Posted by DK66 > 2020-05-02 14:32 | Report Abuse

Aseng, I can't prove you wrong

--------------
Aseng so, from we had gathered
the deal is safe for all parties
whether Jaks has 50% now or 30% later
dividend is just the matter of time
because both parties wish to bring money home


DK66,
am I right ?
02/05/2020 2:27 PM

Posted by SALAM > 2020-05-02 16:56 | Report Abuse

Mr DK66, maximum What % of profit in the JV can be declared as dividend? 50%,100%?

Posted by DK66 > 2020-05-02 17:33 | Report Abuse

Dividend distribution is generally subject to the availability of general reserve. However, the company can make capital distribution. In this case, as the power plant will be handed over to the Vietnam government after 25 years, the equity capital will be returned to the shareholders in the form of capital distribution.

---------------------------------
SALAM Mr DK66, maximum What % of profit in the JV can be declared as dividend? 50%,100%?
02/05/2020 4:56 PM

Posted by firehawk > 2020-05-02 23:14 | Report Abuse

Actually the 30% or 50% reporting has significant impact,
1. the amount is in the quantum of 100m.
2. the P&L report summary appears as the cover of announcement to Bursa, it will catch public investors eyes.
3. this profit is real profit, it can be used for EPS, P/E ... calculation.

if continue for 3 yrs, it surely affects the stock valuation, lke P/E etc. ... many ctrs in bursa, although not paying dividend, as long as report profit, the price can sustain, not to say a very good profit.

Posted by firehawk > 2020-05-02 23:21 | Report Abuse

similarly, regardless JHDP paying or not paying dividend to JAKS, the profit reporting itself has direct impact on share price.

Posted by CT > 2020-05-02 23:34 | Report Abuse

Invest so much money not logic no return la. Sure got dividend la..

Posted by DK66 > 2020-05-02 23:55 | Report Abuse

firehawk, you do have a point there. Though I m tempted to think that share of profit will be based on the equity interest, my past experience as a professional auditor with KPMG Peat Marwick, Singapore would not allow me such believe.

It is always the substance of any arrangement that determines the accounting treatment of a transaction. Since the RCPS ranks pari passu with equity shares in all dividend payments, CPECC always get 70% of whatever that is distributed out of JHDP.

What's remain within JHDP regardless of being 50% owned by Jaks currently will become 70% owned by CPECC in 3 years time. In view of this, personally, I do not think the auditor will agree to 50% sharing of profit to be recorded in Jaks' books unless the management has reasons beyond my knowledge to convince the auditor otherwise.

Anyway, lets wait for management response to OTB's query.

Posted by firehawk > 2020-05-03 00:06 | Report Abuse

:-) :-) :-)

Posted by DK66 > 2020-05-03 00:08 | Report Abuse

In any case, the profit sharing of 30% is already significant enough to cause a boom in Jaks' share price given that the price is only around RM1 currently.

Posted by DK66 > 2020-05-03 00:16 | Report Abuse

firehawk, I wish to express my appreciation for your participation and comments in this article.

Posted by firehawk > 2020-05-03 00:24 | Report Abuse

I appreciate yr open mind in accepting comments, and the patient on entertaining the comments, salute!

Posted by OTB > 2020-05-03 10:51 | Report Abuse

Posted by DK66 > May 2, 2020 1:35 PM | Report Abuse

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% ?
-----------------
Ans :
Your request had been sent today.
Please wait for reply.
Thank you.

Posted by DK66 > 2020-05-03 11:06 | Report Abuse

Dear OTB, thank you

-----------------
Ans :
Your request had been sent today.
Please wait for reply.
Thank you.
03/05/2020 10:51 A

Posted by Casino123 > 2020-05-03 13:30 | Report Abuse

Still can buy this share or not?

Posted by DK66 > 2020-05-03 13:40 | Report Abuse

Casino123, is it not wise to trust the advice of anyone in i3. The promoters will say YES. The Naysayers will say NO. You have to listen to yourself.

Posted by OTB > 2020-05-03 14:07 | Report Abuse

Posted by DK66 > May 2, 2020 11:55 PM | Report Abuse

What's remain within JHDP regardless of being 50% owned by Jaks currently will become 70% owned by CPECC in 3 years time. In view of this, personally, I do not think the auditor will agree to 50% sharing of profit to be recorded in Jaks' books unless the management has reasons beyond my knowledge to convince the auditor otherwise.

Anyway, lets wait for management response to OTB's query.
-----------------
Dear DK66,

The auditor confirmed the profit taken into consideration should be 30% only.
Thank you.

Posted by DK66 > 2020-05-03 14:58 | Report Abuse

Dear OTB, thank you for the prompt reply.

The answer is as expected and we shall have no more doubt in this regard though some may feel disappointed.

Thank you so much for your help.

------------------
OTB Posted by DK66 > May 2, 2020 11:55 PM | Report Abuse

What's remain within JHDP regardless of being 50% owned by Jaks currently will become 70% owned by CPECC in 3 years time. In view of this, personally, I do not think the auditor will agree to 50% sharing of profit to be recorded in Jaks' books unless the management has reasons beyond my knowledge to convince the auditor otherwise.

Anyway, lets wait for management response to OTB's query.
-----------------
Dear DK66,

The auditor confirmed the profit taken into consideration should be 30% only.
Thank you.
03/05/2020 2:07 PM

Posted by brushsoo > 2020-05-08 13:41 | Report Abuse

Hi DK66,
Thanks for your contribution. I may not follow fully all your discussions.

Just wanted to clarify, the full conversion of RCPS entitle CPECC's equity another 40% of JPP, hence the equity interest is at 90% 3 years after COB?

How the 70% interest of CPECC, instead of 90% come into picture?

Posted by DK66 > 2020-05-09 10:27 | Report Abuse

The conversion of the RCPS will give CPECC a NET total of 40% interest in JPP.
This mean the dilution of original equity interest from 100% to 60%, 30% each to Jaks and CPECC. Therefore, CPECC will ends up with a total of 70%.

---------------
brushsoo Hi DK66,
Thanks for your contribution. I may not follow fully all your discussions.

Just wanted to clarify, the full conversion of RCPS entitle CPECC's equity another 40% of JPP, hence the equity interest is at 90% 3 years after COB?

How the 70% interest of CPECC, instead of 90% come into picture?
08/05/2020 1:41 PM

Posted by brushsoo > 2020-05-12 10:06 | Report Abuse

Got it, thanks DK66!