JAKS - The Business Fundamental and Its Potential
Jaks Resources Bhd is an investment holding company with six main segments
- Manufacturing segment comprises mainly manufacturing of pipes;
- Trading segment comprises trading in sheet piles, steel bars, mild steel and special pipes, other steel related products, building materials and supply of products for water supply industry;
- Construction segment Comprise mainly provision of sub-contracting activities;
- Investment segment involves investment holding activities;
- Property Development and Property Investment segment is engaged in the development of residential and commercial properties and management of development shopping mall.
Its principal geographical areas for its operations are located in Malaysia and Vietnam.
For its Vietnam business, JAKS involves in building 2 x 600MW coal plant with guaranteed demand for 25 years and the "rent" or "service fee" will be paid by the government. Sounds like a good business right? YES. As of now, the coal plant are projected to be completed in Q3 2020 with 8 years to reach breakeven position with 12% IRR.
Fundamentally,
- JAKS has been profiting since 2013 consistently.
- EPS: 16.68
- PE Ratio: 5.9
- NTA: 1.52
- ROE: 10.97
Undervalued at this point of time suggesting the price should be at least at par with the NTA of 1.52. Kindly note that the ATH for JAKS now RM1.54.
Now? RM1.00, uptrend with 50% potential to ATH more to go while your business is secured up to 25 years :)
- Manufacturing segment comprises mainly manufacturing of pipes;
- Trading segment comprises trading in sheet piles, steel bars, mild steel and special pipes, other steel related products, building materials and supply of products for water supply industry;
- Construction segment Comprise mainly provision of sub-contracting activities;
- Investment segment involves investment holding activities;
- Property Development and Property Investment segment is engaged in the development of residential and commercial properties and management of development shopping mall.
Its principal geographical areas for its operations are located in Malaysia and Vietnam.
For its Vietnam business, JAKS involves in building 2 x 600MW coal plant with guaranteed demand for 25 years and the "rent" or "service fee" will be paid by the government. Sounds like a good business right? YES. As of now, the coal plant are projected to be completed in Q3 2020 with 8 years to reach breakeven position with 12% IRR.
Fundamentally,
- JAKS has been profiting since 2013 consistently.
- EPS: 16.68
- PE Ratio: 5.9
- NTA: 1.52
- ROE: 10.97
Undervalued at this point of time suggesting the price should be at least at par with the NTA of 1.52. Kindly note that the ATH for JAKS now RM1.54.
Now? RM1.00, uptrend with 50% potential to ATH more to go while your business is secured up to 25 years :)
Dagangan aktif:
Finally breakout resistance 1.06.