[JAKS RESOURCES BERHAD, why I bought into it]
I bought Jaks shares in last year September, until now I'm quite happy with the few months return. The main reason I bought into it is its 30%-owned (Jaks got an option to top up till 40%) JV with China Petroleum Engineering and Construction Corporation (CPECC) to build a 1200MW coal fired power plant in Vietnam. Famous investor MR. Koon Yew Yin (KYY) owns 21.91%, his wife owns 8.959%, so together they own 30.869%, and KYY publicly declared that he will continue to buy Jaks. Moreover, CEO Mr. Ang bought a lot of shares from open market in 2017. Logical common sense will tell you that the reason for them to own so many Jaks share is: The huge prospect of Jaks!
The power plant site progress achieved thus far is satisfactory. Most key structures are progressing well with some such as the living quarters and the road access already completed. The power plant chimney has reached the top (http://www.swepdi.ceec.net.cn/…/…/2/5/art_17693_1576370.html). The completion of the power plant is going to be ahead of schedule. With the successful implementation of this 1200MW project, the potential catalysts from new jobs especially in Vietnam are now highly possible.
The disposal of its landbank amounting to RM194m which was completed in 2017 is going to pare down its gearing significantly. Jaks is also planning to sell the Evolve Concept Mall. The on-going Pacific Star project is expected to be handed over by phases starting from mid-2018.
25 years of recurring income from its power plant will kick in by 2020. With exchange rate of 3.89, the annual 40% profit of at least USD149.48m is going to be RM232.43m.
Outstanding orderbook is estimated at RM2.4b, which should underpin its earnings for the next 3 years.
Profit after tax and minority interest forecast:
FY2018 is RM85.4m, FY2019 is RM93.1m, compared with FY2016 pretax loss of RM6.9m
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我在去年九月时买进Jaks，几个月的回酬还算不错。买进的主要原因是Jaks和中国石油工程建设公司CPECC的合资公司有30%的股分在越南建造中的1200MW煤发电站。管有缘先生持股21.91%，他的夫人持股8.959%，他们共持股30.869%，管先生说他还会继续买进。CEO安先生在去年也在公开的市场买进很多股。一个合理的解析为什么他们敢买这么多股分：Jaks的前景相当不错！
发电站的建造速度很快。大部分的基础建设己经完工（如宿舍，道路等）。烟囱外筒已顺利到顶(http://www.swepdi.ceec.net.cn/…/…/2/5/art_17693_1576370.html)。预计完工的时间会提前。这个项目完工后，jaks有可能在越南拿到更多的发电站合约。
jaks在去年卖了RM1.9亿的土地会用来还掉一大部分的债务。jaks也打算卖掉Evolve Concept Mall。建造中的Pacific Star项目预计在年中分批交给顾客。
2020年1200MW煤发电站完工后，jaks会有25年稳定的卖电收入。如果以3.89的美元换算，40%的至少1.5亿美元年度盈利 = 2.3亿马币的年度盈利。
手上的合约共RM24亿，能让jaks忙上3年。
税后盈利预测：
2018年8540万，2019年9310万，比较2016年亏了690万。
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James Ng
