JAKS-IJM JV accepts RM268.5m Pahang-Selangor raw water transfer project

Written by Joseph Chin Thursday, 02 December 2010 18:41

KUALA LUMPUR: JAKS Resources Bhd and its joint venture partner IJM CORPORATION BHD [] have accepted the award for the RM268.53 million Pahang-Selangor raw water transfer project.

JAKS said on Thursday, Dec 2 its unit JAKS Sdn Bhd and IJM CONSTRUCTION [] Sdn Bhd had signed and accepted the letter of acceptance from the Ministry of Energy, Green TECHNOLOGY [] and Water.

The completion date of the project is May 30, 2014.

Taken from here...

JAKS up, RHB sees sum-of-parts FV at RM2

KUALA LUMPUR: JAKS Resources Bhd's share price advanced in mid-morning on Wednesday, April 14 after RHB Research sees sum-of-parts (SOP) fair value at RM2 due to Vietnam power plant, dam and property joint ventures.

At 11am, it was up 1.5 sen to 84.5 sen with 6.53 million shares done.

RHB Research said it believed the market has yet to fully reflect JAKS' power plant venture in Vietnam, which alone is worth RM676.8 million or RM1.54/share based on DCF.

"We thus estimate a SOP fair value for JAKS of RM2.00, which implies an upside of 141% from current levels," it said.

RHB Research believed JAKS' outlook is about to change for the better, given three major positive developments since Mar, which in its view will improve its financial position from FY10/10.

These include the joint development agreement by 51%-subsidiary Jaks Island Circle (JIC) and Star Publications to develop a piece of land in Petaling Jaya.

JAKS received a letter of award for CONSTRUCTION [] of the Paya Peda Dam in Besut, Terengganu for a total contract sum of RM333 million while it inked memorandum of agreements with various Vietnam authorities for a 2x600 MW coal-fired power plant in Hai Duong province near Hanoi.

"We believe the PPA has also been confirmed with Electricity of Viet Nam (EVN), which is Vietnam's national power utility," it said.

Written by Joseph Chin

Vietnam Focus – On a recovery pathMarket Update

Vietnam Focus – On a recovery pathMarket
Update- Since our report on Vietnam in Jun 2008 and the significant market correction, latest technical indicators suggest that conditions have bottomed and are on a recovery path.
- The recovery in the Vietnam stock market mirrors the brighter outlook for the country’s economy. As it stands, we highlight Vietnam’s GDP growth of 6.4% for 2010, 88.6m population, and the government’s efforts to attract foreign investments.
- We see significant opportunities in the power sector, given the inadequate power supply infrastructure and the country’s plans to shift its reliance on hydropower to coal. We highlight that JAKS Resources last week signed agreements for a 1,200MW coal-fired IPP to come onstream in 2014-2015.
- The property plays of 2007 such as Gamuda, SP Setia and Berjaya Land are still there, and interestingly,other companies like MRCB are now also scouting for property projects in Vietnam.
- Since 2008, we note that manufacturers like Box-Pak have expanded their operations in Vietnam while furniture manufacturers such as Poh Huat and Latitude Tree are generating almost all their profits from their Vietnam operations. Global economic recovery and favourable operating conditions will likely continue to maintain this growth trend.
- Overall, while the recovery is still at an early stage, we believe the outlook for Malaysian companies in Vietnam is positive. In particular, we highlight Box-Pak (FV = RM2.35), JAKS (FV = RM2.00), and Parkson (FV = RM6.40) where we see significant growth potential.