CK Wong, if you are referring to something more recently, could you provide the source of the rumour ?

CK Wong, that was before it secured CPECC as partner. It also approached Tenaga.

Mr Koon, Thanks for your clarification. Wish you all the best.

There are so many attracted to Jaks despite management giving very little hint of its potential future earnings.

To attract foreign investment, Vietnam gov't needs to promise sufficient returns to these BOT projects. In order not to overburden the gov't with "take or pay" kind of payment structure, The vietnam gov't guaranteed a minimum payment (capacity payment) on the capacity built which gives the investor a minimum secured return on the capital invested. And additional payment (energy payment) based on the power consumed, giving the investors additional revenue to ride on the economic growth of vietnam.

Management has indicated 12% IRR. The tariff guaranteed capacity payments which cover all bank borrowings plus interest as well as giving a return on capital. Since the project is on 75% bank borrowings which carries about 5 - 6% interest rate, it provides for a huge leveraged return on the equity capital of the owner. That is why 12% project IRR may not seen appealing by itself, but the debt leverage may lift equity IRR to well over 30% on equity capital.

Moreover, there is energy payment to provide additional revenue on power generation. As this is unpredictable at this preliminary phase, the management might not have included this in their 12% IRR projection.

At RM1.10, Jaks is worth less than RM600m, no wonder investors rushed to buy despite stock free falling under panic and force sellings, bad publicity and bad news.

No business is without risks. The question is "is the price worth the risks ?"

Nikmon, according to Jaks, its claim on variation costs is much higher than RM50m.

http://www.theedgemarkets.com/article/jaks-resources-allays-concern-over-impact-star-dispute-shares-fall

So, the naysayers are actually helping KYY ??

So, when KYY said this is golden opportunity, maybe he wants his haters to twist it into desperate attempt by him and induced further selling for him to buy cheap.

If KYY is cunning as described by some, he could have used margin calls to cause panic selling to allow him to buy more at cheap prices. So, why believing him when he said he had margin call?

There were around total of 100m shares traded after KYY announced force selling. Who has the muscles to buy ? Shall know soon.

If anyone has come to the stock market believing that it's an easy place to get rich quickly, they are really naive. Only 1 in 20 made it.

Jaks is probably the most hated stock in malaysia now, if not the world. logically, you get tired of talking about a junk stock after a while, but the hatred seems persistent. Is it the stock that they hate so much or the theme person ? If it is the stock, they will just sell and go away.

Why hate KYY so much ? Most likely these people were his followers who lost money in some stocks and felt betrayed. Now coming to Jaks to haunt him, happy to see him suffering. These people tend to go away when the stock is rising as they couldn't bear to see KYY laughing to his banks.

Some are just here to instil fear in order to buy cheap.

Jaks local projects is causing trouble now, so it must be the Vietnam project that is drawing the interests. If vietnam project is deemed to fail as foreseen by the naysayers, It will be devastating for Jaks even dragging it to bankruptcy by the huge project borrowings. The target price should be 0, not 80,70,60,50,40,30 cents. It would spell huge trouble for CPECC as well.

None of the BOT projects in vietnam has failed. Mong Duong 2 and Vinh Tan 1 were the latest BOT projects to have completed and started operation. Mong Duong 2 was profitable since operation in 2015.

To deem KYY will fail in Jaks by quoting xinquan and mudajaya is hilarious.

Based on international accounting standard, profit recognition has to be revenue less cost, not bank borrowing less construction cost.

Jon Choivo, yes, possible.

If you don't regularise margin call, it will lead to force selling

To my knowledge of margin account. All margin call must be regularised by T+3. The lowest close happened on 30/7 at RM1.01, which mean margin call, if any, will have the biggest magnitude on that day. Today is already T+4. There shouldn't be anymore margin call unless Jaks closes below RM1.01.

永新一期项目位于越南平顺省，由中国南方电网有限责任公司、中国电力国际有限公司和越煤电力有限责任公司共同投资，中国能源建设集团有限公司旗下的广东省电力设计研究院有限公司和广东火电工程有限公司联合总承包建设。该项目是中国企业在越南首个采用BOT（建设—运营—移交）模式投资的电力项目，在特许运营期25年期满后，将无偿移交给越南政府。

越南永新燃煤电厂规划建设两台62万千瓦超临界燃煤机组，全部建成投产后，每年可提供约80亿千瓦时的发电量，将极大地缓解越南南部电力紧缺的局面，满足当地125万居民的用电需求，助力越南经济社会发展。两台机组计划分别于2018年12月和2019年6月投入运营。如今，1号机组已提前5个月投入商业运营。

Vinh Tan 1 1200MW thermal power plant Unit 1 has began commercial operation 5 months ahead of schedule.

Jaks has been very quick in finalising corporate exercises. It is abnormal for it to seek extension for warrant right. Has fallen prices derail the intended purpose of the plan, or has the changing circumstances call for second thought ? Whatever the case maybe, there is now chances for the warrant rights to be cancelled.

That is why i said you have to do a lot of research to find out answers to your questions, not just wondering. Always assuming the darker side of the story will not help you getting the true picture. There are answers to some of your questions in the JV agreement with CPECC as announced to bursa. There are certain answers in the CPECC website. And you need to study the latest vietnam gov't circular to understand the tariff structure. Since you don't trust anyone here, you need to do some homework to be confidence.

There is no doubt that 40% of a US$1.87b power plant in vietnam will have huge potential earnings. However, you have to be comfortable enough to buy. Otherwise, you have to let it go.

Nobody is buying Jaks for its local project. It is the Vietnam Power plant that is luring everyone here ! Power generation business is very stable and easy to project. Just do some simple mathematical estimation of the potential earnings of the power plant, you won't be sitting waiting for 0.80,0.70,0.60,0.50,0.40,0.30 tp.

If someone is willing to pay 100,000 to build a house. He is to pay you 100,000 over 10 years plus interest. It only costs you 70,000 to build the house. Is the 30,000 construction profit real? Of course it is real. You will receive the profit over the next 10 years with interest.

There are more evils than angels in i3. All portray themselves to be the good guys here to help you. If you listen to the wrong one, you go to hell. The best thing to do is to analyse their statements, check their credibility, see thru their intentions. Never make decisions base on their words. Be responsible to your hard earn money.

It takes a lot of guts, analysis, and understanding of the business to be confident in a falling stock surrounded by corporate exercises and bad news. This is how big money is made. However, if you are wrong, you only have yourself to blame. Don't listen to others, do your homework.

It is easy to verify my statement, just check up all the qtrly reports. Look up for the revenues from vietnam, see if there was any increase QoQ.

bluebiznet, I hope you don't disappear when the power plant is completed.

Icon, you straight line projection on the vietnam construction profit does not reflect the accelerating pace of the activities going into 2018 and 2019. Based on the progress of similar power project in vietnam, it is likely to see 30% work done in 2018 and 50% in 2019.

Those said will down 70C 60C 50C 40C are aggressively buying.

Don't lose sight of the real fundamental drive behind Jaks' future prospects. Jaks caught everyone attention because of its Vietnam power plant not its pacific star project. Nothing has happened to the power plant since 6 months ago except getting taller. Just give it a simple thought. CPECC is definitely capable of completing the project. It is definitely very experienced in operating the power plant. None of the power plants in Vietnam under BOT has failed. How much is 40% of a RM7.6b power plant is worth to jaks? How much profit can a RM7.6b power plant rack in for 25 years? Jaks' market cap is only RM550m now. Still fishing for lower price ? Once the force selling is over, you won't be able to catch it anymore.

Disagree on few points;
1. The energy cost is on pass thru basis. Thus not affected by the fluctuation in coal prices.
2. The power plant will be managed by CPECC which is very experience in thermal power plant.
3. The EPC contracts were fully subcontracted to CPECC. No additional financing is required.

*does not impact

enid888, Jaks hai duong borrowed US$1.4b for the project. The interest cost has been taken into account when assessing the feasibility of the project. Whatever construction profit they made does impact the future prospect of the project.

When Jaks brought CPECC in as partner, it already it doesn't have the cash flow for the US$110m capital commitment. That's why the arrangement is such that the construction profit will make up of the capital commitment.

KYY's position is threatening the management. He has to pare down. Otherwise, management will continue to dilute his holdings. Now that he has shown to be friendly by reducing his stakes, the price should rise soon.

The construction profit from the vietnam plant is meant for the capital commitment.

Jaks placed out 10% shares to financial institutions in March 2017 at RM1.36, and another 10% in march 2018 at RM1.38. Both were completed in less than a month. 2 placements with 12 months would normally frightened off investors but not Jaks'. Why ? The investors must be attracted by the huge stable future earnings from the power plant. Jaks is now trading at 20% discount to the placement price, wouldn't the institutional funds buy more ?

Jaks Hai Duong power plant achieved financial close in OCT 2015. Jaks' EPCC contracts were fully subcontracted to CPECC. CPECC has vast experiences in operating thermal power plant.

It takes one who understand the potential of the vietnam power plant to appreciate the value of Jaks. Technical analysis can't measure future prospect.

When KYY bought Jaks, he must have saw something worth fighting for, definitely not just trying to be a director of Jaks. United States did not invade IRAQ for weapon of mass destruction but OIL. KYY spelled out clearly that he bought Jaks for its Vietnam power plant. I believe everyone is here for the same reason.

Jaks pacific star was already in trouble long ago but still haunting.... even when the project is very close to completion. Now the RM50m BG episode is causing a massive hit. Share price dropped from 1.83 to 1.04. RM430m market cap was wiped off. Reasonable ?

KYY drank too much Brandy XO until vomiting. He announced selling of shares to cover margin calls. The huge fear factor set in. His followers and those fear of vicious force selling cycle instinctively sold their holdings.

The Management did nothing. Maybe happy to see KYY offloading to become a lesser threat ? Will the management take advantage of KYY's margin calls to consolidate their positions ? Now KYY may not be able to subscribe for his warrants, his position will be diluted to under 20%. The management should be able to sleep peacefully now.

The dilution effect of the 2 private placements didn't stop KYY from keeping his holdings above 30%, but the warrant issue, the RM50m BG, and the margin calls finally brought him down. He admitted his mistake and pared his stakes. The infighting should end. After all, KYY has no intention to take control of Jaks. He is just an investor trying to profit from Jaks' successful venture into lucrative vietnam power industry for the purpose of his good deeds in helping the poor students.

Does the management wants to see Jaks price drifting lower ? Risking the entry of another alligator ? Jaks vietnam power plant could easily rack in more than RM200m of earnings upon operation. I bet the big guys are mouth watering at Jaks' current valuation. The power plant is only 18 months away from completion. It is too threatening for the management to leave Jaks at current valuation.

Last friday, 16m shares traded under huge fear factors and margin calls after KYY announced his sellings. But the sellings were well absorbed and price closed well off low. Who bought at time of panic selling ? It takes a lot of courage to catch a falling knife. Perhaps those who bought willing to risk at this low price for the huge prospect of the vietnam power plant.

When KYY bought Jaks, he must have saw something worth fighting for, definitely not just trying to be a director of Jaks. United States did not invade IRAQ for weapon of mass destruction but OIL. KYY spelled out clearly that he bought Jaks for its Vietnam power plant. I believe everyone is here for the same reason.

Jaks pacific star was already in trouble long ago but still haunting.... even when the project is very close to completion. Now the RM50m BG episode is causing a massive hit. Share price dropped from 1.83 to 1.04. RM430m market cap was wiped off. Reasonable ?

KYY drank too much Brandy XO until vomiting. He announced selling of shares to cover margin calls. The huge fear factor set in. His followers and those fear of vicious force selling cycle instinctively sold their holdings.

The Management did nothing. Maybe happy to see KYY offloading to become a lesser threat ? Will the management take advantage of KYY's margin calls to consolidate their positions ? Now KYY may not be able to subscribe for his warrants, his position will be diluted to under 20%. The management should be able to sleep peacefully now.

The dilution effect of the 2 private placements didn't stop KYY from keeping his holdings above 30%, but the warrant issue, the RM50m BG, and the margin calls finally brought him down. He admitted his mistake and pared his stakes. The infighting should end. After all, KYY has no intention to take control of Jaks. He is just an investor trying to profit from Jaks' successful venture into lucrative vietnam power industry for the purpose of his good deeds in helping the poor students.

Does the management wants to see Jaks price drifting lower ? Risking the entry of another alligator ? Jaks vietnam power plant could easily rack in more than RM200m of earnings upon operation. I bet the big guys are mouth watering at Jaks' current valuation. The power plant is only 18 months away from completion. It is too threatening for the management to leave Jaks at current valuation.

Last friday, 16m shares traded under huge fear factors and margin calls after KYY announced his sellings. But the sellings were well absorbed and price closed well off low. Who bought at time of panic selling ? It takes a lot of courage to catch a falling knife. Perhaps those who bought willing to risk at this low price for the huge prospect of the vietnam power plant.

Group T investors are everywhere, not just in Jaks. Anything specific about them in Jaks ?

Mr Koon, congratulate on your appointment. It is unfortunate that you had margin call. I m sure Vietnam power plant will proof all the critics wrong.

Just ask CPECC whether it would pay RM600m to buy out Jaks ..... Just another RM600m to gain 100% of vietnam power plant. Anyone thinks CPECC will hesitate ??

Fzank, you are likely to be disappointed with the outcome

Prices going up and down is a norm in any stock markets. It doesn't change the fundamentals of the companies. Beware of those trying to instill fear to buy cheap from you.

My advice is if you are not sure, don't buy.

Please study mudajaya carefully before making comparison. Are you suggesting if mudajaya fails, all other power projects will fail ??? what about mong duong II, Vinh Tan 1 etc ?

If talk can bring down a stock, then the theory might work. lol

There are lots of other power players willing to buy over the stakes from KYY. KYY will wait for the Vietnam plant to start operation.

Clouded by the bad news of the RM50m Bank guarantee, retailers lose confidence and price slides. Instinctively, they rushed to cut loss in fear of further melt down due to widely rumoured margin call of the major shareholder. No thoughts were given to the potential of the vietnam power plant which was the reason to buy Jaks. Vietnam project is still progressing as scheduled. However, management kept the future earnings of the plant in the dark. 2 private placements within 12 months has caused unnecessary dilutions. Right issues could have been called. The warrant issue to raise working capital for the vietnam project further aggravated the minorities causing sell out. It is widely known that the vietnam project has been subcontracted to china power group of companies, which requires no working capitals from Jaks. Andy Ang has around 10% shareholdings in Jaks. Is he satisfied ? After all, he is the one who materialises the vietnam project. Knowing the full potential of the project, will he take this opportunity to buy cheap ? With 40% ownership in a RM7.6b power plant, surely Jaks should worth much more than RM630m !

There is always time to buy. The only difference is the price.

feb 2020