There was an interesting article in The Edge written by Joesph Chin on 9 April 2010.
I copy it t wholesale so that the essence of the piece remains intact.
"KUALA LUMPUR: JAKS Resources Bhd's share price was at its highest since August last in morning trade on Friday, April 9 as analysts were upbeat about its joint venture to build a 2 X 600 megawatt (MW) coal-fired power plant in Vietnam. It opened at 92.5 sen. However, lack of follow through buying saw it ending the morning session unchanged at 90.5 sen with 14.27 million shares done. Year-to-date the share price is up 27 sen or 42.5% from its closing price of 63.5 sen on Dec 31, 2009. Over the past week, its share price is up six sen.
RHB Research Institute expects JAKS Resources Bhd's earnings to be diversified and boosted by its joint venture to build a 2 X 600 megawatt (MW) coal-fired power plant in Vietnam. The research house said it was positive about the independent power project (IPP) as it would diversify and boost its earnings base in 2014-2015. "The project is believed to be the first foreign-owned IPP to sign its power purchase agreement (PPA) with EVN (Vietnam Electricity) and potentially opens the door to more power projects in Vietnam given the shortage of installed capacity.
"Meantime, JAKS's CONSTRUCTION division will be supported by an order book believed to be over RM500 million over the next two to three years, while the pipe manufacturing division will remain dependent on the upgrading of the water supply infrastructure in Malaysia," it said. On Thursday, JAKS teamed up with China Huadian Corporation's unit for the IPP in Hai Duong Province, Vietnam. The project would be undertaken under a build-operate-transfer (BOT) structure and run as an independent power plant (IPP) with a 25-year power purchase agreement (PPA) with Vietnam Electricity. At the expiry of the concession term, JAKS will transfer the plant to Vietnam's Ministry of Industry and Trade."
RHB Research Institute expects JAKS Resources Bhd's earnings to be diversified and boosted by its joint venture to build a 2 X 600 megawatt (MW) coal-fired power plant in Vietnam. The research house said it was positive about the independent power project (IPP) as it would diversify and boost its earnings base in 2014-2015. "The project is believed to be the first foreign-owned IPP to sign its power purchase agreement (PPA) with EVN (Vietnam Electricity) and potentially opens the door to more power projects in Vietnam given the shortage of installed capacity.
"Meantime, JAKS's CONSTRUCTION division will be supported by an order book believed to be over RM500 million over the next two to three years, while the pipe manufacturing division will remain dependent on the upgrading of the water supply infrastructure in Malaysia," it said. On Thursday, JAKS teamed up with China Huadian Corporation's unit for the IPP in Hai Duong Province, Vietnam. The project would be undertaken under a build-operate-transfer (BOT) structure and run as an independent power plant (IPP) with a 25-year power purchase agreement (PPA) with Vietnam Electricity. At the expiry of the concession term, JAKS will transfer the plant to Vietnam's Ministry of Industry and Trade."
Well, what do you think?
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