Same to everyone here, please ask if there is anything you want to know. I will do my best.

Dear OTB, if there is anything you need to know, please do not hesitate to ask me. I will do my best to provide you a satisfactory answer.

Aseng, you are right. That is common sense. Even a monkey will do that ! Please forgive my language :))

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Aseng I do not know much about accounting or Vietnamese monetary policy

both JRB and CPECC are foreign investors in other people land
of course they wish to bring home all the profit they have made
my common sense tell me
it is easier to bring home the dividend than the entire profit
so dividend is definitely not an issue
they are more creative and clever than us .

DK66,

am I right .

I am just a satay man trying to talk about an expert issue

Dear OTB, you are welcome. And I really appreciate your kind effort in seeking information from the management. Thank you

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OTB Dear DK66,

I think I have a better understanding now on Jaks.
Thank you for your good work.
Many questions that my subscribers ask me previously which I cannot reply, I believe I can reply them very convincingly now.
Thank you again.

Even if Jaks is entitled to book 50% of the profit now, it will need to do a reversal after its equity interest reduced to 30% 3 years later.

OTB, appreciate your kind effort

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OTB Posted by DK66 > May 2, 2020 1:52 PM | Report Abuse

In any case, it is my opinion that the share of profit will be based on economic interest as the auditor is not likely to agree to book in 50% profit.
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Ans :
During my meeting with the management, they always said that they own 30% of JHDP. They never mention about 50% of the profit.
The management is very eager to buy up another 10% of JHDP urgently.
I will check on your question and advise you later.
I will direct the question to Mr Andy Ang.
Thank you.
02/05/2020 2:09 PM

This article should attract more investor interest in jaks. Personally, I think there is no better way for providing a more convincing yet easy to understand profit forecast on JHDP.

Please "like" this article if you agree.

In any case, it is my opinion that the share of profit will be based on economic interest as the auditor is not likely to agree to book in 50% profit.

warrantKing, you are welcome

Dear OTB, if Jaks is entitled to 50% share of profit in JV. The amount could be as high as RM326m (EPS RM0.50)

newbie8080, this is not the case for JHDP as RCPS does not carry dividend rate.

Even so, note that JAKS controls JHDP. Do you think JAKS will only declare dividend to RSCP which are wholly owned by CPECC without dividend to equity holders ?

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newbie8080 Wrong.
Dividend first for preference share holders before declaring dividend to ordinary shareholders.

Aseng, really appreciate your kind words.

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Aseng Posted by VIN3133 > May 2, 2020 12:13 PM | Report Abuse
Bro DK66 , you are so very patient up to the extent that you do not know how to explain further ! You are great !!

DK66, you are really a good man

when I first came to i3 , i thought every man writing here is a good man ,
later on I found that it is not
when I met DK66, I understand 1 truly good man worth more than many potatoes what more we still have Icon8888, Pjseow, Probability , OTB and many more now.
02/05/2020 12:49 PM

firehawk, your point is generally valid. However, it is made clear that the rcps does not carry dividend rate, it is ranked "pari passu" (equal) in all dividend payable to ordinary shares.

Dear OTB,

Please clarify with the management on the following question

Is the proportion of "share of profit in JV" from JHDP to be recorded in Jaks financial statement in the first 3 years after the commencement of operation to be based on equity interest of 50% or economic interest of 30% ?

Thank you

Around RM260m

Firehawk, it is made clear that the dividend will be the same

Dear OTB, you are right, it is good enough for CPECC. However, the point is JAKS may have 50% share of profit now.

newbie8080, please refer to Ranking of Rcps

While I will research further, I would like to request Mr OTB to seek clarification from Jaks management if possible.

VIN3133, firehawk has a point. CPECC may be entitled to 70% of the dividend but may only book 50% of the share of profit.

newbie8080, CPECC is immediately entitled to 70% dividend after COD.

firehawk, you brought up a good point. Let me double check.

firehawk, you are welcome

Yes, this is because the RCPS gives CPECC extra 20% economic interests

You are welcome
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Psng1215 DK66 thanks

firehawk, cpecc gets 70% of profit immediately after COD

Sorry, I m not sure what you mean

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firehawk How about 3 years immediate from COD?
02/05/2020 11:16 AM

Psng1215, YES, you are absolutely right !

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Hi DK66 I have a question ...

If china partner want to take their profits (70% ) back to china. Jaks will also receive (30%) dividend at the same time right?

Because no points to keep the profits at Vietnam right.
02/05/2020 11:10 AM

Is this mean that 3 yrs immediate following COD (not beyond 3 yrs after COD), CPECC and Jaks both have 50% equity in JHDP? - YES, equal voting rights

firehawk, you are welcome

NO, CPECC get 70% of the profit NOW

chl1989, you find my answer here

Jaks Resources - The Most Reliable Earnings Guidance for JHDPhttps://klse.i3investor.com/blogs/Jaks%20resources/2020-05-01-story-h1506848575-Jaks_Resources_The_Most_Reliable_Earnings_Guidance_for_JHDP.jsp

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chl1989 sifu dk66, you think 200mil net profit a year to Jaks pocket is possible by 2021?
02/05/2020 12:48 AM

Jaks Resources - Who controls JHDP ?
https://klse.i3investor.com/blogs/Jaks%20resources/2020-05-02-story-h1506852583-Jaks_Resources_Who_controls_JHDP.jsp

And very easy to understand, even by monkeys

Aseng, my latest article should stop all naysayers from accusing me of providing imaginary profit forecasts. It is a straight forward forecast. No assumptions, no projections, and no complex computations.

Aseng, you are welcome

I m very happy that you like it. Initially, I feared that you may prefer risk article :)

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Aseng DK66,

Very Good!

The latest one already very good
Very easy to read, very easy to understand Very reasonable and very logical
Now I am more confident
I will top up more on Monday
02/05/2020 9:39 AM

Aseng Thank you DK66.
02/05/2020 9:39 AM

I will write an article to make clear Jaks' position in JHDP once and for all.

liewtz06, you are welcome

Vinh Tan 1 achieved full COD in Nov 2018. There are initial cash reserve needs for bank installments (6 months as required by bankers), working capital, maintenance reserve, coal reserves etc. You will only see more aggressive dividend policy after all reserve requirements are met as seen in Mong Duong II.

I m sure it is not in the interest of the chinese partner to see idle funds remain in Vietnam. There is a shareholder's agreement between Jaks and its partner regarding control matters and dividend policy. I trust Andy to have his own interest at heart to see strong dividend distribution.

I believe Vinh Tan 1 will start to distribute dividend in 2020 which is similar to Mong Duong II

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liewtz06 Hi, DK66, thanks very much for the earning insights.
May I ask, if dividend pay out from JPHD to Jaks is much less than profit attributable to minority shareholder, how is it going to contribute positively to the free cash flow of Jaks?
I raise this concern because the in your table showing Annual Report of China Southern Power Grid, under Vinh Tan 1 earning figures, seemed that after 1 year of COD, the minority share holder did not receive any dividend payout, could it be the same case to Jaks?
02/05/2020 12:38 AM

Yes, correct entries

and upon distribution
Dr Bank
Cr Investment in JV

----------
Steve Ooi dr investment in jv under balance sheet
cr share of result in jv p&l

my son told me.
01/05/2020 11:58 PM

Dear OTB,

1. Yes, it will be reported as "share of profit in JV" in Jaks financial statement
2. Yes, the dividend may not be 196m. It maybe more or less depending on the need for cash reserve but it is not likely to be more than the free cash flow of 294m
3. No, profit is certainly 196m regardless of dividend distribution.

Thank you

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OTB Dear DK66,
I am not an accountant, I need to understand the below questions.

1. Assume the earning of Hai Duong power plant is RM 196 million (30% stake). I believe this earning will be reported as "income from other investment" in Jaks financial report. Am I correct ?

2. This earning or income is channeled back to Jaks Resources Bhd as a form of dividend. This dividend amount may not equal to RM 196 million. The amount will be less than RM 196 million. Am I correct ?

3. If JHDP does not declare any dividend even the earning is RM 196 million. In this case, the "income from other investment" in Jaks financial report is zero.
Am I correct ?

In the aforesaid circumstances, the EPS of Jaks cannot be based on RM 196 million. EPS will be lower or even equal to zero if there is no dividend declared by JHDP.

Please enlighten me.
Thank you.
01/05/2020 11:47 PM

warrantKing, I share your thoughts. This is a straight forward profit forecast with very high reliability and accuracy. There is no need for complicated computations.

---------------------------
warrantKing DK66 bro,

Compare to others article which showing bundle of calculation , formula , and etc.

I think your article is most reliable source to project JAKS's coming EPS.

Respect
01/05/2020 9:36 PM

Jaks now has 30% with option to increase to 40%

Aseng, you are welcome.

I m glad you think this is a very convincing article

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Aseng DK66,

easy to understand

a very good estimate

very convincing

Thank You.
1 thumb up for you

You are all welcome. Thank you

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Sunshine88 DK66 sifu,Icon sifu n Otb sifu, thank you for all your willingness in sharing.
01/05/2020 7:01 PM

BlessedInvestor Thank you DK66 and Icon8888 for kind sharing.
01/05/2020 7:19 PM

paktua73 a millions thanks we give for great sifu dk66..
on his great deliver for all of us benefit..
many just doing for own sake..
but..
great person willing to sacrifice
his time..money..
to sharing benefits together..
and here one of them are sifu FA dk66..


tut tut
thanks sifu dk66 for all great sharing..
we all got big benefits from your sacrifice..
01/05/2020 7:20 PM

I m grateful to Icon8888 for his detailed analysis using IRR. His article deserves many "Like"

Dear all,

I have fulfilled my promise made last year to deliver the strongest proof of all my evaluations.

Thank you

Dear all,

I have fulfilled my promise made last year to deliver the strongest proof of all my evaluations.

Thank you

My latest article is a solid proof that all my previous evaluations have merits and not imaginary !

I hope Aseng will not say he prefers risk articles. Just kidding

VIN3133 and johnmasino, you are welcome.

Lets makes Jaks great again !

VIN3133, you are welcome.

Lets makes Jaks great again !

Probability, thank you

The capacity payments of the two power plants should be extremely similar, if not identical, and that makes up the bulk of the earnings.