Posted by Sslee > 2023-03-09 19:34 | Report Abuse

I think all the sifus calculation on Jaks JV Vietnam power plant earning was proven right to the spot.

What they miss out is poor management and ALP addicted to PP, RI, LTIP, yearly impairment on receivables, goodwill and all the Malaysia projects/investments badly managed till bleeding non stop.

Posted by CharlesT > 2023-03-09 19:38 | Report Abuse

The deal is too good to be true to Jaks. Just so many choosed to believe in fairy tales.

Posted by CharlesT > 2023-03-09 19:41 | Report Abuse

Very good paper profit but very bad cash flow....u can hardly see the cash...mayb yr grandchildren can see lah...the same long term investment philosophy like Xinquan

Posted by CharlesT > 2023-03-09 19:47 | Report Abuse

By the way, i saw many sifus predicted RM200m to RM300m profit fm IPP Vietnam every year....

Where got such paper profit????

Posted by Sslee > 2023-03-09 19:59 | Report Abuse

Jaks share of profit in JVC (2022: 2021): RM 156,190,000: RM 140,713,000.

This is for 30% equity, if take up addition 10% option then the 40% equity will increase the share of profit by another 33.33%

Posted by Jokers2020 > 2023-03-09 21:59 | Report Abuse

oneday show...

Posted by xiaochen > 2023-03-10 08:42 | Report Abuse

No matter how YTLP manage their Kulai 500mw power usage, as long as the power generated is fully utilize.

As a businessman, it is good for PowerSeraya to gain extra profit even the profit margin is tiny. I treat this as extra income, or extra bonus.

According to YTLP business pattern, big possibility for YTLP to have their own solar power station beside the Kulai, if they are awarded more export contract.

It is a very good sign that the government is willing to help local company to do business with Singapore. I really don’t know why the ex-government BAN the RE to export, its limit YTLP to export more.

Hopefully Power Seraya will be awarded more and more.

Posted by pang72 > 2023-03-10 09:58 | Report Abuse

JAKS no2 for YTL?
Hot discussion?

Posted by yong1985cm > 2023-03-10 10:33 | Report Abuse

is the Jordan oil shale plant going operate soon? where u hear it?

Posted by cruger12345 > 2023-03-10 11:16 | Report Abuse

Yong1985 … go Google and find the AGM Q AND A …. Don’t expect to be spoon feed info all the time …. Hng33 post the link before go and search only take u less than 5 mins

Posted by dragon328 > 2023-03-10 12:16 | Report Abuse

https://www.theedgemarkets.com/node/658591

"The RFP requires non-intermittent supply, the EMA acknowledges the cost of generation and storage technology for variable RE and is willing to consider lower load factor (vs requirements of 75%) in the initial years of supply."

As we know solar power can only generate electricity for few hours a day when there is sunlight, and is notorious for its intermittent supply, hence will need have expensive battery solution to smoothen the power supply throughout the day.

Another solution is to have gas turbines as back-up supply when there is interruption in solar power supply, and PowerSeraya has a few units of gas turbines ready to complement the supply of RE for any importer of RE into Singapore.

Posted by myloh123 > 2023-03-10 13:13 | Report Abuse

Why did pchem drop so much? Rm 7 good buy?

Posted by myloh123 > 2023-03-10 13:17 | Report Abuse

Ooo..Hlb downgraded to sell ..target rm 6.50..yr 2023 will b a bad year

Posted by xiaochen > 2023-03-11 09:55 | Report Abuse

政府检讨再生能源出口禁令-杨忠礼电力受惠大
取自：星洲日报

https://www.sinchew.com.my/20230310/%e6%94%bf%e5%ba%9c%e6%a3%80%e8%ae%a8%e5%86%8d%e7%94%9f%e8%83%bd%e6%ba%90%e5%87%ba%e5%8f%a3%e7%a6%81%e4%bb%a4-%e6%9d%a8%e5%bf%a0%e7%a4%bc%e7%94%b5%e5%8a%9b%e5%8f%97%e6%83%a0%e5%a4%a7/

Posted by xiaochen > 2023-03-11 09:56 | Report Abuse

看来新加坡的电供，可能会进一步吃紧。

Posted by xiaochen > 2023-03-11 10:02 | Report Abuse

新加坡的绿色电力的收购价，远比大马的绿色电力批发价，来得更高很多。
看来，若成功得标，确实有利可图，就算不用自己的太能能发电厂的电。

Posted by hng33 > 2023-03-11 17:55 | Report Abuse

Wessex water will facing higher corporate tax from 19% to 25% begin April 2023. These measure if proceed will offset off most of benefit Wesses traffic hike rate unless Prime Minister Rishi Sunak reverse these policy

https://www.internationaltaxreview.com/article/2bb17ls7bcjbtws45dekg/uk-government-under-pressure-over-corporate-tax-hike

Posted by hng33 > 2023-03-11 17:56 | Report Abuse

https://www.msn.com/en-gb/money/other/jeremy-hunts-corporation-tax-hike-would-make-britain-a-far-worse-place-to-do-business/ar-AA18r2wN

Posted by hng33 > 2023-03-11 23:00 | Report Abuse

Lawmakers in Hunt's governing Conservative Party want him to halt April's sharp jump in the corporation tax rate to help an economy on the verge of recession and which is the only one in the Group of Seven not to have recovered its size of before the coronavirus pandemic.

https://www.theedgemarkets.com/node/658753

Posted by dragon328 > 2023-03-12 11:37 | Report Abuse

The proposed corporate tax hike from 19% to 25% from 1st April 2023 was announced back in 2021, and Wessex had made a provision for a re-measured deferred tax charge of RM541 million in its June 2021 quarterly result.

If this increased tax rates materialise, then it will hit Wessex immediate profit after tax by 6%.

However, as in the case of high inflation costs, such higher tax rates will be compensated by higher water tariffs possibly in 2024 water tariff adjustment after the higher tax rates have indeed come in effect.

Posted by dragon328 > 2023-03-12 11:39 | Report Abuse

Of course, we all hope that the higher tax rates will not be implemented, then Wessex would be able to write back the RM541 million deferred tax charge.

Posted by Alwinb > 2023-03-13 06:42 | Report Abuse

D328, Unlike Wessex, Seraya Power has finite economic lifespan of 30 years which is ending in 2032 in accordance with EMA license

Posted by dragon328 > 2023-03-13 08:54 | Report Abuse

The license given by the EMA to PowerSeraya was for 30 years, this is same for all other power generators in Singapore like Senoko Power, Tuas Power and Sembcorp or Keppel Power. As long as the power system needs these power generators, the EMA will always extend the license.

Come 2032 thereabout, the EMA will see how much import power the country can solicit then to determine the right energy mix for the country. If Singapore can source up to 4,000 MW of renewable energy by 2035 according to the current tender exercise, such import power will make up about 30-35% of the system total installed capacity + import supply and about 40%-45% of the system peak demand. The EMA will definitely need the big power generators to remain as the backbone supply. By the time, some of the older machines of the existing big power generators including PowerSeraya and Senoko will reach their operating life span, so each power generator will also need to review if they still want to maintain these old fossil fuel generators or repower to newer machines capable of burning green hydrogen, or already expand their import power capacity to make up the shortfall.

Posted by dragon328 > 2023-03-13 08:58 | Report Abuse

In the case of PowerSeraya, I see them as having the first mover advantage in importing power to Singapore. They will try to participate in the current power import tender exercise either by having YTLPower to invest in new solar power farms in Malaysia, or by being the aggregator of power import from Malaysia or a combination of both.

This shall make up any shortfall in fossil fuel power generation by 2035.

Posted by dragon328 > 2023-03-13 09:17 | Report Abuse

Furthermore, any imported power will not be as secured as the locally installed power generators which are well spread out across Singapore electricity grid network. Imported power will need new interconnectors with Malaysia or undersea power cables from Indonesia, so in terms of system security and national interests security, such import power is deemed having higher risks. Just imagine if the undersea power cable to Indonesia is damaged accidentally or needs maintenance, then it could risk disruption of 1,000MW to 2,000MW of import power supply to Singapore, and such a 10%-20% sudden power trip may trigger a national blackout.

Posted by Alwinb > 2023-03-13 09:45 | Report Abuse

D328, Thanks for your insight. Wessex is really a rare gem...

Posted by hng33 > 2023-03-13 10:30 | Report Abuse

sold at 87-87.5sen ahead of 15 Mar UK budget announcement on corporate tax

Posted by myloh123 > 2023-03-13 12:25 | Report Abuse

I thot corporate rax rise a done deal n effective from 1 April?

Posted by hng33 > 2023-03-13 12:34 | Report Abuse

UK gov proposed corporate tax hike from 19% to 25% in coming budget 15 Mar, but it's still need subject to vote in parliament. Wait for outcome before re-enter

Posted by speakup > 2023-03-13 12:44 | Report Abuse

Aduh

Posted by Sslee > 2023-03-13 13:48 | Report Abuse

Rishi Sunak has insisted the UK will be able to lure foreign companies despite a planned rise in corporation tax, suggesting he will face down critical Conservative MPs ahead of this week’s budget.

Despite some Tory MPs’ hostility at the planned rise to corporation tax from 19% to 25%, Sunak stressed Britain would still have the lowest level of corporation tax in the G7, and added it would remain “a fantastic place to invest to grow a business”.

Posted by myloh123 > 2023-03-14 10:15 | Report Abuse

Yeah...6% is a lot man

Posted by xiaochen > 2023-03-16 08:24 | Report Abuse

英国企业税，确认回升至25%。
这只是回到2011-2012年的水平。
原来，这国家的企业税，曾经是超过50%，那是1980年代的记录。
之后一路降，最低达19%。

Posted by xiaochen > 2023-03-16 08:31 | Report Abuse

2015-2016，企业税是20%
2017-2022，企业税是19%

当企业税不断降低的时期，似乎对Wessex的盈利扶持不大。
但是，当企业税的提升，对Wessex的盈利带来强大的冲击的时候，似乎在表示，Wessex能带来强大盈利的可能性越来越低。

Posted by xiaochen > 2023-03-16 08:33 | Report Abuse

一般上，
利好，企业盈利提升少。
利坏时期，企业盈利严重下跌。
这不是一个好讯号。

Posted by xiaochen > 2023-03-16 08:52 | Report Abuse

总结：
新加坡业务：盈利进一步扩大的可能性不高，似乎目前已经是极限。除非有新的开源管道投入服务，或马币继续贬值。
英国业务：亏损会不会进一步扩大？非常有可能。因为英国整体经济持续下滑。
印尼发电业务：稳当
数位中心：稳当。目前没有增加盈利的管道，要到2024年年头。
约旦发电业务：非常神秘。也不懂官司了结了没。能确定的是，打从去年年尾，约旦电商开始向发电厂买了一些的电了。
电讯商：。。。

Posted by wallstreetrookieNEW > 2023-03-16 10:48 | Report Abuse

YTL is usually very long-term oriented

Posted by hng33 > 2023-03-16 15:16 | Report Abuse

Corporation tax: Jeremy Hunt confirms rise to 25% from April
https://www.bbc.com/news/business-64963631

Posted by dragon328 > 2023-03-16 17:18 | Report Abuse

Jeremy Hunt said only 10% of businesses would pay the full rate and anticipated that his new "full capital expensing" policy was equivalent of a corporation tax cut worth an average of £9bn a year.

While the corporate tax rate will be raised from 19% to 25% from 1st April, the full capital expensing policy will help in reducing cash tax for corporates who spend on capital investments. Wessex will incur quite some capex in next year from 1st April, so it will be able to claim tax deduction under such full capital expensing policy. But it is not entirely clear to me whether such policy will overlap or sit on top of the normal capital allowance for tax deduction.

In any event, the worst case impact from the corporate tax hike will be for a ~7.5% reduction in net profit for Wessex. eg. if its pretax profit for FY2024 is 100 million pounds, it will pay 25 million pounds of accounting tax instead of 19 million pounds, so net profit will reduce from 81 million pounds to 75 million pounds, or 6/81 = 7.4% reduction impact.

Posted by dragon328 > 2023-03-16 17:25 | Report Abuse

For FY2021, Wessex registered:
revenue = 514.71 million pounds
Profit before tax = 83.33 million pounds
Corporate tax = 14.511 million pounds
Effective tax rate = 14.511/83.33 = 17.4%

As can be seen above, Wessex already recorded corporate tax rate lower than the statutory 19% in 2021. I am confident it will register an effective tax rate of lower than 25% for FY2024.

In any event, the effective water tariff hikes of ~15% will increase revenue by 77 million pounds a year. If operating costs remain as in FY2022 which were already elevated, then pre-tax profit will go up by the same 77 million pounds and net profit up by 58 million pounds.

Posted by dragon328 > 2023-03-16 17:29 | Report Abuse

If operating costs increase by another 10% in 2024, then pretax profit will go up by (77-35) = 42 million pounds and net profit by 31.5 million pounds or RM173 million in FY2024 after incorporating the higher corporate tax.

With the higher RAB now, the revenue increase will be higher than what I calculated above.

Posted by dragon328 > 2023-03-16 17:33 | Report Abuse

However, the current stock market is weak now pressured by external factors like the collapse of SVB and troubles in Credit Suisse. I will advise caution in trading and always advocate long term holdings of good stocks like YTLPower which will see increasing profits in next few quarters.

A good entry point looks like at RM0.80 then RM0.72.

hng33 has a better idea on when to re-enter after taking profit around RM0.875.

Posted by anthonytkh > 2023-03-16 17:57 | Report Abuse

Thanks dragon. But I never type “advise” in any public forum, I prefer “suggest”. But, hey, that’s me coz I consider myself as just ain’t good enough and am still learning. Good luck and all the best

Posted by dragon328 > 2023-03-16 20:57 | Report Abuse

ok, I will suggest caution in trading... which I am not good at

Posted by dragon328 > 2023-03-16 21:17 | Report Abuse

as I pointed above, if operating costs increase further by 10% in FY2024 Mar, pretax profit of Wessex will increase by (77 - 35) = 42 million pounds. The beauty of this regulated asset business is that such hikes in operating costs will be compensated by future hikes in water tariffs. In this example, Wessex water tariffs will get raised further in April 2024 to compensate for the 10% rise in operating costs in FY2024, such that Wessex will get back the "lost" 35 million pounds of earnings from FY2025.

In summary, whatever increase in operating costs, interest rates or corporate tax rates, Wessex will eventually get back the "regulated" returns for the services it provides. Hence in FY2025, Wessex will get back the increase in pretax profit of 77 million pounds a year.

In its latest Dec 2022 quarter, Wessex registered a pretax profit of RM59 million, annualised to RM236 million or 43.5 million pounds.

Added with the increased 77 million pounds as calculated above, Wessex total pretax profit will get back to 120 million pounds (or RM654 million) a year soonest in FY2024 or latest in FY2025 Mar.

For info, Wessex contributed pretax profit of:
RM746 million in FY2019 June
RM608 million in FY2020 June
RM494 million in FY2021 June
RM374 million in FY2022 June

Posted by myloh123 > 2023-03-17 10:54 | Report Abuse

Ytlpower rebounded to 87 sen

Posted by xiaochen > 2023-03-20 11:45 | Report Abuse

不是吧，不是吧。九毛咯。EPF不是卖着吗？股价干嘛还高升？

Posted by dragon328 > 2023-03-20 12:21 | Report Abuse

UK corporate tax rate hike to 25% has been well expected, already announced back in 2021 and Wessex has already provided for the deferred tax charge increase, so it was a no issue.

EPF selling YTLP is an obvious mistake, as it turns to more like a short term trader now, EPF will lose out on the long term high dividend yields in years to come if it takes profit on the 10% share price gain.

Posted by dragon328 > 2023-03-20 12:22 | Report Abuse

I think EPF sold again and press it from 0.90 to 0.865

Posted by myloh123 > 2023-03-20 13:15 | Report Abuse

Yes, we r long in ytl power. Nowadays its hard to find a stock with pe 4, div yield 6%pa & nta 1.75 with a good biz modal and appreciation in capital.