This article is meant for those too busy or too lazy to read the full version of this article
Jaks Resources - The Most Reliable Earnings Guidance for JHDP
https://klse.i3investor.com/blogs/Jaks%20resources/2020-05-01-story-h1506848575-Jaks_Resources_The_Most_Reliable_Earnings_Guidance_for_JHDP.jsp
An almost identical power plant to Jaks Hai Duong power plant (JHDP) in Vietnam, Vinh Tan 1 Power Plant which is also in Vietnam made RM652m in 2019 !
Vinh Tan 1 power plant commenced full operation in November 2018.
Therefore, JHDP is very likely to achieve a profit in RM652m in future after it commences operation in Q3 2020 with full operation in Q4 2020.
Jaks owns 30% in JHDP with an option to increase to 40%.
Hence, potential earnings to Jaks
@30% = RM652m x 30% = RM196m = EPS RM0.30
@40% = RM652m x 40% = RM261m = EPS RM0.40
This article concludes that JHDP is expected to deliver EPS of between RM0.30 to RM0.40 to Jaks. At PE of 10 to 15 times, Jaks is worth between RM3 to RM6.
Thank You
DK66
P/S: You are advised to reade the full version of the article.
https://klse.i3investor.com/blogs/Jaks%20resources/2020-05-05-story-h1506906335-Jaks_Resources_Vinh_Tan_1_Power_Plant_in_Vietnam_Made_RM652m_in_2019.jsp
