JAKS

JAKS

Postby winston » Wed Dec 12, 2018 8:09 pm

JAKS- My Advice

By Koon Yew Yin

I have already admitted my expensive Rm 64 million mistake because I was focusing too much on its power plant in Vietnam and ignored its property and contracting businesses.


http://koonyewyin.com/2018/12/11/jaks-my-advice/
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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winston
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Re: JAKS

Postby winston » Thu Aug 22, 2019 2:45 pm

Jaks Resources up 6.71% on solid 2Q earnings

by Surin Murugiah

KUALA LUMPUR (Aug 22): Jaks Resources Bhd shares rose 6.71% this morning after its net profit jumped nearly three times in the second quarter ended June 30, 2019 (2QFY19) to RM37.29 million against RM12.74 million a year ago, as it recorded higher earnings in its construction division, contributed by engineering, procurement and construction works in Vietnam.

At 9.01am, Jaks added 5.5 sen to 87.5 sen for a market capitalisation of RM562.73 million.

Quarterly revenue rose by 86% year-on-year to RM315.43 million, against RM169.99 million previously.

The better 2QFY19 earnings boosted the group’s net profit for the first half of FY19, which surged 116% to RM65.91 million from RM30.58 million a year ago (1HFY18), as revenue increased 65% to RM613.23 million from RM372.5 million.

Source: The Edge

https://www.theedgemarkets.com/article/ ... q-earnings
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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Re: JAKS

Postby winston » Wed Jan 01, 2020 8:01 am

not vested

JAKS: investors must not buy in anticipation of future profit

by Koon Yew Yin

Jaks secured the contract to construct 2 X 600 MW coal power plant to sell electricity to the Vietnamese Authorities on 28 Oct 2010.

Jaks could not start construction work for many years and it has been requesting for contract extension from the Vietnamese Government.

Jaks finally sold 70% of the contract to China power Engineering Consulting Company (CPECC).


The power plant construction is not completed yet and it has not reported any profit from selling electricity.

Unfortunately, Mr Ooi Teik Bee, has already circulated his projected profit recommendation to all his subscribers and followers.

You should not buy Jaks now. You should only start to buy when it can show increasing profit for 2 consecutive quarters from its power generation in Vietnam.


Jaks is basically a construction contractor and a property developer.

A few years ago, the CEO Andy Ang, in joint venture with Jaks to undertake the development of Star Media’s 6 acres of the land in Petaling Jaya, KL. which has planning permission for 2 office tower blocks in front and 3 high rise condominium blocks at the back. All these 5 blocks of high rise buildings are sitting on a 4 storey under round car park.

Since the JV did not pay for the land, it has agreed to give one of the 2 office blocks and Rm 50 million performance bank guarantee to Star Media.

Up to date, Andy Ang and Jaks JV could not complete the development project and the High Court has passed judgement for in favour of Star to forfeit the Rm 50 million performance guarantee. Moreover, Star and many other buyers are suing Jaks for the completion delay.

Under the circumstances, I suspect Andy Ang has sold his share in the JV to Jaks, which he did not require to call an EGM to seek shareholders’ approval. I also suspect, a large portion of this huge development are not sold.

From my long experience in property development, I have not seen so many unsold properties in every town and city before. It will take more than 10 years to resolve this problem.


Jaks has another big financial problem in its Evolve Mall development.

Investors must also not forget that bank interest charges can be capitalised and it is not shown in the profit and loss account.


https://klse.i3investor.com/blogs/koonyewyinblog/
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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Re: JAKS

Postby winston » Mon Feb 10, 2020 8:34 am

not vested

JAKS' future is hopeless

by Koon Yew Yin

I read Mr Ooi Teik Bee’s buy recommendation on Jaks. With due respect to him, I am writing this article with honest intention. I have no reason to break Mr Ooi’s rice bowl. Nevertheless, I hate to see investors being misled and lose money eventually.

I am ashamed to admit that I have lost a huge amount of money because I bought Jaks in anticipation of its profit from its power plant project in Vietnam. I hate to see investors make the same mistake as I made before.

JAKS is basically a construction contractor and a property developer. From the Company Registrar, you can check that Jaks is registered under construction and property development. It owns the Evolve Shopping Mall and the condominiums. It is currently developing the 6 acres of land owned by Star Media.

Since Jaks did not pay for the land, it provided a Rm 50 million performance bank guarantee. Since Jaks could not complete the project for several years, the High Court has allowed Star to forfeit the Rm 50 million performance guarantee.

The Star project consists of 2 office tower blocks in front and 3 high rise condominium at the back. All these high-rise buildings are sitting on a 4-storey under- ground car park. One of the 2 office blocks is built for Star in exchange for the land cost.

Even if Jaks can manage to borrow more money to complete the project, it will have great difficulties to sell all the offices and condominiums. Investors must remember that bank interest charges can be capitalised as part of the development cost and you cannot see it in its current quarterly report.

I remember the CEO, Andy Ang owned 49% or 51 % in joint venture with Jaks in the Star project. I doubt Andy can borrow so much money to maintain his share of the Joint Venture. Did he sell his share to Jaks? Investors must ask this very important question.

I have been a co-founder of IJM Corporation Bhd and a few other listed companies involved in property development, I have never seen so many unsold properties in my life. No one knows when this property glut problem can be resolved.

Property prices will continue to drop for many more years to come. Now many property developers are already in liquidation or in bankruptcies because the banks are recalling back the loans. Moreover, the banks have increased the buyers’ down payment from 10% to 30 %. As a result, property developers cannot sell their products.

Currently Jaks is reporting its profit from its sale of 70% of power plant contract to a Chinese party which may looks very attractive. Unless its projected profit from its 30% interest of the power plant project when completed can cover the losses from its property development business, it is not safe to buy Jaks because its profit growth prospect is very bleak.

https://klse.i3investor.com/blogs/koonyewyinblog/
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