2月17日上午12时22分，越南海阳项目#1机发电机定子顺利吊装就位，标志着汽轮发电机安装进入新阶段。
　　越南海阳项目发电机采用哈尔滨电气集团哈尔滨电机厂有限责任公司生产的发电机设备，发电机定子位于汽机房12米层运转平台上，净重290吨，外形尺寸10.35米×4米×4.277米，采用两台80/32t行车配合4台200t液压提升装置进行吊装，先后完成发电机定子地面卸车、调向90º，发电机定子起吊以及将发电机定子移动到基础上方就位等工作。
　　吊装前，机械化专业连续奋战一个星期进行液压装置安装、两台行车连接、承重梁安装等准备工作，确保了定子提前具备吊装条件。为保证吊装过程安全，机械化专业提前制定了科学的吊装作业方案，对危险点进行识别并制定了全面的安全控制措施及注意事项，吊装过程中安全监督人员全过程旁站。为保证一线连续施工，项目部行政科加大后勤服务力度，将饭菜送往施工现场。项目全体通力奋战，保证了定子吊装这一重大节点如期、高效完成。

Jarklp, human are greedy and selfish. Put anyone in ALP's shoes will probably do the same thing. Why would ALP pay personal tax on the LTIP, if Jaks is unworthy?

There are 2 ways to find out Whether the Vietnam IPP is too good to be true. Either You wait for the results after it started to generate electricity or you use all means to research on the project and find out all you can.

If you are risk adverse, I reckon it is always safer to wait for the results.

Newbie8080,

You are right to say that Hydropower has better profit margin than coal power. In fact, it has much better profit margin as it rely on natural flow of water to generate electricity.

However, I would like to point out that while it is extremely important for a country to decide on its energy landscape, for power producers, the ultimate returns on its investment is above all else.

Both Don Sahong and Hai Duong power plants rely on the country's sole electricity distributor to purchase the electricity produced by them. Both are under 25 year BOT agreement with the Government. They are paid based on the PPAs signed which determine their potential future earnings and returns.

Therefore, the return on investment of the projects is actually the main consideration during feasibility studies, not the profit margin of the plant.

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newbie8080 @ DK66

MFCB's power plant in Laos is hydropower whereas Jak's coal fired power plant.
I believe hydro powered plant has better profit margin than coal fired plants as they do not incur cost like coal(price in USD) to run it.
Besides, they can't control the price of the commodities.
Even with "pass through", it still face the inefficiency which also happen to energy giant like TNB.

The article https://klse.i3investor.com/m/blog/kianweiaritcles/167468.jsp is incorrect on the point about the impact of coal price fluctuations on Jaks' power plant. Under the power purchase agreement, the cost of coal is a "pass through". It will not affect the profitability of the plant.

Please read my article "Understanding Jaks Hai Duong thermal power plant in Vietnam" to have a better understanding of the power plant.

It was reported in the latest edition of The Edge Weekly that the 260MW Don Sahong power plant in Loas which is 80% (208MW) owned by MFCB is expected to commence operation in early 2020. It is expected to contribute US$60-70M annual profits to MFCB. MFCB is expected to fully paid off its loans in 3 years

Jaks currently owns 30% of the 1,200MW Hai Duong plant, effectively equivalent to 360MW. If using MFCB profit of around US$0.31m (65m/208MW) per MW, Jaks is expected to make US$111m (RM450m) annual profits from its Vietnam IPP. Equivalent to EPS 0f RM0.77 (RM450/584m shares)

Why vietnam continued to opt for coal power ...........

Truong Duy Nghia, chairman of the Vietnam Thermal Science and Technology Association, said that the advantages of coal-fired thermal power is low investment cost of some US$1,500 per KWh and cheap sale price of about US$0.7 per KWh, which are lower than hydro, solar, wind and nuclear power.

In addition, Nghia said, coal-fired thermal power plants are capable of generating large amount of power and do not rely on natural factors as some other clean power sources.

Nguyen Minh Due, chairman of Vietnam Energy Science Council, said that many countries in the world have no tendency to develop coal-fired power anymore because it is out of potential and especially polluting the environment. Meanwhile, Vietnam still has to base on the power source as it is very difficult for the country to meet the energy security in the current context when nuclear power projects have been stopped while wind and solar power capacity is small and depends on weather conditions.

https://english.vietnamnet.vn/fms/business/207797/chinese-investments-flowing-in-vietnam-s-thermal-power-plants.html

Then, do you believe Mr koon has sold out completely and will never come back ?

Ron90, is it so important to you why Mr Koon sell out ? I merely took what he said on face value.

I just hope there are some with longer views.

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Kukuman What for write long post. All forumers here are gambler. They just want hot tip when to buy and sell faster than the fart come out their ars

The Capacity Charge is a fixed payment that is paid each period for each kilowatt of available (not dispatched) capacity. It is payable regardless of plant utilisation. It includes fixed charges involved in the construction, operation, and maintenance of the power plant, including charges for: – Repayment of the principal and interest of the debt used to construct the facility – Return on equity capital invested – Fixed operation and maintenance (O&M) costs that are independent of the amount of energy generated (e.g., staffing costs, administrative expenses, operator fee, insurance premiums, etc.) – Possible fixed costs related to fuel supply and transportation, such as demand or through-put charges, or minimum take-or-pay obligations. It aims to reduce the investment risk of the operator and to increase earnings visibility to win approvals from bankers.

The Energy Charge is paid each period for each kilowatt hour of energy dispatched and delivered at the agreed delivery point during that period. It includes variable costs involved in the generation of the energy delivered, including charges for: – Commodity charges for each unit of fuel used, including the cost of fuel and its transportation to the plant – Variable operation and maintenance costs (e.g., spare parts, lubricants, and other consumables) – A major maintenance sinking fund to cover the costs of required turbine maintenance based on usage.

The Supplemental Charge covers other costs not included in either the Capacity or Energy Charges, including:
– The costs of start-ups beyond an agreed number each year reflecting the cost of fuel per start-up and likely a contribution to the major maintenance sinking fund
– The costs of ancillary services provided if such services are included in the scope of the PPA
– Any supplemental charges for repairing damage to the facility as a result of a Force Majeure event if such repair is the responsibility of buyer.

Yes, while this amount gives an idea of the size of Jaks Hai Duong power plant, it actually represents the potential revenue to be generated by EVN from Hai Duong plant. EVN will pay JHDP according to the PPA which includes capacity and Energy Charges.

Jaks Hai Duong power plant is capable of producing over 8,000,000,000kwh of electricity per year. I suppose each of you can work out for yourself how many household it could supply for their power needs depending on your own estimates.

Based on 3500kwh per household per year, 1200MW can power 3m homes.

Megawatt: One megawatt equals one million watts, or 1,000 kilowatts, roughly enough electricity for the instantaneous demand of 750 homes at once. That number fluctuates (some say one megawatt is enough for 1,000 homes) because electrical demand changes based on the season, the time of day, and other factors.
Megawatt - California Energy Commission
https://www.energy.ca.gov/glossary/ISO_GLOSSARY.PDF

I wonder if he will apologize to the readers here when Jaks becomes a star, or he will just disappear.

It is easy to blame everything on conmen and lies when you can't find anything to substantiate your negative views.

I scare nanti kena Tembak lagi tembak by Ks55

Sarifah, Icon8888 has done a good article on this already.

https://klse.i3investor.com/blogs/icon8888/185277.jsp

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SarifahSelinder DK66

As u noted...


For now, Jaks is haunted by the property busines...


So why don't u take the bull by the horns and buat analisis on wat maximum damage the property business can do on Jaks in d near future

I m not saying the household bill is going to be RM300 per month. It is there as a illustration of the potential size of the business. Even half the sum is considered a big business by any measure.

By the way, vietnam subsidises household electricity bills.

Icon8888, I don't mind listening to criticism so long as there are logical and sound. However, some just carry too much hatred and attack. Some getting personal. I didn't just came out from the sky and ask people to buy. I merely shared my research and knowledge. I lay down information and data so that readers can perform their own analysis and make their own decision.

So, vietnam will only let the American (AES corporation of Mong Duong 2) make good money out of her people and not the mainland chinese, in particular Hai Duong power plant ? What about Vinh Tan 1 which is also mainland chinese owned ?

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ks55 Power plant in India cost Mudajaya's life.
Do you think Vietnamese govt is so dumb to let Mainland Chinese make so much money out of her rakyat?

China and Vietnam still not in that good term really.
11/02/2019 20:21

Extracted from my previous article :

Information sourced from AES corporation which owns 51% of Mong Duong 2.

AES-VCM Mong Duong Power Company, a joint venture between AES Corporation (51%), Posco Energy (30%) and China Investment Corporation (19%), developed the 1,240MW Mong Duong-2 (MD2) coal-fired thermal power plant in the Quang Ninh Province of Vietnam.

The power plant was constructed on a build-operate-transfer (BOT) basis and comprises two generating units of 620MW gross capacity each.

Mong Duong-2 is Vietnam’s first and biggest coal-fired BOT project and is also the biggest private sector power project undertaken in the country. The $2.1bn project was developed with 100% foreign direct investment. Ownership will be transferred to the government of Vietnam after 25 years of operation.

Mong Duong 2 is a very close model for the Jaks power plant as;
1. Both in northern Vietnam
2. Both about 1,200MW capacity
3. Both using domestic anthracite coal
4. Both under foreign BOT guaranteed by Vietnam Government
5. Both projects cost around US$2b
6. Both Power purchase agreements signed with EVN
7. Both coal supply agreements signed with Vinacomin
8. Both under max 18 years loan tenure allowed by Vietnam government

https://s2.q4cdn.com/825052743/files/doc_presentations/2016/AES-Q4-FY-...

Page 52 Mong Duong distributed US$46m to AES in 2016

https://s2.q4cdn.com/825052743/files/doc_financials/quarterly/2017/q4/...

Page 46 Mong Duong distributed US$51m to AES in 2017

Therefore, Mong Duong distributed US$90m in 2016 and US$100m in 2017 to its shareholders

Mong Duong 2 thermal power plant, strive to produce over 8.1 billion kWh in 2016. According to information from the Mong Duong 2 Thermal Power Plant, since its inception, from April 2015 to December 2015, the plant has contributed over 5.3 billion kWh of electricity to the national power grid.

This shows that Mong Duong 2 power plant was immediately operating in full capacity upon operation in April 2015.

Mong Duong 2 was an immediate success ? why won't Jaks hai duong power plant ?

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Roy 8 Jak's construction sector is not doing well, partly due to poor management and it is losing money currently. It has only 30% share of Vietnam Power plant. If lucky, company will only be profitable in 4 to 5 years' time. Why not look at KLSE power companies, like Malakoff, YTL power, CYPark, etc. Many of them are financially more secure, more established and currently profitable. Moreover, they give decent dividends and their share prices are fairly valued, if not undervalued. Less risk too! Why not give them a second look!
11/02/2019 11:02

https://www.youtube.com/watch?v=qC6x8XqPEdo

https://klse.i3investor.com/blogs/icon8888/185277.jsp

Icon8888 sifu did a simple and easy to understand article on the future earnings landscape of Jaks. Although not quite the projection I anticipated but it merely aims to make his point " why jaks will be AT LEAST profitable going forward" vs uncle koon's forecast of continuing losses for the next few quarters.

Good to read.

“Construction of the power plant is currently 22% complete and is targeted to reach 50% by the end of the year. There is a strong indication that work on the project will be expedited for full completion in 2020. As such, 2018 and 2019 are crucial years for us,” Lam Poah said.

http://www.theedgemarkets.com/article/jaks-resources-puts-property-ambition-hold

If Vietnam power plant was 50% done by end 2018, it will record 18% job done in Q4 2018. At 25% profit margin, its revenue and profit from Vietnam will be RM340m and RM85m respectively. More than enough to absolve the the RM25m BG losses, losses from property, and any LAD damages.

How long it is expected to take for Jaks to reach full capacity after commencing operation ?

http://www.baoquangninh.com.vn/kinh-te/201602/nhiet-dien-mong-duong-2-phan-dau-san-xuat-dat-tren-81-ty-kwh-nam-2016-2297977/

According to information from the Mong Duong 2 Thermal Power Plant, since its inception, from April 2015 to December 2015, the plant has contributed over 5.3 billion kWh of electricity to the national power grid.

This shows that Mong Duong 2 power plant was immediately operating in full capacity upon COD in April 2015.

In business, there is a chinese saying "要钱不要脸，有钱有脸，没钱没脸“. Money first face second.

However, if price to shoot up from now on, face also saved. Happy Andy and happy shareholders.

Happy New Year !!

As the LTIP has long expiry date, Andy should have waited until the power plant start to generate income before granting the RSP. By then the price would have substantially advanced and happy shareholders would not feel short-changed by the distribution. Hence criticism avoided and Andy's face saved.

However, that would mean Andy has to pay much higher personal tax and the company will have higher RSP charges to P&L.

So, Face vs $$, and $$ won.

The latest BUSY WEEKLY publication raised concern on the manner in which Jaks' RSP was distributed as well as the timing. High proportion was granted to directors despite very poor share price performance. The publication cited that the portion granted to Andy is almost 50% of 9 months profit in 2018.

So, how would Andy justify the allocation ? Would the shareholders view the allocation differently if the share price is RM5 now ?

Dear Sslee, the by-law provides that the SGP portion should not be more than 60% of the LTIP. The LTIP is 15% of issued and paid up capital at any point in time during the LTIP period. The proportion of SOP and SGP is up to the LTIP Committee. There is no law governing the manner in which the LTIP is allocated except certain guidelines. However, its implementation is subject to SC audit. The SOP and SGP may not have the same allocation patterns.

CharlesT, no need to get upset with my analysis. Be happy..... This is a real world. Things don't always work in the ways we wanted. Sometimes we have to make the best out of the worst. Positive thinking makes one sees thing clearer.

Instead that making complaints all the times, why don't see things from different perspective ?

Big boss taking advantage of small shareholders is a very common thing. No need to feel so surprised.

Big players suppress the stock price to buy cheap is common too.

This is a cruel world, we eat cows, tigers eat rabbits, spiders eat insects, big fish eat small fish. You are naive if you have came to KLSE thinking you can have a fair play.

Same goes to i3, there are people with ulterior motives. Some want to talk up the price to sell, while some want to talk down to buy cheap.

My advice is take only what make sense to you, ignore all rubbish comments.

So, you only have yourself to trust. If you are not comfortable with my analysis, ignore it. If you are not comfortable with Andy, stay clear of Jaks.

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CharlesT I m indeed quite upset with DK66's explaination how this supposed to be view positively in terms of tax blah blah blah

He should answered like what i suggested earlier

ALP will get motivated by this millions of free shares n he will work 24 hours in vietnam looking for few more foc lucractive ipp contracts n he will never go kara oke again..

That could be more convincing....
01/02/2019 11:43

If Jaks is a total mess up, why Andy bother to issue the RSP now and pay 28% personal tax? Could just wait for lower price to minimise tax.

The Q4 2018 results will see a big jump in construction earnings from Vietnam ipp. The power plant construction will make big progress in 2019 and will be completed by year end. Hence, major earnings is expected from vietnam in 2019. With current price so low, if now is not the best time to get the RSP done, then when ?

CharlesT, which part of my analysis is untrue? Please correct me. Thanks.

In June 2016, the EGM approved the 5 years LTIP, which may be extended for another 5 years, comprising of Share option and SGP (RSP and PSP). The later are given to employees for FREE, provided that the FREE portion shall not exceed 60% of the total allocation under the LTIP. The maximum number of shares to be allotted under the LTIP is 15% (not 30% as alleged by hng33) of share capital at any given point in time during the LTIP period.

In May 2017, 24,500,000 shares were granted under the share option at RM1.40 exercise price. 12,000,000 of which were allotted to directors and has been exercised entirely.

Accounting standard IFRS 2 requires an entity to recognise share-based payment transactions (such as granted shares, share options, or share appreciation rights) in its financial statements, including transactions with employees or other parties to be settled in cash, other assets, or equity instruments of the entity.

Therefore, investors would have already factor in the potential charges to P&L from the LTIP as determined by the market price and the quantum of the grant.

In this case, a very large portion of the LTIP was granted by way of RSP. Around RM19m (38m x RM0.51) will be charged to P&L in Q1 2019. The amount is not spread over a certain number of periods as all RSP are fully vested on 8 Feb 2019. This is an unusual practice as RSP usually has multiple vesting periods to encourage employees to stay longer. Why?

Andy gets 2 out of 3 shares granted, and his family members probably get majority of the balance.

I m not here to discuss ethical issues. Personally, I feel that the RSP has deviated from the purpose and intent of the LTIP which is to motivate “employees“ not bosses.

Back to the point why now and in such hasty manner? The answer, of course, lies in the benefits of such doing.

From the company’s stand point, it gets to charge off the entire RSP at around RM0.50 in one go. Otherwise, it needs to estimate the future value of the RSP which should be higher and apportion the higher charges over the vesting period causing lower profit in future financial reporting.

From recipients’ (Andy and family) stand point, the RSP grants will attract personal tax based on the market value of the grants at the point of vesting. It is likely that the grants will be valued around RM0.50, hence much lower personal tax charges compared to early 2018 when the share price was around RM1.80. If the RSP has multiple vesting periods, the recipients will have to pay higher taxes for portions vested at higher market prices in future. Thus, higher personal taxes.

Conclusion : The timing of the grant at current low price regime benefits the company in term of lower charges to P&L. It benefits the employees in the form of lower tax liabilities.

Why has Andy decided to grant a very substantial portion of RSP with just 8 days SINGLE vesting period ? ..... logical thinking … Is Andy expecting the share price to continue moving higher from hereon thus taking advantage of current low price to minimize his tax payments on his RSP ?

Offering Restricted Share Plan (“RSP”) now is actually good for the company as well as Andy. I shall explain later ......

newbie8080, It has already dropped from RM1.84. Of cource, it may drop further. The big question is whether you are confident to buy even at lower price.

If you are a strong believer, you wouldn't mind the short term fluctuations. Otherwise, you should not bother to look at it anymore. Hope you will find a better stock elsewhere.

http://www.chinatradenews.com.cn/epaper/content/2019-01/17/content_57691.htm

newbie8080, Jaks is for those who believe in the long term value of the power plant. For those who are doubtful, like you said, should just sell and move on to other stocks.

However, it seems that a lot has chosen to stay even until this day including those in doubt. why ?

Because the vietnam ipp is just too huge to ignore.

Jaks Hai Duong power plant latest development.

http://www.sohu.com/a/289260148_120065163

In real life, CPECC is handling all the finances of JHDP as well as the construction of the power plant.

Mrpotato88, jaks 30% JV, JHDP, will have to pay the penalty to the vietnam gov't. However, its main contractors, CPECC, will have to pay JHDP for delays.

Mrpotato88, the entire construction of the vietnam power plant is handled by CPECC. Jaks is merely doing the book keeping for its portion of the works.

I thought the company has indicated clearly that RM25.5M will be charged off in Q4 2018 ????

MR ANG LAM POAH (a company director) acquired 200,000 shares at 0.557 on 10-Jan-2019.

http://www.bursamalaysia.com/market/listed-companies/company-announcements/6035005

MR ANG LAM POAH (a company director) acquired 200,000 shares at 0.557 on 10-Jan-2019.

http://www.bursamalaysia.com/market/listed-companies/company-announcements/6035005

This is a compilation of my almost 2 years of research. Some are extracted from bursa announcements. Some are from news media, and some are from research papers done by professors who has access to restricted information. Earnings estimated are based on simple mathematics which only aims to provide a general idea of the potential of the power plant.

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tgorange Thank you so much DK66, very useful information. Can I know where did u get the source from, thx
14/01/2019 22:42

越南当地时间2019年1月4日15时38分，公司总承包的越南海阳2×60万千瓦燃煤电厂工程4号锅炉汽包顺利完成吊装作业。至此，海阳项目4台锅炉汽包已全部吊装就位，标志着该项目4台锅炉已全面进入本体安装阶段，为下一步锅炉水压试验打下了坚实的基础。

为确保汽包吊装工作的顺利进行，海阳总承包项目部精心组织，统筹协调，科学布置吊装现场，进行安全交底、技术交底。汽包吊装过程中，项目业主、总承包项目部、监理及施工单位各级管理人员全程旁站，最终安全顺利的吊装至锅炉房52.67米指定位置。此前，1、2、3号锅炉汽包分别于2018年5月10日、6月24日、12月20日完成吊装。该工程锅炉汽包自重184吨，直径为1.84米，长度为24.19米。

越南当地时间2019年1月4日15时38分，公司总承包的越南海阳2×60万千瓦燃煤电厂工程4号锅炉汽包顺利完成吊装作业。至此，海阳项目4台锅炉汽包已全部吊装就位，标志着该项目4台锅炉已全面进入本体安装阶段，为下一步锅炉水压试验打下了坚实的基础。

为确保汽包吊装工作的顺利进行，海阳总承包项目部精心组织，统筹协调，科学布置吊装现场，进行安全交底、技术交底。汽包吊装过程中，项目业主、总承包项目部、监理及施工单位各级管理人员全程旁站，最终安全顺利的吊装至锅炉房52.67米指定位置。此前，1、2、3号锅炉汽包分别于2018年5月10日、6月24日、12月20日完成吊装。该工程锅炉汽包自重184吨，直径为1.84米，长度为24.19米。

Majority of the tariffs calculations are based in US$. No Vietnam Dong devaluation risk.

The JV agreement provided that Jaks resources (JRB) shall execute subcontract agreement with CEEC in relation to its scope of work under the EPC Contract 2.

Jaks is therefore not involved in the construction of the power plant.