LY Low's comment on JAKS. All Comments

LY Low
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Sharing on JAKS's Detail

Company Background:
JAKS was founded in 1987 by Datuk Ang Ken Seng with the aim to be a major player in the water reticulation works. In fact, JAKS business actually started in 1960’s to provide plumbing services to residential premises.

Construction Prospect:
Estimated Outstanding Order Book: Approximately RM340million (as at 30 Sept 2020)

Although construction progress was interrupted during Covid-19 period, JAKS is confident that all construction projects are still on schedule. Besides that, due to the instability of the political situation in Malaysia, obtaining new construction projects has been a challenge. Moving forward, JAKS will continue to focus on its construction sector and actively tendering for projects in both local and overseas market.

Although contract flow has slowed down in the past 3 years, JAKS feels more bullish and optimistic with the approved Budget 2021 and look forward to new contracts being awarded.JAKS has submitted the tender for LSS4. Moreover as part of the management’s strategy JAKS will continue to expand grow its power business/division in Vietnam as there exists high demand electricity.

Power Plant - JAKS Hai Duong:
Based on the PPA, as long as the power plant generates energy for EVN, EVN needs to pay the guaranteed fixed amount of electricity payment (fixed capacity payment). JAKS Hai Duong power plant is estimated to generate between USD 600-700 million revenue per annum for 25 years.

JAKS has the option to increase its equity interest from 30% to 40% within the next 3 years:

JAKS Hai Duong has obtained tax incentives in Vietnam:
First 4 years after commercial operation date - 0%; Following 9 years - 5%, followed by 10% for the remaining term.

Does the coal price impact the company margins?
NO. JAKS is not affected by the rising trend of coal price, as Jaks has signed a 25-year contract with Vinacomin (local coal supplier), which not only ensures a stable supply of coal, but more importantly the coal prices are a pass through cost to EVN (Vietnam Electricity Corporation, equivalent to TNB Malaysia), therefore, fluctuating prices in materials doesn’t affect its margin.

JAKS Fair Value
Based on revenue, JAKS Hai Duong expected to earn USD 600 - 700m
Revenue : USD 650m = RM 2665m
20% PAT Margin : RM 533m

30% Jaks Portion : RM 160m
40% Jaks Portion : RM 213m

Share Unit : 1755m

EPS will be 9 cents (30%), and 12 cents (40%)

Based on energy PE, it is around PE 20 (Refer to TENAGA), why tenaga ? This is because TENAGA is the most stable company in BURSA. Therefore I assume PE 15 for JAKS

PE 15 X 9 cents = RM 1.35, if I discount 30%, it is just 94.5 cents. Current share price just 68 cents, the profit is around 39% which is minimum.

Disclaimer: This is not buy sell call, and i just sharing how I view JAKS and I believe 94.5 cents is easily achievable within 1 year. I am writing up this article to show you all the power of company value. Let see !
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mun yee
Good Sharing... Let's see for 1 year ... haha
Like · 3 years · translate
Calvin
Engine start liao gogogo jaks
Like · 3 years · translate
郭伟靖
go go go liao
Like · 3 years · translate
Sallehudin Noraladin
TFW EMA 50 touched EMA 200 & when EMA 50 crossed up high probability the trend will moved up
Like · 3 years · translate
Calvin
Very nice closing tmr gogogo
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Azim Zahri
gogo tp1: 0.805
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Sky Liew
rm1.28 gogogog
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Sky Liew
likw mfcb gogogogog
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fei mah
Will JAKS received its payments without any delay from EVN? I a bit concern about Vietnam credit rating is at BB.
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william tay chee guan
tomorrow 0.80
1 Like · 3 years · translate
H Azli Mz
wow very insightful explaination... vietnam power plan and bid for LSS 4
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sky kkk
gogo
Like · 3 years · translate
derf asfv
double turbo
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lit Li
How u guys think this counter should I cut loss now
1 Like · 3 years · translate
FRENIS Chong
I will hold it
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Syed Nazrin
Good sharing..
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lit Li
...how come this stock every day drop ?
1 Like · 3 years · translate
Kok Weng Onn
not only this lah...all also drop
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Chiang Chye Eng
this stock can be short selling.....
Like · 3 years · translate
Tat Chan
Gdex and Insas also kena
Like · 3 years · translate
Chiang Chye Eng
think short sellers wanna push down to 0.56 (1 month low).
Like · 3 years · translate
lit Li
Any support?if broke i need to run
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alien a
Afternoon going to jump
Like · 3 years · translate