In his 10 December 2018 article, Uncle Koon mentioned the following :-
"As you know the company has a lot of unsold properties and under the current depressed market condition, it will not be able to sell its properties."
His concern is that this will drag the Group into losses for many years to come.
This
is different from what the Company has been disclosing in its previous
documents. For example, in FY2017 annual report, the Company said the
following :
As shown above, Pacific Star has already been 83% sold as at April 2018 (when the FY2017 annual report was released). And it was the LAST property project undertaken by the Company.
17% unsold properties equals RM187 mil. As Jaks owns 50% of its property division, the net unsold amount is hence RM93.5 mil. I think it is a bit of an exaggeration to say that the Group has " a lot of " unsold properties until it will drag the Group into losses over next few years.
The Company disclosed similar information in its Rights Issue Prospectus dated 21 November 2018.
Based on the above information, my understanding is that the Group no longer has much exposure to the depressed local property industry, apart from losses related to operation of Evolve Concept Mall at approximately RM30 mil per annum and Pacific Star LADs, which should end by mid 2019 following completion of the project. Jaks has 50% exposure to these two items.
https://klse.i3investor.com/blogs/icon8888/186385.jsp
"As you know the company has a lot of unsold properties and under the current depressed market condition, it will not be able to sell its properties."
His concern is that this will drag the Group into losses for many years to come.
As shown above, Pacific Star has already been 83% sold as at April 2018 (when the FY2017 annual report was released). And it was the LAST property project undertaken by the Company.
17% unsold properties equals RM187 mil. As Jaks owns 50% of its property division, the net unsold amount is hence RM93.5 mil. I think it is a bit of an exaggeration to say that the Group has " a lot of " unsold properties until it will drag the Group into losses over next few years.
The Company disclosed similar information in its Rights Issue Prospectus dated 21 November 2018.
Based on the above information, my understanding is that the Group no longer has much exposure to the depressed local property industry, apart from losses related to operation of Evolve Concept Mall at approximately RM30 mil per annum and Pacific Star LADs, which should end by mid 2019 following completion of the project. Jaks has 50% exposure to these two items.
https://klse.i3investor.com/blogs/icon8888/186385.jsp
