper and posted in I3investor.com.
I also read all the news from I3investor.com.
I had also read all investment bank reports from HL Investment Bank, Affin Investment Bank and Public Investment Bank, they valued the share price of Jaks based on the Malaysian operations in Malaysian only. They hardly mention about big future earning of Hai Duong power plant in Vietnam. It is true that there is a lack of coverage of real earning from Hai Duong power plant.
News coverage by Public Investment Bank on MFCB and Jaks
Based on Public Investment Bank report on MFCB's 80% owned Don Sahong power plant in Laos, the projected target price is 5.71 and later further increase to around 6.19.
Please read the below link.
Public Investment Bank report on Jaks did not even mention about the potential earning of Hai Duong power plant in Vietnam.
Please read the below link.
You can notice the difference in this coverage is between the sky and the earth. 
The good feedback on MFCB is like the sky whereas the poor coverage on Jaks is like the earth.
I believe if there is a full coverage on the big potential of high earning of Hai Duong power plant in Vietnam, the fair price of Jaks now should be around 2.00. 
My recommendation to the management of Jaks
  1. Invite all investment bankers and analysts to attend the meeting when Q4 2019 results are announced in February 2020. Ensure all good news of your Hai Duong power plant real profit are told to all investment bankers and analysts. 
  2. The management of Dialog, Dayang and MFCB holds analyst briefing after announcement of quarter result, I hope the management of Jaks will consider to do it for Jaks this time.
  3. I believe they will arrange an analyst briefing when Q4 2019 results are announced in February 2020.
My comments
  1. I believe the share price of Jaks will follow the price trend of MFCB to go up north once all analysts and Investment bankers are told on the progress of Hai Duong power plant in Vietnam.
Final decision to buy is always yours.
Thank you.
寧可天下人負我, 休教我負天下人 
Disclaimer :
Please be informed that the aforesaid stocks are solely for the purpose of education only ; it is neither a trading advice nor an invitation to trade. For trading advice, please speak to your remisier or dealer representative.
Final decision to buy is always yours.
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JAKS 0.79 +0.03 (3.95%) 87,009,100 

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Will do.

Thank you for your support.
Hope Jaks will be my Miss Universe in 2020 and 2021.
It is so difficult to find a good stock now.
19/02/2020 4:20 PM

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