The licence from the government is so precious and valuable,yet Tadmax share price is worse off than before.If the current partners like the korean are not able to help,the company should tender the project wholesale on turnkey to the mainland chinese like in the case of Jaks which will come with financing by chinese banks .The company will not need a rights issue which neither it nor shareholders will like given its perpetually low price.The chinese power contractors are known to complete their projects ahead of time and technically sound.Tadmax management should not wait anymore
Using Jaks and MFCB model Tadmax can join the tender for jobs as sub contractor to get a slice of the pie and have continuing income while waiting for the power plant to be ready thus keeping up interest in its share
MFCB price at 5.48 was 1.66 at the start of its Don Sahong power plant.Jaks 1.28 now was 0.73 in 2016 when it signed up CPECC ,the turnkey contractor from China.Tadmax should consider taking in a state owned China power plant builder for its technical competency and financial strenght to jump start the power project
Just compare Tadmax with Jaks and both in very similar biz; property development and IPP. Tadmax property biz is not a drag for the company unlike that of Jaks. Tadmax own 40% of IPP in Malaysia with strong local and foreign partners and will not be expose for forex risk and not to mention foreign political country risk. In comparison Jaks only at least currently own just 30% and with exposure to foreign exchange risk and political risks. Market cap of Tadmax is only currently about less than RM 220m only whereas that of Jaksis roughly RM 830 m. On top Jaks has warrants that will be dilutive to current shareholders and not to mention Jaks had issue large amount of free shares to its management!
Coincidently both Tadmax and Jaks IPP have same capacities of 1,200 MW. However Tadmax power plant is gas fired and therefore cheaper to build and easier to operated and environmentally cleaner compared to that of Jaks coal plant.
Karlos,you made the case but Tadmax's management seems not able to move the company forward.Why have technical partner not able to do its job.All shareholders have no appetite for a rights issue to provide equity for the power project.It really need ala Jaks formula of a State owned China power engineering company with impressive record which can provide financing as well to handle the project
Volume low bc no interest in the company due to no confidence in the management to take on such a massive project.By comparison the company with such a project, its shares should be much sought after.
The IPP project had only very recently been officially approved. The construction will take about 3 years only as it is much simple plant compared to coal plant and commercial operation is targeted for 1 January 2024, four years from now. You can not simply construct a plant as and when you like as it is an IPP which has to comply strictly with the requirements and contracts with the regulator and the off taker. For your info KEPCO is the largest power utility company in South Korea with vast experience in a no of thermal plants including nuclear.
Tadmax wishes to announce that the Company together with Worldwide Holdings Berhad and Korea Electric Power Corporation have today submitted to MESTECC its acceptance of the Letter of Notification in relation to the development of Combined-Cycle Gas Turbine Power Plant (“CCGT”) with capacity of 1,200MW at Pulau Indah, Selangor Darul Ehsan to be undertaken by the Company’s project company, Tadmax Indah Power Sdn Bhd (“TIP”) (“the Project”). Together with its acceptance, TIP has also deposited Banker’s Cheques totalling RM30 million as Performance Bond.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
SarifahSelinder
3,766 posts
Posted by SarifahSelinder > 2020-01-07 08:58 | Report Abuse
Klau 63 acres tu dah stated at market value kat akaun xda short term gain IPP u