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/
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.
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.
Users browsing this forum: No registered users and 7 guests