Hi DK66, appreciate your effort to create the chatroom. Please include me. Thanks

In terms of share price, does it make more sense to buy the Mother share now?

Warrants 1.18 0.64 = 1.82
Mother share 1.45
Even attaching a 10% premium to the warrants, the warrants is still overvalued compared to the Mother share
1.82 - (1.45 x1.1) = 0.22 (rounded)p

The CEO and some in the management has a significant stake in Jaks and the warrant as well. So the CEO and management is risking their money as well. Doesn’t seem to be a paper exercise

Sslee. Your points are valid however, DK66 is already kind enough to have state his calculation logic here to show the potential of the IPP.
Whether the others who saw the information shared went to do some research online to verify the information is another thing. If they didn’t do the research and verify all the information, it’s natural they will feel resentful because they would not have the conviction to hold Jaks even through the great fall provided that they are Long term investors.

If DK66 were to spoon feed and lay out every single source of information and number and jaks failed. I believe he will be another KYY drawing all the anger even though he has sincerely shared so much.
The culture investing is that people like to be given everything and do not give back. Moreover, if anything goes wrong, start blaming others instead of taking responsibility for their own decision to press the buy button.

DK66, just to add one more person to be thank you list. I have benefitted much from the information and methodologies you have shared here.

You have helped me a lot in my research for this counter.
I would hope you can continue sharing

Thanks DK66

I see. I didn’t know such an arrangement existed.
Was this arrangement disclosed anywhere?

Jaks holds EPC contract 2 which is only handling the exterior portion of the powerplant like the ash processing areas and cola belt etc so if through China’s reporting you can estimate the progress of Jaks. Moreover, CPECC’s building progress is more important than Jaks because they are the ones installing the core of the power plant.

Post removed.Why?

The power plant project’s profits will all be recycled into investment to pay the Contractors and accelerate the progress of the plant. That’s why is jaks also actively trying to sell off its other assets to raise cash and sustain its local operations.

Also, CPECC jaks China JV partner is the main factor in the construction speed. They have completed similar scale projects in China and finish ahead of schedule and based on the photos they have uploaded it’s seems that they are accelerating the progress now.
Jak’s don’t need to be considered in the completion of the plant because it’s EPC contract likely is not the most critical parts of the plant.

Dk66 and Kcc. I would like to thank you for the insight discussion above.

I hope to join in your discussion if it’s possible. My email is yikhoon93@hotmail.com.

However, if not possible. My question is this.
What would be the funding options for jaks right up to 2020?

From the disclosures, I would imagine that jaks with profit recycling into the JV would be relatively safe to fund the IPP and from the management’s past actions of committing to this project. I believe this would be the course of action they would take.

However, the various other segments are draining cash and pulling down results fast too. (50m BG and Evolve Mall that are idle assets waiting to be sold). Given that the share price has fallen significantly and jaks is in need of cash.

Either they would be issuing more warrants to cover the GAP which cause more significant dilution or they would need to find other sources of funding since the share price is unfavourable.

Appreciate any comments on my logic. Thank you

Might be a trivial question but
Why would the management want to do such a dilution since they don’t even own as much shares? Doesn’t seem much for them to gain from this deal

DK66, can you quote the source for the Vinh Tan maintenance fee and earnings? I’m interested to know more how power plant owners earn from the projects
Thanks