Posted by Fat Cat Tim Buddy > 2014-02-17 15:14 | Report Abuse

if u dont sell, your profit will keep on erode lo.. sell lo before too late kikiki...

Posted by hng33 > 2014-02-17 15:22 | Report Abuse

All 1MDB has to show is mountain of debt?

The 1 MDB Story.

Having read the expose by The Edge Malaysia (Feb 17, 2014) of 1-MDB, to say that the case of 1-MDB is troubling is an understatement. If this is PM Najib’s flagship of showcasing his success, this surely is extremely distressing. This report focuses on the powers sector and property market.

The Government-funded 1-MDB was set up to drive investments in the new strategic sectors with high productive outcome and impact on the economy.

After 5 years and fabulous hype, there is HUGE DEBT

But after five years, all that 1-MDB s capable of showing is a mountain of debt ie a multi-billion debt portfolio. It has a few signs to being able to succeed without government giving more sweetheart deals.

After what could be dubbed a shopping spree by 1-MDB, the main challenge for 1-MDB is that ‘its current portfolio of power assets seems to generate minimal returns relative to costs’.

In March 2012, I-MDB acquired Tanjung Energy Holdings Sdn Bhd for RM8.5 billion from Ananda Krishnan. In August 2012, it bought 75% stake in Genteng Sanyen Power SB (now Kuala Langat Power Plant SB), at RM2.35 billion. However “total cash flow generated from its plants is at RM1billion per annum. It is only adequate to service interest payment arising from bonds but not the bond in full”.

With the Energy Commission set to announce the winner of the bids for the new 2,000 MW coal-fired power plant (Project 3B) and going by market talk, 1-MDB is yet again expected to win over other competitors including YTL Power International Bhd despite a lower competing bid (25.23 sen per kWH as compared to 25.65 sen per kWh of 1-MDB.

By comparing the cash flow streams of the power assets with the RM10.5 billion I-MDB paid, the implied IRR for assets acquired from Tanjung comes up to 5.2%, while the implied IRR for Kuala Langat fares much worse at just 0.5%. In all, its entire portfolio generates a weighted average IRR of a dismal 4%! It has clearly overpaid the acquisition of Tanjung and Kuala Langat.

With that hanging on its head and the headwind could be anything but stronger, it is doesn’t take a pundit to tell the nation that the purchase of the cheap 70 acres of prime land in Jalan Tun Razak for its flagship Tun Razak Exchange (TRX) and 495 acres of the current military airport in Sungai Besi to build the ‘Bandar Malaysia’, it is obvious that to the collateral damage to the rest of the property sector of Kuala lumpur could be heavy’, quipped The Edge.

Is this all the PM is capable of doing?

It is obvious that all effort must be put in place to mitigate an imminent corporate disaster of ‘Najib-Style Corporate Malaysia’. Najib is acutely confused over which way he is going to take Corporate Malaysia as he is not only competing but in fact crushing them.

Is this Najibnomics? (a study now undertaken by Harvard Business School).

A set of economic idea that is dependent on the realisation of speculative wealth through their monetisation in the stock market. Its means include under-pricing of assets through privatisation of government land in high value areas (awarded to cronies) such as in Lumpur and then flogging them off onto the property and retail investors at inflated valuation.

Najibnomics also applies the same principle to privatised infrastructural and utility projects.

Is this all that PM Najib could muster after being groomed for 30 years before helming this nation?

Time for real real game changer, Umno! Please!

Full article: http://www.malaysia-chronicle.com/index.php?option=com_k2&view=item&id=228081:najib-style-corporate-malaysia-or-simply-corruption?&Itemid=2#ixzz2tYsjiW7H
Follow us: @MsiaChronicle on Twitter

Posted by smartly > 2014-02-17 15:47 | Report Abuse

wb no longer cheap anymore. :(

Posted by alveygwee > 2014-02-17 15:48 | Report Abuse

sad la malaysia~

Posted by leek > 2014-02-17 16:01 | Report Abuse

huat lai liao

Posted by smartly > 2014-02-17 16:02 | Report Abuse

leek, how far you have gone down now on average ?

Posted by smartly > 2014-02-17 16:02 | Report Abuse

66sen ?

Posted by smartly > 2014-02-17 16:03 | Report Abuse

wait a bit longer, possible can get lower.

Posted by smartly > 2014-02-17 16:04 | Report Abuse

55sen is possible. i will top-up some if it ever touch 55sen.

Posted by smartly > 2014-02-17 16:05 | Report Abuse

today sbb at 5m at least.

Posted by Fat Cat Tim Buddy > 2014-02-17 16:06 | Report Abuse

gark will sell at 0.55 garkgarkgark...

Posted by smartly > 2014-02-17 16:06 | Report Abuse

but the selling force is just too much to swallow. :(

Posted by leek > 2014-02-17 16:06 | Report Abuse

65c... next buy 55c n 50c... selling pressure is there

Posted by leek > 2014-02-17 16:15 | Report Abuse

Rumour of last weekend meeting.... ytlp can't get the 3b project, but is given a ipp project in Johor... putting ytl in difficult situation that people will curse ytl from getting project without tender...

Posted by leek > 2014-02-17 16:17 | Report Abuse

Poor chinese business in Malaysia all being taking over by the unno n glcs...

Posted by hng33 > 2014-02-17 16:22 | Report Abuse

Seller are too motivated, wanna to sell fast ....bu sbb due to limitation, only can absorb slowly but at the same time at lower cost, However, seller pressure is short life (their stake is decreasing gradually), but sbb have long life (accumulate, cancel, and accumulate again). The impact of sbb on share value even is slow but is value enhancing on daily basis. Again, i'll stay invested, opt for long term holding to ultimately enjoy the impact of sbb on share value.

Posted by Fat Cat Tim Buddy > 2014-02-17 16:25 | Report Abuse

why dont let 1mdb get the ipp, while the lowest tender get the 3b project? kikiki..

so funny 1 those ppl, open tender but lowest bidder cannot win..

Posted by hng33 > 2014-02-17 16:27 | Report Abuse

leek

It will have under table deal to compromised....if YTLP failed to secure 3B project, in exchange its Pasir Gudang power plant could grant extension another 10 year. The net impact is Positive, as there is no additional capital raise to build 3B power plant, but conveniently keep enjoy stable earning from current going expire concessions for another 10year albeit the the traffic rate will adjust lower (risk free)

Posted by leek > 2014-02-17 16:32 | Report Abuse

Current boilers are dying... if want to live for 10 years, will cost them a lot to repair... best is to build new power plant... with today's technology the new plants life span can be 40 years... yes... new power plant for Johor and iskandar only

Posted by leek > 2014-02-17 16:33 | Report Abuse

Somemore can sell to Singapore.... make SGD... haha

Posted by hng33 > 2014-02-17 16:41 | Report Abuse

Not really, the broiler is always under schedule maintenance to upkeep its power availability. All YTLP power plant still have more than 97% power availability according to YTLP annual report. Therefore, in the end, the skill in maintenance its utmost important, and the ultimate is whether it is still able to generate power output. (Jimah power broiler despite only in operation only few year and Malakroff power (reason to delay IPO last year, due to dispute between their power output with TNB) both already have broiler problem.

After project 3B, there will be another project 3C, all must open tender, therefore there is no such deal to direct give YTLP another IPP in Johor

Posted by leek > 2014-02-17 16:46 | Report Abuse

Yes... they can give project... with the condition no guarantee of buying the electricity... but Johor Sultn gave instruction the state will only use his own power... endless possibilities

Posted by chongbh2 > 2014-02-17 16:49 | Report Abuse

waiting ytlpower-wb drop back to rm0.50 then buy back

Posted by leek > 2014-02-17 16:51 | Report Abuse

Ytlp n johor sultn offer to build a pp in Seremban without asking anyone to commit to buy their electricity...

Posted by hng33 > 2014-02-17 16:55 | Report Abuse

sbb in action, absorbing seller 1.76

Posted by leek > 2014-02-17 16:59 | Report Abuse

Buying back 10 mil today

Posted by hng33 > 2014-02-17 17:15 | Report Abuse

YTLP operate Power seraya in Singapore without concession, it can operate in open and competitive power purchase to the buyer, therefore YTLP operating margin is only about 6%. Unlike, in Malaysia, all power operator must sign power purchase agreement with TNB at per-determined traffic rate, the shield them from risk and enjoy stable earning at least 7-9% profit margin but is half if compared with first generation IPP that enjoy 15% net profit margin. YTLP already propose to gov many time to open power, in which all IPP player can tender out their power output, so that TNB as buyer and pick and choose the lower cost in tender process. But our gov still insist.....IPP must sign concessions with TNB.

Posted by hng33 > 2014-02-17 17:31 | Report Abuse

But, thing changing fast.....policy can change....especially with increasing electricity cost burden...gov may force to allow YTLP to continue operate its power plant if it can offer cheaper power output after expire of its concessionaire. YTLP afford to just enjoy profit margin of 6% compared to other IPP which still debt laden and need to service interest cost of their initiate power plant construction cost.

Posted by hng33 > 2014-02-17 17:34 | Report Abuse

Bought back 9.6m share, 71% of today total volume, range 1.75-1.80, increase 0.14% stake, cumulative treasury stock at 9.78%

Posted by leek > 2014-02-17 18:03 | Report Abuse

Huatt lai liao

Posted by my101home > 2014-02-17 23:39 | Report Abuse

leek where is your source of info? reliable?

Posted by alveygwee > 2014-02-18 09:17 | Report Abuse

FLy fly today..pray hard..haha

Posted by hng33 > 2014-02-18 09:26 | Report Abuse

Seller still hold YTLP share volume, pressure continue, but as time go, these pressure will gradually diminishing tallying their decreasing stake volume, mostly absorb by sbb.

Lets hope after 28 Feb, YTLP will cancel part of their treasury stock (likely cancel another 250m) and start accumulate aggressively.

Posted by alveygwee > 2014-02-18 09:32 | Report Abuse

hng33 u hold how many lot of ytlp?

Posted by hng33 > 2014-02-18 09:49 | Report Abuse

I'm holding mostly YTLP-WB and some YTLP, both combine form about 78% of my portfolio now, with balance are CAP and TMS.

Posted by hng33 > 2014-02-18 09:52 | Report Abuse

My holding cost for YTLP-WB (66sen); YTLP (1.82); TMS (7sen); CAP (29sen)

Posted by alveygwee > 2014-02-18 09:58 | Report Abuse

let pray hard~can top up ytlp? thinking top up if cont drop~

Posted by alveygwee > 2014-02-18 10:00 | Report Abuse

hng u working or full time investor?

Posted by hng33 > 2014-02-18 10:04 | Report Abuse

YTLP share is due to rebound soon if seller pressure easing. The catalyst to the share price are upcoming Q2 result (broadband narrowing loss or turnaround) + cancel part of the treasury stock and restart accumulate + expand markets share by migrating its 4g Wimax to 4g LTE + acquire water assets in Johor from Ranhil

Posted by hng33 > 2014-02-18 10:06 | Report Abuse

Yes

Posted by hng33 > 2014-02-18 10:11 | Report Abuse

sbb still working, but very fast approaching it full quota. Hope the seller volume easing before it reach 10% in treasury stock or at least can drag until 28 Feb, allowing to cancel treasury stock and restart sbb back again

Posted by chongbh2 > 2014-02-18 13:05 | Report Abuse

28-Feb will cancel the treasury share ?

Posted by smartly > 2014-02-18 14:36 | Report Abuse

selling force still very much dominated.

Posted by hng33 > 2014-02-18 15:07 | Report Abuse

CORRUPTION & HANKY-PANKY AT NAJIB'S 1MDB:M'sians will have to PAY MORE FOR UNFAIR DEAL


It has been reported by The Edge Financial Daily over the past 2 weeks that the Energy Commission has decided to award the latest 2,000MW coal-fired power plant to 1Malaysia Development Bhd (1MDB).

The paper reported that “according to industry sources, the board of the Energy Commission (EC) has decided to propose 1MDB as the preferred bidder for the RM11 billion planting­up exercise to the Ministry of Energy, Green Technology and Water”.

This is despite the fact that the bid submitted by 1MDB at 25.65 sen per kWh is higher than that submitted by another tenderer, YTL Power at 25.23 sen per kWh. The difference of 0.42 sen per kWh is estimated to constitute a difference of RM2 billion over the 25 year concession period.

But preferred bidder was YTL

What is more disturbing is the fact that based on documents sighted by The Edge, “the EC’s technical evaluation committee had recommended YTL Power as the preferred bidder for the tender in December last year”.

The Cabinet must not make a mockery of the international tender exercise for the above power project codenamed “Project 3B”. By selecting a bid which is higher than the lowest qualified bid, the Malaysian government will be signalling to the entire world that any tender exercise conducted will favour only certain connected parties such as 1MDB, whereas the real “winners” of the tenders are doomed to fail.

The Cabinet must acknowledge that the strength of future open tenders in Malaysia will be highly dependent on the confidence of the participants in the system. If the global contenders lose faith in a level playing field as promised by the Najib administration, then Malaysia will not be able to attract the best quality and value contractors for our projects, resulting in a loss of competitiveness.

Unfair decision will have grave impact on lives of ordinary folk

What is perhaps most important and immediate for the Cabinet to consider is also the impact on ordinary Malaysians as a result of such an unfair decision to award to a bidder at a higher price. The higher cost of electricity payable to 1MDB by Tenaga Nasional will naturally result in a higher cost of electricity for both the industry and ordinary Malaysians. At a time when the Government is cutting subsidies and claims that it is doing all it can to keep cost as low as possible, it will be a clear betrayal to the man-on-the-street if it chooses higher electricity prices.

The Cabinet can be assured that if the higher bid is selected, the DAP and Pakatan Rakyat will ensure that all Malaysians discover that the Prime Minister Dato’ Seri Najib Razak and his cabinet are completely insincere in wanting lower costs for the rakyat, and is only keen to prioritize the profits of those connected to the administration.

Tony Pua is the MP for PJ Utara

Posted by leek > 2014-02-18 16:08 | Report Abuse

Parking... 0.55

Posted by smartly > 2014-02-18 16:18 | Report Abuse

0.55 is very near, tomorrow should likely be able to grab judging the current selldown.

Posted by smartly > 2014-02-18 16:19 | Report Abuse

leek, must say thanks to epf & lth.

Posted by smartly > 2014-02-18 16:20 | Report Abuse

big q for sell at 1.74 & 1.75 :(

Posted by hng33 > 2014-02-18 17:03 | Report Abuse

潘俭伟质疑政府偏袒一马公司
电厂竞标价高于杨忠礼却出线

随着媒体报道能源委员会决定颁发最新的2000MW燃煤发电厂予一个大马发展公司（1MDB），而非价格更低的杨忠礼电力，在野党即时表达关注。

行动党八打灵再也北区国会议员潘俭伟表示，内阁在决定发电厂计划的“赢家”时，必须优先考虑人民的利益，而不是跟它有关连的公司利润。

“内阁必须不能让上述代号为‘3B计划’的电力计划的国际招标活动沦为笑柄，那就是选择一个出价更高而不是最低的竞标者。”

Posted by smartly > 2014-02-18 17:11 | Report Abuse

what to do. pm 'dai sai'.

if you want projectssss, you must first be the highest guy..