tag:blogger.com,1999:blog-17708300.post1888085863294240559..comments2023-10-25T21:25:46.183+08:00Comments on Where is Ze Moola: SC Article On Mudajaya Reveals Serious Allegations Made Against MudajayaUnknownnoreply@blogger.comBlogger7125tag:blogger.com,1999:blog-17708300.post-42361494655907993182010-12-30T21:50:56.388+08:002010-12-30T21:50:56.388+08:00The cost of IPP depends on the specifications and ...The cost of IPP depends on the specifications and quality so as motocar. All cars with same cc will cost differently. Just compare proton 1.8 litre with continental car with 1.8 litre. The price difference is huge. Using cost per/MW as argument is just lame justification.<br /><br />By the way, has anyone considered the possibility of Indian Partner reducing their investment price in order for Mudajaya to increase theirs. Then there will be no inflation of cost for the plant. CIMB, pls do your homework!<br /><br />Companies recover their investment thru profit from contract awarded back is to a certain extend normal but must be arms length and it must be done without round tripping. I mean investment must be paid up first then only recover your investment over time. In Mudajaya's case it is earn a bit from procurement contract and then pay for the capital in IPP also by a bit. The process is repeated over and over. Any donkeys also can raise capital in that manner.<br /><br />How much Mudajaya was given profits to recover their basic/original investment cost is unknown. However, it is certain that they are given the profits to pay for portion of investment that has been inflated, the same portion of investment value that the Indian partner has deflated, I guess.abchttps://www.blogger.com/profile/10427067248806112692noreply@blogger.comtag:blogger.com,1999:blog-17708300.post-68052167739759515412010-10-08T14:55:21.534+08:002010-10-08T14:55:21.534+08:00Investment of associates should be the IPP project...Investment of associates should be the IPP project in India :) The money earned from the construction of the project is plowed back into the IPP project as part of its 26% equity stake commitment. So, can't really say there's no wealth creation as Mudajaya is bound to reap its harvest from India once the IPP starts operation. The question is whether the earnings from IPP could justify the RM871 million being plowed into the IPP project. Mudajaya will be putting another RM671 million over the next two years into investment of associates. That will equal about RM80 mil per quarter.<br /><br />As for valuation of Mudajaya, I will not put its construction earnings from IPP together with its 26% stake in IPP like what is done by CIMB. Instead, valuation should only include its 26% stake in IPP and exclude its earnings from IPP construction as construction profits are channeled back to the IPP anyway. By excluding IPP construction earnings, its earnings should be halved, probably about RM140-160m. <br /><br />Simple valuation: RM1800m (Construction earnings PER 12x) + RM800m 26% stake in IPP + RM30m properties. Work out to be RM6.40 per share. Hope this helps :)David Khttps://www.blogger.com/profile/17161435190080943745noreply@blogger.comtag:blogger.com,1999:blog-17708300.post-19281446726697414452010-10-08T13:47:14.008+08:002010-10-08T13:47:14.008+08:00Round tripping” as we know it. Based on our unders...Round tripping” as we know it. Based on our understanding, round-tripping implies<br />a scenario where an entity has ownership of a concession and, at the same time,<br />recognises profits from the construction/development of the concession asset. This<br />structure is commonly practised by infrastructure specialists for various concession<br />assets including toll highways, power plants, railways, and water. Although the SC is<br />looking into round tripping, we note that this will be on a general level and does not<br />necessarily have negative implications for Mudajaya’s IPP structure.<br />In our 9 Aug 10 note, we highlighted that in Mudajaya's case, the total development<br />cost/per MW of US$0.9m for the 1,440MW power plant is 16% below the<br />standard/benchmark for existing IPPs in India of about US$1m-1.2m/MW. Given that<br />the group's Indian IPP is one of the cheapest ones around, there is arguably very little<br />basis for inflated round-tripping profits to begin with.<br /><br /><br /><br />The above is taken from CIMB research report on mudajaya today. Sound like round tripping is 'NORMAL' for infrstructure speacilist contractor. What say you?Unknownhttps://www.blogger.com/profile/06452951024162085336noreply@blogger.comtag:blogger.com,1999:blog-17708300.post-60371830616022758952010-10-08T12:00:27.992+08:002010-10-08T12:00:27.992+08:00round tripping is a criminal activity and ppl invo...round tripping is a criminal activity and ppl involved should be jailed! i can't believe SC only gave a warning. only in malaysia...wat a big letdown.<br /><br />and the investments in associates are always mind-boggling. like a black hole...Mr ICICIhttps://www.blogger.com/profile/12428931307225453905noreply@blogger.comtag:blogger.com,1999:blog-17708300.post-73312914156723595472010-10-08T11:53:54.879+08:002010-10-08T11:53:54.879+08:00This counter is 'dead' as far as investmen...This counter is 'dead' as far as investment funds are concerned. There is obvious dishonesty as the accounts go. The SC is prevaricating and being opague, as to whether to take action against the company and its directors, who by the way are well connected people. So much again for integrity of our enforcement agencies. Avoid this company and its directors. All rotten fish.!bonny bhttps://www.blogger.com/profile/06067749042575826587noreply@blogger.comtag:blogger.com,1999:blog-17708300.post-64346783745166029642010-10-08T11:05:11.095+08:002010-10-08T11:05:11.095+08:00sorry slow in posting. :P
bulk of cash went to &#...sorry slow in posting. :P<br /><br />bulk of cash went to 'investment of associates'.Moolahhttps://www.blogger.com/profile/16837745401820976707noreply@blogger.comtag:blogger.com,1999:blog-17708300.post-63190537033840075812010-10-08T10:05:38.172+08:002010-10-08T10:05:38.172+08:00was all the cash proceeds from the placement exerc...was all the cash proceeds from the placement exercise used for working capital purposes or part of it was for capex? if it is for capex, we might need to adjust for the increase in fixed assets.Mr ICICIhttps://www.blogger.com/profile/12428931307225453905noreply@blogger.com