Dear all,
I do not hold any JAKS share but I need answer to following questions for me to have a better valuation on JAKS. Since I am not a shareholder I need someone qualified as shareholder to email the following questions to JAKS email address: info@jaks.com.my question for the upcoming JAKS AGM Q&A session.
Thank you
A. Pacific Star Project and MNH’s Evolve Mall
Refer:
2014 Annual report: The project at Section 13, Petaling Jaya known as Pacific Star had commenced its operation in August 2012 with a GDV of approximately RM1.2 billion and is expected to be completed by next year. It is a mixed development project comprises 2 commercial blocks of 14 storeys (STAR Office Building) and 16 storeys (Signature Office Suites), 3 service apartment blocks of 24 to 33 storeys, 4 storeys of retail spaces, 4 level of basement car park and 4th to 8th floor elevated car park. The STAR Office Building is to be transferred to Star Publications (Malaysia) Berhad for the settlement of the land purchased.
2015 Annual report: The mixed development project at Section 13, Petaling Jaya known as Pacific Star has achieved sales of RM536 million, being 49% of the total GDV of approximately RM1.1 billion. The commercial blocks of 14-storeys Menara Star 2 is expected to be handed over to Star Publications (Malaysia) Berhad, for the settlement of the land purchased, by end August 2016.
2016 Annual report: The current ongoing mixed development project at Section 13, Petaling Jaya known as Pacific Star has achieved sales to-date of RM575 million (2015: RM536 million), being 58% of the total GDV of approximately RM1.1 billion. The expected handover date will be in 2nd half of 2017.
2017 Annual report: The current ongoing mixed development project at Section 13, Petaling Jaya known as Pacific Star has achieved sales to-date of RM915 million (2016 : RM575 million), being 83% of the total GDV of approximately RM1.1 billion. The Pacific Star project is expected to complete by end 2018 and this will reflect our exit from property development for the time being.
2018 Annual report: The current ongoing mixed development project at Section 13, Petaling Jaya known as Pacific Star achieved sales to-date of RM951 million (2017 : RM915 million), being 86% of the total gross domestic value (“GDV”) of approximately RM1.1 billion. The GDV and sales to-date included the Pacific Star Business Hub (“Business Hub”) which was sold to another subsidiary within the Group. The Pacific Star project is expected to complete by end-2019
Refer above 2015-2018 Annual report: Pacific Star had commenced its operation in August 2012 with a GDV of approximately RM1.2 billion: Completion date: By end August 2016: Expected handover date will be in 2nd half of 2017: Expected to complete by end 2018: Expected to complete by end-2019.
Question A1: Expected handover had been delay from original end august 2016 to end-2019. What are the reasons for missing/delay the expected handover date?
Refer: http://www.bursamalaysia.com/market/listed-companies/company-announcements/6180457
Question A3: What is the fact and basic that JAKS will be successful in claim against STAR? And how much already spend in legal fees so far?
Refer page 98:
Proportion of equity interest held by non-controlling interest in:
JAKS Island Circle Sdn. Malaysia Bhd. (“JIC”): 49%
MNH Global Assets Malaysia Management Sdn. Bhd.(“MNH”): 49%
Fortress Pavilion Sdn. Bhd. Malaysia (“FP”): 49%
Question A4: What is the paid up capital of JIC, MNH and FP? Who are the 49% equity holders? What are their rule and contribution they play in these subsidiary companies?
Refer: Page 100
Question A5: As of 31th December 2018. JIC equity is negative RM 89,386,949 any plan to top up paid-up capital for JIC?
Question A6: Can Board arrange a site tour to Star Pacific this afternoon for those shareholders interest to see the site progress? Had external auditor visited the site and have no disclaimer on 2018 annual report statement: The Pacific Star project is expected to complete by end-2019?
Question A7: Has Jaks completed the Star Tower, 3 service Resident apartment blocks of 24 to 33 storeys, 16 storeys Signature Office Suites, 4 storeys of retail spaces, 4 levels of basement car park and submitted documents to regulatory authority for Certificate of Fitness? If yes please show copies of documents and if no when will this Certificate of Fitness be readied?
Refer page 99: Comprehensive income for the year ended 31 December 2018:
MNH: Revenue: 8,764,529 Expenses including taxation: (41,725,649). Net Loss: (32,961,120)
Comprehensive income for the year ended 31 December 2017:
NH: Revenue: 13,192,007 Expenses including taxation: (45,483,738). Net Loss: (32,291,731)
Question A8: MNH revenue reduces from 13,192,007 in Year 2017 to 8,764,529 Year 2018. What are management plan for Evolve mall? When will Evolve Mall expected to breakeven? What is the latest status on the sales of Evolve Mall and what price will it fetch?
B. JAKS Sdn Bhd local construction project
Refer page 13:
The current on-going construction projects in Malaysia are:
(i) Four (4) waste water and water-related facilities projects with a total contract sum of RM681.1 million;
(ii) One (1) construction of road-works projects with a contract sum of RM508.5 million;
(iii) One (1) building construction project with a contract sum of RM83.1 million; and
(iv) One (1) property construction works project with a contract sum of RM622.2 million.
The Construction division contributed profit before tax of RM82.1 million to the Group’s profit before tax, of which RM82.6 million of the profit before tax was derived from the Vietnam EPC 2 contract. Local construction Revenue: RM303.6 million. Profit before tax RM (82.1-82.6) = Negative RM 0.5 million
Question B1: What are the reason the local construction project making a loss of RM 0.5 million.
Question B2: Any of the local construction projects progress behind contractual schedule and at risk of late delivery penalty or contract termination?
C. Golden Keen Holdings Limited (EPC 2 contract: USD454.5 million works in Vietnam Power plant)
2018 Revenue: RM324.7 million. Profit before tax: RM82.6 million
2017 Revenue: RM251.2 million. Profit before tax: RM55.1 million
2016 Revenue: RM150.1 million. Profit before tax: RM36.2 million
2019 Q1 revenue: RM255.8 million. Profit before tax (EPC2 and local): RM58.3million
http://www.bursamalaysia.com/market/listed-companies/company-announcements/6130745
Under the Proposed Private Placement, the proceeds to be raised of up to RM39.43 million will be used for the payment of additional equipment required, as well as the additional costs that have arisen from the progress of the Vietnam Power Plant Project, in particular, the contractors’ progress claims, fabrication of equipment and services rendered in relation to the construction and engineering works for the jetty and administration building.
The earmarked RM10.0 million of the proceeds will be utilised to fund the preliminary expenses relating to exploring Renewable Energy Projects. The expenses will mainly comprise of, amongst others, feasibility and engineering studies (inclusive of geotechnical and topographical studies), environmental and social impact assessment as well as legal and regulatory related expenses.
Question C1: So far profit generated (2016 - 2018) amounting to RM173.9 million from Golden Keen Holdings Limited? How is this profit been utilized?
Question C2: Is Golden Keen Holdings Limited facing cash-flow problem? Thus needed recent capital raising Private Placement to pay for Vietnam Power Plant Project?
Question C3: As at 31th March 2019, JAKS 30% associate company (JAKS Pacific Power Limited) still needs USD92.14 million equity capitals paid-up, what is the expected profit on the balance EPC2 contract? Can this profit enough to cover the equity capital paid up of USD 92.14 million for JPP?
Question C4: Please explain why the urgent need for RM 10 million exploring Renewable Energy Projects when capital is needed to complete construction project both local and EPC2?
Question C5: Any plan for another PP or Right Issue in year 2020?
D: 1200 MW coal-fired Hai Duong, Vietnam power plant.
Jaks together with CPECC, is constructing a BOT1200MW coal-fired power plant, with an estimated cost of US$1.87bn with 25 years concession and power purchase agreement with Viet Nam Electricity (EVN).
US$1.4bn (75% of project cost) already secured back in September 2015 from Industrial and Commercial Bank of China, China Construction bank Corporation and Export-Import Bank of China.
75% bank borrowing with Equity 25%: CPECC 70%: US$ 327 million and JAKS’ 30%: US$140.1million.
Power purchase agreement with Viet Nam Electricity (EVN):
Question D1: What is the fix capacity make available charge/payment per MW per day?
Question D2: Is the MWhr electricity supply tariff included:
BOT1200MW coal-fired power plant, cost of US$1.95bn project with 25 years concession and power purchase agreement with Viet Nam Electricity (EVN).
75%:25% debt to equity financing: AES (51%), Posco Energy Corporation (30%) and China Investment Corporation (19%)
Operation: April 22, 2015
From AES quarterly financial presentation:
Subsidiary Distributions
2016: Mong Duong: Year to date: US$46 million
2017: Mong Duong: Year to date: US$51 million
2018: Mong Duong: Year to date: US$45 million
Jaks only hold 30% on JAKS Hai Duong Power Company Limited.
Questions D3: What is the dividend/distribution policy of JAKS Hai Duong Power Company Limited?
Questions D4: As 30% associate when can JAKS expect to receive the dividend from JAKS Hai Duong Power Company Limited? And the expected amount of dividend received per quarterly or half yearly for the BOD period of 25 years?
E: JAKS Resources Berhad (“Company”)’s Long Term Incentive Plan (“LTIP”)
http://www.bursamalaysia.com/market/listed-companies/company-announcements/6054921
Executive Director/Chief Executive Officer: 27,625,760
Senior Management: 10,645,800
Other Selected Employees/Executives: 438,200
MR ANG LAM POAH: 08-Feb-2019: 25,164,960
DATO' RAZALI MERICAN BIN NAINA MERICAN: 08-Feb-2019: 2,460,800
Question E1: Why grant LTIP at this time when company performance and share price perform badly?
Question E2: Please provide the list of senior managers granted the LTIP and the amount?
Question E3: How many of the senior managers already sold their granted LTIP and Why?
I do not hold any JAKS share but I need answer to following questions for me to have a better valuation on JAKS. Since I am not a shareholder I need someone qualified as shareholder to email the following questions to JAKS email address: info@jaks.com.my question for the upcoming JAKS AGM Q&A session.
Thank you
A. Pacific Star Project and MNH’s Evolve Mall
Refer:
2014 Annual report: The project at Section 13, Petaling Jaya known as Pacific Star had commenced its operation in August 2012 with a GDV of approximately RM1.2 billion and is expected to be completed by next year. It is a mixed development project comprises 2 commercial blocks of 14 storeys (STAR Office Building) and 16 storeys (Signature Office Suites), 3 service apartment blocks of 24 to 33 storeys, 4 storeys of retail spaces, 4 level of basement car park and 4th to 8th floor elevated car park. The STAR Office Building is to be transferred to Star Publications (Malaysia) Berhad for the settlement of the land purchased.
2015 Annual report: The mixed development project at Section 13, Petaling Jaya known as Pacific Star has achieved sales of RM536 million, being 49% of the total GDV of approximately RM1.1 billion. The commercial blocks of 14-storeys Menara Star 2 is expected to be handed over to Star Publications (Malaysia) Berhad, for the settlement of the land purchased, by end August 2016.
2016 Annual report: The current ongoing mixed development project at Section 13, Petaling Jaya known as Pacific Star has achieved sales to-date of RM575 million (2015: RM536 million), being 58% of the total GDV of approximately RM1.1 billion. The expected handover date will be in 2nd half of 2017.
2017 Annual report: The current ongoing mixed development project at Section 13, Petaling Jaya known as Pacific Star has achieved sales to-date of RM915 million (2016 : RM575 million), being 83% of the total GDV of approximately RM1.1 billion. The Pacific Star project is expected to complete by end 2018 and this will reflect our exit from property development for the time being.
2018 Annual report: The current ongoing mixed development project at Section 13, Petaling Jaya known as Pacific Star achieved sales to-date of RM951 million (2017 : RM915 million), being 86% of the total gross domestic value (“GDV”) of approximately RM1.1 billion. The GDV and sales to-date included the Pacific Star Business Hub (“Business Hub”) which was sold to another subsidiary within the Group. The Pacific Star project is expected to complete by end-2019
Refer above 2015-2018 Annual report: Pacific Star had commenced its operation in August 2012 with a GDV of approximately RM1.2 billion: Completion date: By end August 2016: Expected handover date will be in 2nd half of 2017: Expected to complete by end 2018: Expected to complete by end-2019.
Question A1: Expected handover had been delay from original end august 2016 to end-2019. What are the reasons for missing/delay the expected handover date?
Refer: http://www.bursamalaysia.com/market/listed-companies/company-announcements/6180457
- A declaration that the Completion Period for JIC to deliver STAR’s entitlement under the SPA is on 20 June 2020:
Question A3: What is the fact and basic that JAKS will be successful in claim against STAR? And how much already spend in legal fees so far?
Refer page 98:
Proportion of equity interest held by non-controlling interest in:
JAKS Island Circle Sdn. Malaysia Bhd. (“JIC”): 49%
MNH Global Assets Malaysia Management Sdn. Bhd.(“MNH”): 49%
Fortress Pavilion Sdn. Bhd. Malaysia (“FP”): 49%
Question A4: What is the paid up capital of JIC, MNH and FP? Who are the 49% equity holders? What are their rule and contribution they play in these subsidiary companies?
Refer: Page 100
Question A5: As of 31th December 2018. JIC equity is negative RM 89,386,949 any plan to top up paid-up capital for JIC?
Question A6: Can Board arrange a site tour to Star Pacific this afternoon for those shareholders interest to see the site progress? Had external auditor visited the site and have no disclaimer on 2018 annual report statement: The Pacific Star project is expected to complete by end-2019?
Question A7: Has Jaks completed the Star Tower, 3 service Resident apartment blocks of 24 to 33 storeys, 16 storeys Signature Office Suites, 4 storeys of retail spaces, 4 levels of basement car park and submitted documents to regulatory authority for Certificate of Fitness? If yes please show copies of documents and if no when will this Certificate of Fitness be readied?
Refer page 99: Comprehensive income for the year ended 31 December 2018:
MNH: Revenue: 8,764,529 Expenses including taxation: (41,725,649). Net Loss: (32,961,120)
Comprehensive income for the year ended 31 December 2017:
NH: Revenue: 13,192,007 Expenses including taxation: (45,483,738). Net Loss: (32,291,731)
Question A8: MNH revenue reduces from 13,192,007 in Year 2017 to 8,764,529 Year 2018. What are management plan for Evolve mall? When will Evolve Mall expected to breakeven? What is the latest status on the sales of Evolve Mall and what price will it fetch?
B. JAKS Sdn Bhd local construction project
Refer page 13:
The current on-going construction projects in Malaysia are:
(i) Four (4) waste water and water-related facilities projects with a total contract sum of RM681.1 million;
(ii) One (1) construction of road-works projects with a contract sum of RM508.5 million;
(iii) One (1) building construction project with a contract sum of RM83.1 million; and
(iv) One (1) property construction works project with a contract sum of RM622.2 million.
The Construction division contributed profit before tax of RM82.1 million to the Group’s profit before tax, of which RM82.6 million of the profit before tax was derived from the Vietnam EPC 2 contract. Local construction Revenue: RM303.6 million. Profit before tax RM (82.1-82.6) = Negative RM 0.5 million
Question B1: What are the reason the local construction project making a loss of RM 0.5 million.
Question B2: Any of the local construction projects progress behind contractual schedule and at risk of late delivery penalty or contract termination?
C. Golden Keen Holdings Limited (EPC 2 contract: USD454.5 million works in Vietnam Power plant)
2018 Revenue: RM324.7 million. Profit before tax: RM82.6 million
2017 Revenue: RM251.2 million. Profit before tax: RM55.1 million
2016 Revenue: RM150.1 million. Profit before tax: RM36.2 million
2019 Q1 revenue: RM255.8 million. Profit before tax (EPC2 and local): RM58.3million
http://www.bursamalaysia.com/market/listed-companies/company-announcements/6130745
Under the Proposed Private Placement, the proceeds to be raised of up to RM39.43 million will be used for the payment of additional equipment required, as well as the additional costs that have arisen from the progress of the Vietnam Power Plant Project, in particular, the contractors’ progress claims, fabrication of equipment and services rendered in relation to the construction and engineering works for the jetty and administration building.
The earmarked RM10.0 million of the proceeds will be utilised to fund the preliminary expenses relating to exploring Renewable Energy Projects. The expenses will mainly comprise of, amongst others, feasibility and engineering studies (inclusive of geotechnical and topographical studies), environmental and social impact assessment as well as legal and regulatory related expenses.
Question C1: So far profit generated (2016 - 2018) amounting to RM173.9 million from Golden Keen Holdings Limited? How is this profit been utilized?
Question C2: Is Golden Keen Holdings Limited facing cash-flow problem? Thus needed recent capital raising Private Placement to pay for Vietnam Power Plant Project?
Question C3: As at 31th March 2019, JAKS 30% associate company (JAKS Pacific Power Limited) still needs USD92.14 million equity capitals paid-up, what is the expected profit on the balance EPC2 contract? Can this profit enough to cover the equity capital paid up of USD 92.14 million for JPP?
Question C4: Please explain why the urgent need for RM 10 million exploring Renewable Energy Projects when capital is needed to complete construction project both local and EPC2?
Question C5: Any plan for another PP or Right Issue in year 2020?
D: 1200 MW coal-fired Hai Duong, Vietnam power plant.
Jaks together with CPECC, is constructing a BOT1200MW coal-fired power plant, with an estimated cost of US$1.87bn with 25 years concession and power purchase agreement with Viet Nam Electricity (EVN).
US$1.4bn (75% of project cost) already secured back in September 2015 from Industrial and Commercial Bank of China, China Construction bank Corporation and Export-Import Bank of China.
75% bank borrowing with Equity 25%: CPECC 70%: US$ 327 million and JAKS’ 30%: US$140.1million.
Power purchase agreement with Viet Nam Electricity (EVN):
Question D1: What is the fix capacity make available charge/payment per MW per day?
Question D2: Is the MWhr electricity supply tariff included:
- Coal pass-through with certain coal efficiency?
- Maintenance cost pass-through? How much per month?
- Operation cost pass-through? How much per month?
- Overhead cost pass-through? How much per month?
- Any other cost pass-through? How much per month?
- What will be the Net profit before tax per MWhr after all these cost pass-through?
BOT1200MW coal-fired power plant, cost of US$1.95bn project with 25 years concession and power purchase agreement with Viet Nam Electricity (EVN).
75%:25% debt to equity financing: AES (51%), Posco Energy Corporation (30%) and China Investment Corporation (19%)
Operation: April 22, 2015
From AES quarterly financial presentation:
Subsidiary Distributions
2016: Mong Duong: Year to date: US$46 million
2017: Mong Duong: Year to date: US$51 million
2018: Mong Duong: Year to date: US$45 million
Jaks only hold 30% on JAKS Hai Duong Power Company Limited.
Questions D3: What is the dividend/distribution policy of JAKS Hai Duong Power Company Limited?
Questions D4: As 30% associate when can JAKS expect to receive the dividend from JAKS Hai Duong Power Company Limited? And the expected amount of dividend received per quarterly or half yearly for the BOD period of 25 years?
E: JAKS Resources Berhad (“Company”)’s Long Term Incentive Plan (“LTIP”)
http://www.bursamalaysia.com/market/listed-companies/company-announcements/6054921
Executive Director/Chief Executive Officer: 27,625,760
Senior Management: 10,645,800
Other Selected Employees/Executives: 438,200
MR ANG LAM POAH: 08-Feb-2019: 25,164,960
DATO' RAZALI MERICAN BIN NAINA MERICAN: 08-Feb-2019: 2,460,800
Question E1: Why grant LTIP at this time when company performance and share price perform badly?
Question E2: Please provide the list of senior managers granted the LTIP and the amount?
Question E3: How many of the senior managers already sold their granted LTIP and Why?
https://klse.i3investor.com/blogs/Sslee_blog/210928.jsp
