Koon Yew Yin's Blog
Mudajaya: Indian Power Project Completion - Koon Yew Yin
Koon Yew Yin
Publish date: Sat, 05 Jul 2014, 12:14 PM
Koon Yew Yin
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An official blog in i3investor to publish sharing by Mr. Koon Yew Yin.
All materials published here are prepared by Mr. Koon Yew Yin
All materials published here are prepared by Mr. Koon Yew Yin
Koon Yew Yin
About 7 years ago, CIMB research had a buy recommendation for Mudajaya because of the Indian power project as shown in the report below. Investors have waited for 7 years and all of them are tired and disappointed in waiting for the completion of the Indian power project. Finally the 1st unit of 360 mw will start firing in a few weeks and most likely all the 4 units of 360 mw will be operational by year end. How will this benefit investors?
What is this Indian power project?
About 40 years ago, when I was the CEO, Mudajaya built the 1st power plant called Tungku Jaffaar Poer Station, Port Dickson, Negri Sembilan, Malaysia. Subsequently Mudajaya completed 18 more power plants in Malaysia as a construction contractor. Mudajaya is a specialist in power plant construction.
But in India, Mudajaya holds 26% in an independent power producer (IPP) joint venture with an Indian partner to undertake the construction of 4 units of 360 mw coal power plant and the sale of electricity to the Indian Government.
Perhaps if I tell you some brief details of the Indian project, investors can imagine the difficulty of completing such a large project and forgive Mudajaya for the long delay.
The size: 4 units of 360 mw, totaling 1440 mw.
Cost: The total construction cost is about 1440 mw X US $ 1.5 million X 3.20 = RM 6,912 million.
Coal consumption: 1440 mw X 4,500 ton = 6,480,000 ton per year
Coal consumption cost at US $ 30 per ton = 6,480,000 X 30 X Rm 3.20 = Rm 622 million per year.
Power line construction cost: Rm 2 million per kilometer, total length required ??
Mudajaya holds 26% in this joint venture and its estimated profit is about Rm 70 million per year for 25 years which all investors have been waiting for.
The price chart shows Mudajaya share price has been depressed for many years. I believe it is due for re rating when the company makes the announcement of the completion of the Indian power project.
Mudajaya is one of my major investment holdings. I am not asking you to buy it but if you buy, you are doing at your own risk.
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Discussions
9 people like this. Showing 50 of 63 comments
Lohman, I appreciate and understand your comment. My main object in saying that I bought large amount of Jaya Tiasa and Mudajaya is to show my confidence in them, although it may sound like bragging. Can you imagine what the readers will say when the price of these 2 counters come down after I boasted? I will have to find a place to hide.
2014-07-07 10:06
Mr Koon, no matter what you mean you say, some will misunderstand and some will get the execution wrong. And blame you, which is most unfair. I just don't like to see you maligned unnecessarily for good men are few and far between. Especially one who sticks to his principles. Have a good day.
2014-07-07 10:22
Mr. Koon, many thanks for sharing the info. Please keep up the good work and sharing.
Lohman, I think no matter how low / high profile Mr Koon posted his stock selection; sure will have one or two cowards will try to take a snipe on him. U just cant please everyone in this world.
2014-07-07 10:26
Good article to share...
If the shares are not known to many investors, in other words they are below the radar, then any fundamental result would have a minimal effect on the shares simply because there are not going to be many investor affected by it. That is why research reports and newspaper highlights are crucial. That is why investor relationship are vital for any publicly listed company.
just that we have to remember that a correct analysis does not guarantee you a profit in the stock market. It simply gives you a chance at making a profit when everyone else catches up with your findings AND you have enough staying power to wait when they do.
http://mymusingsmalaysia.blogspot.com/2014/07/share-price-demand-supply-and.html
2014-07-07 22:59
MrKoon,thanks for sharing the info and keep it coming.We are responsible for our actions at the end
2014-07-08 23:43
Dear Mr Koon, i have a question that i just can't get my head around, and i don't think i can find real answer from internet... so, may i ask this: why do rich people in their elder years still spend time pursuing more wealth? If happiness is the ultimate goal in life, do we really need that much money for it?
2014-07-09 16:28
bigdigkai, I think you would like me to answer your question which should be interesting to all the readers.
At my age, I want to make more money to give it away to help poor people which makes me happy. In fact, I have written in my will that I will give Rm one million to each of my 7 dependants and the remaining of all my wealth will be for charity.
While I am doing it, I also help investors to buy good stocks with good profit growth prospect. For example this article which I posted a few days ago. Since its publication, the price has been going up with heavy volume.
Another example is Jaya Tiasa, when I recommended buy a few months ago, it was selling about Rm 2.10.
Very often, good share like Mudajaya, remained depressed for many years because investors are tired of waiting for good news and they sold their holdings.
It explains the frustrations of investors trading on fundamental analysis and valuation as to why sometimes despite the wonderful fundamental results, the share price does not budge, or worse drops. It is because it failed to increase expectations.
Expectations are a function of the number of investors and their expectation level.
If the shares are not known to many investors, in other words they are below the radar, then any fundamental result would have a minimal effect on the shares simply because there are not going to be many investor affected by it. That is why research reports and newspaper highlights are crucial. That is why investor relationship are vital for any publicly listed company.
If we have discovered a gem of a share based on our own fundamental analysis, no matter how accurate our calculations were, it would mean nothing if our expectations are not shared by others. Not that we are wrong or anything, it is simply that other are not aware or worse not interested.
I must admit that when the price of Mudajaya and Jaya Tiasa goes up, I feel so satisfied and happy knowing that I have help investor and myself make some profit.
bigdickkai, have I answered your question?
2014-07-09 17:37
Koonbigfatliar, why don't you use your real name? Judging from what you wrote, all readers know how successful you are. I am sure your friends know how successful you are.
Why don't you write some thing for us to judge you. Educated people do not behave like you.
2014-07-09 18:39
In this world that we all live in, we should always strive to help others if we are fortunate. The questions posed above can also be asked to Warren Buffet who is among the top richest people in the world & has donated a bulk of his fortune to charitable causes. Do your do best & help others. In this case, Mr Koon has proven himself to be a philanthropist & is helping the unfortunate with the wealth that he has accumulated, because of his passion. It's not really about the money. It is doing what he is passionate about & making money in the process, which enables him to help others. We all should strive to contribute how ever we can. No need for hostile statements above. Just do your best, live life & help the unfortunate. Remember that our children will inherit this world. Do we want it to be filled with hate & distrust?
2014-07-09 20:31
cy1988, I am accumulating TH Plantation when there are lots of sellers. I think I have been the largest buyer in the last few weeks. Today I could buy it at Rm 2.00. I strongly believe the result for the next few quarters will show increased profit. It is the cheapest in terms of market Cap per ha.
2014-07-09 23:18
Mr. Koon, I really enjoy reading your commentary on politics. You have a very sharp mind and you are able to accurately analyze and assess a situation based on facts and figures. I would like to humbly request if you could write a piece on the handling of the current Water Crisis by the Selangor MB, Tan Sri Khalid. Hr has maintained that he is doing what he is doing in the interest of the public. Despite this, we have prominent opposition such as Tony Pua criticizing his actions.
I am very interested to know your thoughts on the situation and whether did the MB do the right thing and got a good deal for the people of Selangor (which I am a resident of). The Star recently reported a piece to 'support' TS Khalid by saying that we need more selfless politicians like him. It seemed to me that the article is biased towards putting the opposition in a bad light. What do you think of it? Is the MB really as selfless they claim and was his moves (to acquire Syabas among others) makes sense?
Thanks!
2014-07-10 02:22
KYY - thanks for the write-up. Appreciate to see a real Dato in this website, a rare finding i must say.
2014-07-12 16:45
zamsaham, who is a real Dato you mentioned? I am not a Dato. In fact, I have rejected a Datoship offer before. If I am a Dato, I cannot criticize the BN government for all its wrong doings.
2014-07-12 16:59
Datuk in malaysia doesn't mean anything anymore......kekeke
My father also Datuk....many grandchildren ...lol
2014-07-13 22:27
Looks like another pendatang doing well....after the other won Master Chef....
http://www.malaysia-chronicle.com/index.php?option=com_k2&view=item&id=320382:well-done-msian-surgeon-dr-james-leong-leads-aussie-team-to-give-filipino-boy-a-new-face&Itemid=2#axzz37MKtZMlH
http://www.mirror.co.uk/tv/tv-news/masterchef-2014-winner-ping-coombes-3554594
2014-07-13 22:40
Dato title is not important. What is important is character, integrity, honesty, loyalty and fairness. Some datos are OK, but some really dont deserve them.
2014-07-13 23:03
Wah the 5 items named here in the practice n qualities of leadership noted by john c maxwell.
2014-07-13 23:09
dato title should only be given to people who contribute to society but not in a monetary way. No point pay your way for a dato title.
2014-07-13 23:19
it is thru communism then society will learn the meaning of freedom n etc... society needs to learn a hard way...easy ways it does not understand
2014-07-13 23:57
Current market cap is RM1.35B, in 2007, market cap from above research paper RM0.57B., alr up around 2.36 times.....
2014-08-04 17:55
Hi. May i knw what's ur opinion regarding Mudajaya now,since the situation of power plant in India is not so bright.
2014-09-26 18:29
MUDAJAYA is in the process of transforming into a powerhouse,says a friend. Well time will tell then. 1MDB has wun 3 IPP, mudaJaya stands a good chance to build them,also kidex. The prop division wil contribute 10% of the profit (demolish tropicana office and re-develop into other type of prop for sale)
2014-10-22 03:24
did i miss the news? july has passed, has the 1st 360mw of the 4units run d?
2014-10-22 03:25
Another example is Jaya Tiasa, when I recommended buy a few months ago, it was selling about Rm 2.10.
2015-02-21 12:03
Lohman, I appreciate and understand your comment. My main object in saying that I bought large amount of Jaya Tiasa and Mudajaya is to show my confidence in them, although it may sound like bragging. Can you imagine what the readers will say when the price of these 2 counters come down after I boasted? I will have to find a place to hide.
2015-02-21 12:05
A big desperate seller sold Mudajaya and I bought more than one million shares at about Rm 2.40. Now Mudajaya is my 2nd largest holding. I am so sure to make several millions soon
2015-02-21 12:07
The real koon already run and make money
Now he is hiding somewhere as his calls make many lost money big time
This koon must be a faker or disgruntled loser/child
2015-02-21 17:58
Hi Mr. Koon, is it possible for you to share us the latest Mudajaya's news. stock. india powerplant progress. future / potention of Mudajaya, target price ...
2015-05-14 12:18
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lohman
Mr Koon, you can make RM millions on moderate price fluctuations of 10% or so on highlighted stocks because of your relatively high transaction volumes. Not so the rest of us who don't have the means to commit tens or a hundred million RM on a single counter, no matter how promising. To some extent, your trades do influence the stock price and some who have been negatively impacted may be justified to doubt your sincerity. I know you mean well but is it possible to tone down the shouting about how much you bought at the cheap sale and how much you will make in future? The information sharing is very much appreciated but not so much what seems like bragging. Excuse my forthrightness and thank you for your understanding.
2014-07-07 09:47