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The Intelligent Investor

Author: tgorange   |   Latest post: Tue, 12 Mar 2019, 9:45 PM

 

How much is JAKS worth?

Author:   |    Publish date:


There are few points to consider before you decide whether to buy or sell JAKS.

 

1. Vietnam IPP contract awarded by the vietnamese government which is worth RM 7.8 billion.

2. The above powerplant is to be executed and managed by one of the largest and highly experienced Chinese construction company (CPECC) who has built and operate numerous powerplants in china and overseas.

3. According to the management from JAKS, JAKS will receive 100 million net profit every year from the operation of this mega powerplant for 25 years.

4. The powerplant is expected to complete and be operational in June 2020 (less than 1.5 years)

5. JAKS will continue to recognize profit now from the progress of the powerplant (about 300 million for 3 years until completion)

6. The losses in the last quarter result was mainly due to the exceptional payment of Rm 50 million to STAR, without this payment, JAKS would have made a decent operating profit for the quarter.

7. Jaks' poor performance from the property market is nothing infront of this tremendous profit of RM 100 million per year from the powerplant (IPP), and its for 25 years!

8. Jaks company has a high Net Assets Value of RM 1.3.

 

In Summary:

Powerplant business is a low risk business and the industry is usually given a PE of 12-15. With its high Net Assets Value, we give JAKS a conservative PE of 12 which converts to:

RM 100 million multiply by 12 = RM 1200 million       or       RM 2.05 / share

 

The recent rise in share price is just the beginning recovery from the plunge in share price which was mainly caused by the huge forced selling from RM 1.8 to RM 0.4 (While the company fundamentals remain intact)

 

Thanks for Reading ~~

 

Disclaimer: This is only for reference purpose and NOT a buy or sell recommendation. Data may not be 100% accurate, kindly visit official websites for more accurate details.

 

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Labels: JAKS

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Chart Stock Name Last Change Volume 
JAKS 0.77 0.00 (0.00%) 2,170,000 

  Be the first to like this.
 
cheoky my obstacle here remain to build the watertap, you need invest money into building the piping. still 2 years to go to complete the watertap. yet your company bleeding for foreseeable next 2 years.

and dont extrapolate mfcb donsahong profit into jaks plant lo. mfcb use water as input. it comes with a cost paid by mother nature. jaks use water also???

congrat to those bought low enough.
12/03/2019 10:14 PM
DK66 How do you get RM2.6/share ?
12/03/2019 10:29 PM
valuelurker So it is indeed USD 20-25mil per year from Vietnam IPP - you dont need Mngmt access.

As for the RM2.05 'value per share', youre doing it wrong

Youre pro or youre noob, thats life
12/03/2019 10:48 PM
i3lurker its not worth anything according to environmentalists coz getting rid of the coal ash and cancer health costs will cost more than any profit made from power generation.

Killings are good, the Killing Fields are back in Vietnam.

Long Live Killing the People of Vietnam
13/03/2019 7:14 AM
LKOH when did Management say they expect RM 100 million per year from the operation of the power plant?
13/03/2019 9:19 AM
LKOH Management did say they expect about USD 150 million revenue from the power plant, if everything goes well
13/03/2019 9:23 AM
LKOH This is for operation (not construction)
13/03/2019 9:24 AM
speakup Ang really fark Koon kaw-kaw in jaks
13/03/2019 10:03 AM
speakup when Koon buy 30% of jaks, he indirectly threatened Ang's position. that's why Ang had no choice but to fark Koon before Koon accumulate more jaks
13/03/2019 10:05 AM
origamiandair Good to teach the conman a lesson. But then the management is also not honest -- look at The Star's case.
13/03/2019 2:47 PM


 

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