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PublicInvest Research

Author: PublicInvest   |   Latest post: Tue, 19 Feb 2019, 10:13 AM

 

JAKS Resources Berhad - RM25.5m P&L Hit

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The Group has decided to throw in the towel in the court case with Star Publications after trying to appeal for so many times but was dismissed by the courts. After the recent dismissal by the Federal Court, JAKS, after consultation with its legal advisors, has decided to release the payment on the bank guarantee of RM50.0m to STAR on 9 January 2019. As such, with its 51% equity interest in joint venture, the Group has said that RM25.5m will be charged off in FY2018. This comes as no surprise as we have already factored in the losses in our valuations. However, the timing of the write-down is now known and we cut our FY18 estimates by c.40% to account for this new development.

We are also wary over the various dilutive equity fund raisings done so far and the poor execution especially on its property business. All told, we maintain our TP of RM0.65, derived from higher c.60% discount to our SOTP estimates of RM1.60, effectively pegged at c.6x PER. Neutral call is also retained.

Source: PublicInvest Research - 17 Jan 2019

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Labels: JAKS

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Chart Stock Name Last Change Volume 
JAKS 0.55 0.00 (0.00%) 3,026,200 

  Be the first to like this.
 
ZhuJiaHao nice sharing
17/01/2019 10:19
sltan77 KYY is so confident of JAKS winning the case
17/01/2019 11:39
potential huaan,netx,armada ,fintec,iris ,mlab potential reach TP0.20
17/01/2019 15:03
KLCI King KYY WAS a successful businessman many decades ago, he made millions in 2014~2106.

BUT, a big but, his stock selection in 2017 & 2018 are literally RUBBISH and had been dishonest by deferring the disposal announcement, wonder why so many still think he is Stock God?
17/01/2019 20:47
mneo Ah Ang continue to push.....for the sake of warrant...I guess :-)
17/01/2019 23:32


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