“You can’t make a good deal with a bad person.” ---Warren Buffet

Agreed... i think he is selling but slowly.....

Thin about it... IF JAKS continue to reject KYY request to be in the Board. Do you thin KYY wish to remain as substantial shareholder?

Sure, he will sell his shares "eventually".... when he sell,....the price will be like Hengyuan.....

Why I’m not buying JAKS because I don’t trust the CEO:

1. Jaks just sold Subang Jaya property, now they need to raise money again via private placement. And, they did the PP last year.
2. IF Star kept changing the design, the management should have asked for extension of time. Even amateur should know how to deal with design changed.
3. Evolve mall – The mall is dying. Potential investor should visit the mall. With such a good location, they cant even manage it well. Don’t know how to manage it at least engage the external mall specialist to manage it.
4. How can they refuse to let 30% shareholders to be represented in the Board. Even UMNO also let MCA be represented in Cabinet. Worst than UMNO…

Can you invest in a company with the management team worst than UXNO??

Mr. KYY had requested be in JAKS board...what is the status?? anyone can advise?

All these changes would require more time and expenses. Jaks had to alter the architectural and structural engineering design drawings for submission to the various Authorities’ approval. REMEMBER THIS LOH..!
IF STAR CALLED FOR CHANGES IN DESIGN, JAKS BEING CONTRACTOR CAN ASKED FOR EXTENSION OF TIME AND ADDITIONAL COST REIMBURSEMENT, IF THIS IS NOT GRANTED BY STAR, JAKS CAN REFUSED THE CHANGES AND STICK WITH ADDITIONAL DESIGN MAH..!!

TRUE!.... BUT how come JAKS did not ask for extension of time??

Anyone can advise on MQREIT gearing?? Thanks

approx 36% if not mistaken. i saw somewhere but cant remember exactly...

consider "insider trading"????

25 years of recurring income from its power plant will kick in by 2020. With exchange rate of 3.89, the annual 40% profit of at least USD149.48m is going to be RM232.43m.

The above extract from :[JAKS RESOURCES BERHAD, why I bought into it] James Share Investing

But According to KYY : http://klse.i3investor.com/blogs/koonyewyinblog/135600.jsp

Total sale is USD 87,600 X 24hours X 360 days X safety factor of 70% = USD 530 million per year.

Is it possible the profit margin for power generation is above 28%?????

Can anyone comments??

May I know, how you get this number?

25 years of recurring income from its power plant will kick in by 2020. With exchange rate of 3.89, the annual 40% profit of at least USD149.48m is going to be RM232.43m.

According KYY estimation, the total revenue is only USD530M...http://klse.i3investor.com/blogs/koonyewyinblog/135600.jsp

Angel of KLSE 大马股仙 local vendor cannot cost down, proton import component parts from china
19/02/2018 11:5

If you are in OEM industry,... you should know that Malaysia OEMs are very cost effective and with good quality control...

Look at VS industry,...EG...Oriental holding OEM subsidiaries..and etc...

China can produce cheap components...because they got VOLUME... In manufacturing...more vendors are getting almost same material and labor cost ... Apparently, Malaysia energy cost are cheaper compare to China... Thus, compare with China producers, the main disadvantage is production volume...In manufacturing, the more you produce, the lower your cost per unit...

Today, China is "world factory" is because they have BIG local market, thus BIG production volume...and therefore lowest cost per unit...This the main reason why Huawei,.. Xiaomi... Lenova and etc can become global brand name less than 10 years in the market...

Proton only plan to introduce Geely car model (BOYUE) end of the year... can Proton wait until end of the year???

Proton should localise this model in China Geely plant... and not letting Proton takes their ""sweet time"" to localise it...

Proton takes more than 12 months to localise a car... I was told, Toyota can develop a car from scratch (drawing) within 18 months...

From this project, we should realise the main problem is Proton and not the vendors... Dr. Li should focus of improving Proton efficiency and NOT keep barking the wrong trees...

Malaysia chinese community regard highly of Dr. Li...... Please dont let us down...

Thus, If the estimated production volume is 100,000...then, the mould and development cost per car is approximately RM500.... Ask yourself how much you pay to replace a front bumper from replacement market (retail market)????

hope this example... we can understand the main problem is not vendors are not cost effective.. BUT, is because PROTON car is NOT saleable..... That is the reason why... the ministry keep saying Proton needs to export...

BUT,,, IF Proton car is not saleable in Malaysia, can they sell in other countries.... FYI, Proton car cant even sell in Indonesia......

My concern is DR Li dont seem to understand the real problem of Proton... and just "hamtam" the vendors....

The immediate way to revive Proton is to increase the Proton volume... and faster way is to "re-badge" Geely small car , make it suitable for Malaysia climate..and introduce to the market ASAP...

Focus to cost down vendor are not effective, as the main cause of problem is volume NOT vendor...

Angel of KLSE 大马股仙 local vendor cannot cost down, proton import component parts from china
19/02/2018 11:5

BUT.... Proton has a contract with the local vendor...If Proton decide outsource from China... They need to compensate the local vendor for the remaining "un-sold "volume... Can Proton afford to compensate with current tight cashflow...

Secondly, based on current Proton volume (less than 80k per annum)... you think vendors are stupid enough to invest in new mould and development cost?

In Car industry... volume is vital... Toyota can produce 1 million car per annum per model... thus their mould and development cost per model are very low compare to Proton... this is the main reason why their cost is extremely competitive.

Look at Proton... their average car production per model is approximately 10K- 20k.... How to compete??? FYI, mould and development are very costly... give you example: mould and development cost to produce a car front bumper is more than RM50 million....

Proton had entered purchase agreement with components manufacturers (OEM vendors) with "agreed and fixed" price at agreed PRODUCTION VOLUME.

FYI, To produce Proton required components, OEM vendors need to invest up front in design and development of moulds and etc. The components are custom made to meet Proton design, specifications and requirement. Today, after Geely took over the manufacturing management, Dr. Li announced that Proton vendors have to cost down 30% from the agreed selling price......

From business point of view, do you think is it fair to the vendors that had invested million and million ringgit for the moulds and other development costs...Out of sudden, they have to reduced their selling price and at the much lower production volume....

Imagine you are house builder...build a house follow your client design ad specification... after completion, the client only agreed to pay 70% of the agreed price.....

What Proton is doing now is basically BULLYING their OEM vendors.......I

I therefore urge those that NOT understand OEM business ..... please do not simply condemn Proton vendors.......

can somebody update on land sale to Boustead? has Boustead AGM approved the land purchase??.......Thanks

Courtesy in a forum is very important.

Personal attacks which create a extremely “negative” atmosphere and subsequently everyone in the forum will be negatively affected.

I hope we can give some respect to “Old Man”….and to whoever that try to share his view and opinion in this forum… No one is obliged to make us RICH… As an adult, we should know what to buy and when to sell…IF NOT, …don’t waste your effort in stocks market…

Please do NOT BLAME others for losing money…and please KEEP all the ‘credit” to yourself when you make money…

CEO was director in Big 4 Accounting firm... experience in M&A and successfully sold Proton to Geely..

To me, if the share price remains underperform... he may suggests to Tan sri to turn this counter private... like Tradewind...

Anyone can advise on MQREIT gearing?? Thanks

The next question is can 30% cost saving without significant sales increase, save Proton???....

Secondly, why take so long (Expected End December) to bring GEELY SUV (BOYUE) to Malaysia and ASEAN market?? Need to take more 12 months to convert left hand to right hand drive??? Does NOT sound quite right for China standard.

9,600 employees..Say RM4000 per employee....plus 11% EPF...plus 1 month bonus....thus Proton has to bear aprox RM550 M per year only for employment cost....

Proton is selling approximately 71000 car. Say average Proton car price (Ex factory) is RM50,000, then give revenue of 3,550 M. If Proton gross margin is 10% ( low margin due to low production volume), then Gross profit will be 355 M.

Employment cost alone is higher than gross profit. No wonder Proton is making billion Ringgit LOSS per annum…

Dr. LI is technically competent... BUT, to manage PROTON, you need a competent CEO with good political sense. ..

Funny Confirm can do it la. My friend company running trading business which sell car spare parts to proton..the margin is 100% de. Source from china and sell to proton. Some even more than 100%. So Mr. Li request 30 percent lower is peanut la.
01/02/2018 14:41

My comment:

Spare part business & OEM business are different kind of business... Go to check with the financial statement of Proton vendors such as EP manufacturing, APM.... then you will know how much they made in last 5 years... During golden years before financial crisis, the Proton vendors did made GOOD profit... BUT... NOT NOW... I knew it as I'm in this industry for long....

Thus, to cut down 30% ....it is IMPOSSIBLE for local vendors.... NO vendor can comply.... IT is the tactic to replace local vendors with CHINA vendors... The local companies are "screwed" by GEELY, BUT, MO1 does not care as it is DR. M baby....

BUT,.... Many Proton vendors are also UMXO key supporters... directly linked with their ministers....

At the end of days.... Proton is still a political linked business....Dr. Li dont seems to understand the sensitivity of this business in Malaysia...He gives discount to Hokkien association...He commented on Proton canteen food...See, the responses from Malays community....Thus, 30% cost down is just another "gimmick"....that going to screw up him self...PROTON has changed how many CEO since DRB took over?? 3 CEOs in 2 years.... PROTON is super HOT potatoes....That's why GEELY own top management also dont want to be CEO... (Dr. LI is engaged from Non GEELY companies)

Everybody know Proton is over staff, Can any CEO retrench them???

Electricity generation business is one of the most predictable business in the world. CEO, Ang Lam Poah, aware of the terms of the PPA, would be happily selling to KYY if Jaks is overvalued.

My comment:

1) Mr. Ang is CEO of the company...and the family founded the business. As the CEO and major shareholder, you wont sell the company even it is over valued.

2)The vietnam power plant is good long term business for JAKS...BUT, the current price (RM1.83) has already reflected the fair value of the future business..

That's why... I said... Mr. KYY got excellent business sense...

Malakoff & YTL Power net profit margin are 6.02 and 7.58 respectively.... In IPP business, 7.58% is consider very good yield as it is regarded as low risk business.

Normally, for long term (25 years) & "guaranteed business", the government will not let the investor make too much money... IF the china investor can give JAKS 400M during construction period, meant the construction value is already been "Jack Up", Right?

Mr. KYY bought JAKS when the price was below RM1 (thus based on "future profit", the PE is around 5) and now is RM1.83. He has made 80% profit within 1 year. It is great investment for him but NOT late comers.....

Thus.... it is too late for us to buy NOW !!!.. We should listen to Mr. KYY, when he started to promote JAKS, year ago...

Please read the below link.
https://klse.i3investor.com/blogs/koonyewyinblog/145620.jsp

I wonder why Mr. OTB not buying JAKS even though he joined Mr. KYY to visit Vietnam Power plant.....

Is it because the number (PE) and the fundamental value of JAKS does NOT looks RIGHT to him.. To me he seems to be very well versed in Value Investing.....whereas, Mr. KYY is famous for his excellent business sense....

Thanks for your response!.....

BTW,... Hengyuan current PE is only around 5.......Might as well bet on Hengyuan....right??

Jaks Power Plant in Vietnam
--------------------------------------

Expected revenue = USD 530M per annum (From KYY estimation)
If 10% net profit margin (IPP average margin), thus Net Profit will be USD53M.
40% of shareholding will give Jaks RM 84.8M per year (USD53Mx 40% @4 exchange rate)
Market Cap is RM902 M(at 1.83) will get PE of 10.63…

Is it a very fantastic counter based on Vietnam power plant earning? I dont understand why someone said the price will be double or triple....

Please feel free to comment on my calculation and advise…. Thanks

The question is which local vendor can comply with 30% price deduction??...

Purchase part directly from China for EXISTING models are practically and manufacturing impossible...Because,
1) proton already has a legally biding contract with the local vendors...is Not up to Proton to amend it unilaterally....
2) proton is currently enjoy some tax and custom duty advantages..directly source from China vendors will affect the above advantages.
3) Proton have not fully payback most of mold investment for the parts/components, to cancel the purchase has to reimburse the mold investments to the vendors...Does Proton has the cash flow to do it??

Proton had tried this method many years back....BUT, Not much cost deduction had been achieved.... IT IS EASY TO MAKE SUCH ANNOUNCEMENT....but, CAN PROTON IMPLEMENT IT SUCCESSFULLY ???

die...die...today down again....

agreed.....just sold it ALL.....Bo chow si

BUT....just to "goreng" the shares....may be it is OK!

impression city project may not be that successful............China tourist may not find the show that spectacular and eye opening.... And, can local tourist appreciate the impression series...??

***印象·刘三姐”破产：公司估值1.7亿 债务达15.8亿****

http://finance.sina.com.cn/chanjing/gsnews/2018-01-24/doc-ifyqyesy0433894.shtml

from the numbers given, this company look OK..... My concern is conversion of preference share, will NTA dilute after conversion?? Any "sifu" please advise on this counter...?? Thanks

MoneyUp888: where is your source??.... do your homework....

Thus, YTL can only get a small package from the consortium.....Not, from the government...... The margin will be miserable....

http://www.theedgemarkets.com/article/rm89-bil-gemas-jb-double-tracking-project-spin-jobs-locals

The project was awarded to A consortium of three China-based companies — China Railway Construction Corp Ltd (CRCC), China Railway Engineering Corp (CREC) and China Communications Construction Corp (CCCC) — received the letter of award from Transport Minister Datuk Seri Liow Tiong Lai last October.

MoneyUp888: where is your source??

it don't seems to be common practice to review that the company has been awarded the project during the interview BEFORE the announcement.... thus most probably is a mistake......could be "wrongly heard or interpret"....

YTL should be more responsible and come forward to clarify the news.............

Hopefully, not buy on rumour ; sell on FACTS...

BUT, how come NO announcement from the relevant authority or YTL?? Nikkei published the news on 12/12...

May be Japanese reporter cant understand Francis Yeo's English .......

YTL Corp's order book expected to balloon with Gemas-JB rail project, say analysts

Confirm???? Why EPF keep selling???? just rumour??? or mistake from NIkkei news???

YTL Corp's order book expected to balloon with Gemas-JB rail project, say analysts

Is it confirm award to YTL???

i wonder wthout R&D grant, is DRBHicom making operating profit?

“You can hear rumors. But you can't know them.”

Is dangerous to buy based on RUMORs

sharemakers: Time to collect.

If u wish to keep for 10 years....

http://www.sinchew.com.my/node/1661454/%E6%9E%97%E7%91%9E%E6%BA%90%C2%B7%E7%BB%8F%E6%B5%8E%E6%9C%89%E9%82%A3%E4%B9%88%E5%A5%BD%E5%90%97%EF%BC%9F