Cypark Resources

Cypark Resources

Postby winston » Sat Oct 04, 2014 8:35 pm

not vested

Cypark gets RM26m housing contract in Johor

PETALING JAYA: Cypark Resources Bhd will build 116 terrace houses in Taman Bukit Dahlia, Pasir Gudang, Johor for RM26mil.

The contract period will be 15 months and the project is slated for completion by January 2016.

In a filing with Bursa Malaysia, the integrated environmental engineering and technology provider said the project would be carried out by its infrastructure and construction division.

“The works are expected to contribute positively to group earnings,” it said.

For the third quarter ended July 31, 2014, Cypark posted after-tax RM12.1mil, up 22% from RM9.9mil last year.

Revenue was RM66.6mil, 25% higher than RM53.4mil last year.

Cypark attributed the increase in after-tax profit to savings from tax incentive granted to renewable energy-related products.

Source: The Star
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Re: Cypark Resources

Postby winston » Sun Jun 07, 2015 10:32 am

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CYPARK RESOURCES BHD

Current share price: RM1.81

CYPARK manages waste landfills and solar farms in Negri Sembilan, Perlis, Pahang and Johor. There are various synergies in the company businesses. Treated landfills supplies feed stock at practically “zero-cost” for its renewable energy ventures.

The landfill grounds that are not suitable for other uses are ideal for the placement of solar panels to harvest sunlight. Methane gas emissions from rubbish decomposition, meanwhile, can be channeled toward the powering of a gas turbine while bio-degradable organic solid waste can be used in a biomass plant.

Cypark is one of the best proxies for renewable energy (RE) exposure in Malaysia. It has commenced the construction of its waste-to-energy (WTE) project, the SMART WTE, in Ladang Tanah Merah, Negri Sembilan, Malaysia while continuing its journey to bring economic transformation to remediated landfills.

It has obtained approval to operate a 20MW + 5MW waste to energy power plant which will be fuelled by waste from its landfill. This concession is for the period of 25 years at a tariff of RM0.455/kwh. The power plant will start producing power in 2017 but in the meantime, we estimate it will receive RM15mil from its landfill annually.

The cost of the project is RM400mil, which explains the high gearing currently. However, a simple discounted cashflow calculation shows that this project’s value is equivalent to that of its current market cap, and investors are obtaining other projects and assets for “free”.

With the current market volatility, we prefer stocks that are defensive and have secured business model like Cypark. The company has proposed a private placement of new shares to raise up to RM70mil with a substantial portion to be taken up by its co-founder and group chief executive officer Datuk Daud Ahmad.

We are comforted that its group CEO is confident to put about RM35mil of his own money into the company. We like companies where management’s motivation and our investment objective are aligned.

Source: TA Investment Management Bhd
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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Re: Cypark Resources

Postby winston » Sun Jun 07, 2015 10:32 am

not vested

CYPARK RESOURCES BHD

Current share price: RM1.81

CYPARK manages waste landfills and solar farms in Negri Sembilan, Perlis, Pahang and Johor. There are various synergies in the company businesses. Treated landfills supplies feed stock at practically “zero-cost” for its renewable energy ventures.

The landfill grounds that are not suitable for other uses are ideal for the placement of solar panels to harvest sunlight. Methane gas emissions from rubbish decomposition, meanwhile, can be channeled toward the powering of a gas turbine while bio-degradable organic solid waste can be used in a biomass plant.

Cypark is one of the best proxies for renewable energy (RE) exposure in Malaysia. It has commenced the construction of its waste-to-energy (WTE) project, the SMART WTE, in Ladang Tanah Merah, Negri Sembilan, Malaysia while continuing its journey to bring economic transformation to remediated landfills.

It has obtained approval to operate a 20MW + 5MW waste to energy power plant which will be fuelled by waste from its landfill. This concession is for the period of 25 years at a tariff of RM0.455/kwh. The power plant will start producing power in 2017 but in the meantime, we estimate it will receive RM15mil from its landfill annually.

The cost of the project is RM400mil, which explains the high gearing currently. However, a simple discounted cashflow calculation shows that this project’s value is equivalent to that of its current market cap, and investors are obtaining other projects and assets for “free”.

With the current market volatility, we prefer stocks that are defensive and have secured business model like Cypark. The company has proposed a private placement of new shares to raise up to RM70mil with a substantial portion to be taken up by its co-founder and group chief executive officer Datuk Daud Ahmad.

We are comforted that its group CEO is confident to put about RM35mil of his own money into the company. We like companies where management’s motivation and our investment objective are aligned.

Source: TA Investment Management Bhd
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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Re: Cypark Resources

Postby winston » Fri Apr 12, 2019 10:00 am

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Trading Buy: CYPARK - 5184
(Last price: RM1.71, Potential upside +12.3%)

Company Profile

Cypark (listed in Oct 2010) has been Malaysia’s pioneering developer and provider in integrated renewable energy, green technology, environmental engineering solutions, and construction engineering

Trading Catalyst

Based on Cypark’s solid R&D capability and track record, we expect it to benefit from the new government promises to increase renewable energy (RE) from 2% to 20% by 2025. We are positive on Cypark given its steady 10% FY19-21 EPS CAGR following the commissioning of the 20MW waste-to-energy (WTE) and large-scale solar one & two (LSS1&2) plants.

Cypark plans to bid for a capacity of 100MW (expect to generate RM50-60m revenue pa) in the LSS3 scheme and it is well positioned to score the job, in view of its cost leadership in RE and high success rate in the past two LSS schemes.

We like Cypark for:
(i) cheap valuation at 9.1x FY20E P/E (12.8% below its 3Y mean)
(ii) improving net margins
(iii) healthy earnings visibility with the inclusion of the two RE projects in the pipeline
(iv) well positioned to secure LSS3 scheme and
(v) defensive play amid external headwinds as >90% of its projects are based in Malaysia (it has ~RM600m order book and RM1bn tender book).
Poised for a triangle breakout to retest RM1.82-1.92 zones.

Technical View
Resistance: RM1.74 / RM1.82 / RM1.92
Support: RM1.67 / RM1.64
Cut loss: RM1.62

Key Financial Stats
Trading at 9.1x FY20E P/E (30.5% below peers)

Source: HLIB
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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