Stock on the move: Online debate if JAKS worth a punt


Moody's outlook on the Korean banking system has been negative since May 2016.

KUALA LUMPUR: Shares in JAKS Resources Bhd is on a retreat from a 12-year high on what seems to be some mild profit taking activities following the stock’s recent price surge. 

At 3.24pm, it was down five sen to RM1.67 but it is up 66% year-to-date. 

There is an interesting debate online on whether JAKS, which made a loss of RM24mil in its last quarter ended Dec 31, 2016, is actually worth a punt.

The huge loss in the last quarter put the company barely in the black for the full year.

But one of its substantial shareholders has launched a spirited defense of the company online. 

Koon Yew Yin, who together with his wife had amassed 129.2 million shares in JAKS in recent months, said the company commands a higher valuation largely based on its power plant potentials.

Koon is one of the co-founder of Gamuda Bhd, IJM Bhd and Mudajaya Bhd.

JAKS and its Chinese partner, are building a 1,200mw coal-fired power plant in Vietnam. The project is expected to be completed by 2020, with a concession period of 25 years.

Critics argued that is a long way off and there is still construction risks that needed to be factored in.

Win a prize this Mother's Day by subscribing to our annual plan now! T&C applies.

Monthly Plan

RM13.90/month

Annual Plan

RM12.33/month

Billed as RM148.00/year

1 month

Free Trial

For new subscribers only


Cancel anytime. No ads. Auto-renewal. Unlimited access to the web and app. Personalised features. Members rewards.
Follow us on our official WhatsApp channel for breaking news alerts and key updates!

   

Next In Business News

Industrial projects look increasingly attractive
Yew Lee expects to return to profitability on wider customer base
Changing office space requirements
Fed dampens hopes for rate cut
F&N to use cost management measures
Demand for co-working space remains resilient
Naza makes entry into green economy
CapBay aims to provide financing to more SMEs
New initiative for infrastructure needs in Perak
Ocean Fresh seeks ACE Market listing

Others Also Read