Share price keeps dropping coz most people expect another series of at least 4 to 6 RIs needed to get more capital for next few years. Result ~ 30% capital losses Done at ever decreasing share prices unless executed with share consolidation which takes us to the next issue at hand.
High possibility of share consolidation which translates to ~ 20% capital losses for existing holders.
the only winners will be Management and Staff.
Kindergarden maths tells you => Consolidation and RI will easily result in ~ 50% capital losses.
so cannot blame existing holders to dump desperately resulting in continous non-stop drop drop drop drop and more drop to existing share price which is expected to drop drop drop and more drop later.
sslee had also raised the issue of continous RI in Jaks future ... done at ever decreasing share prices unless consolidation then more RI at ever decreasing share prices unless consolidation then more RI at ever decreasing share prices unless consolidation then more RI at ever decreasing share prices unless consolidation then more RI at ever decreasing share prices unless consolidation
This slow cooker process was perfected in the turmoil of Hong Kong financial system survival struggles to get Suiyee Sucker Bilis. If you wanna a name... ... if anything .. .. this is called the Hong Kong Scam coz it was perfected there.
Its perfectly legal to ask for RI and then consolidation
even the scam methodology is duplicated from Hong Kong social life.
in Hong Kong, restaurants where waiters abuse customers seem to attract more people and was praised as good tasting food, end result is long queues and no available tables. So similarly, such counters invariably have one or more people who are outright nasty or hostile. Hong Kong Scam Bosses believe that this system of nasty people works to get Suiyee Sucker Bilis to buy. Actually it works all the time.
Source - Affin Hwang Improvement in associate profit as maintenance work is completed The associate profit has recovered by 19% qoq, as the share of associate profit from the power plant has increased to RM33.9m in 1Q22 from RM28.6m in 4Q21, mainly driven by lower maintenance costs incurred as most of the work was completed in 4Q21. We believe that there is still potential upside to earnings, given that it is still below the RM37.5m-RM43.4m/Q achieved in 2021. The improvement yoy was mainly due to the second unit of the boiler, which only started contributing in January 2021. Given the improved stability of the power plant, management remains confident that they would start receiving dividends from its associate soon, and would also likely announce its maiden dividend to Jaks’ shareholders in 2022. Continue working to turn around domestic operations We believe that the narrowed PBT for its property investment operation to RM10.2m from RM20.8m was mainly due to better cost management as the overall revenue for the segment has only increased by less than RM0.5m for the quarter. We are expecting stronger revenue (lower losses) in the coming quarter, due to the improved footfall for the Evolve Concept City Mall (a huge portion of its rental is based on percentage of sales), and the improved occupancy rate at its Pacific Star Business Hub. As of end of the quarter, occupancy rates for the properties are at 67% and 31% respectively. Maintain BUY with an unchanged TP of RM0.62 We have kept our earnings forecasts unchanged, given that the performance was within our expectations. We also retain our BUY call and keep our TP unchanged at RM0.62, based on a 20% discount to RNAV. We reiterate our BUY rating as we remain optimistic as the potential maiden dividend in 2022 could be the re-rating catalyst. Downside risk: higher-than-expected losses from its property investment segment.
Jaks FY22Q1 result was not too bad with a PATAMI of RM21.1mil (EPS 1.03 sen). Again, it has been saved by the profit sharing from its Vietnam power plant.
Operating profit in this quarter stays negative at a loss of RM17.5mil, while profit sharing from Vietnam is RM33.9mil.
The quarterly profits contribution from Vietnam are RM33.9mil (FY22Q1), RM28.6mil (FY21Q4), RM43.4mil (FY21Q3), RM37.5mil (FY21Q2) and RM29.8mil (FY21Q1).
For the last full FY2021 ended in Dec21, overall operating loss was at RM108.8mil and the Vietnam profit sharing stood at RM139.3mil.
Operating cash flow remains poor as it registers persistent losses from its construction and property investment divisions, which looks never-ending.
Revenue is in the downtrend as no new construction contract is secured. Its LSS4 project is expected to be completed in one year's time (Q1 of 2023) but its profit contribution is likely to be relatively small.
To me, the only hope now for Jaks is to get the dividend payment from JHDP which is its Vietnam power plant investment.
It's already been more than one year since the plant started operation but it seems like no dividend is distributed yet. Perhaps it will be in mid 2022?
Anyway, cash continues to be burnt daily and it has a total cash of RM102mil at the end of Mac22, after just raising RM129.5mil through private placement in mid 2021.
If operating cashflow is still poor in the next 2 quarters, I can't rule out a further cash call by Jaks.
As a well-managed company, MFCB's share price does not move much even though it gets RM450mil cash inflow yearly from its hydropower plant.
Looking at this, I have some doubts over how much valuation the market will give to Jaks later. We know that Jaks is not a very well-managed company after all.
Current market capitalization is RM613m only. Its net profit is projected to increase from RM51.9m in 2021 to RM113m in 2022. Unfortunately the share price has been dropping with no support at all, similar to many other listed companies in this bearish Bursa market.......
Jaks management must quickly take actions to dispose of its property investment arms even at a loss to stop its bleedings, and use the proceeds to exercise its call options to buy the additional 10% stake in JHDP which can boost its annual net profit contribution to close to RM200m per annum.
Thank you for making my dream come true. I target to buy 0.26 many months ago. Even tried to advise and slap Aseng and followers to see reality. Unfortunately, just like gloves maniacs, very hard to save them liou. They still believe fundamental runs the share price. In truth, it's the big boys and shorties who running the show. They have all information advantage. In poker game, they can see your cards already. So, becareful yah
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....