Cypark 3Q net profit rose 23.1%, upbeat on renewable energy segment

by **Cals** Mon 29 Sep 2014, 22:25

Business & Markets 2014

Written by Levina Lim of theedgemalaysia.com

Monday, 29 September 2014 19:00

KUALA LUMPUR (Sept 29): Cypark Resources Bhd posted a 23.1% rise in net profit to RM12.15 million for the third quarter ended July 31, 2014 (3QFY14) from RM9.86 million in the previous corresponding quarter, due to significant tax savings from its renewable energy-related projects.
Revenue for 3QFY14 stood at RM66.58 million, 24.0% higher than RM53.69 million reported in 3QFY13.
It told the local exchange in its results filing this evening that revenue for the renewable energy division had increased by 56% to RM8.6 million in the quarter under review as the export capacity of green electricity had increased to 29.3MW from 19MW in the previous corresponding quarter.
“Due to the cost efficiency achieved through shared resources and economies of scale resulted from [the] increase in capacity, the profit before tax for 3QFY14 further increased significantly to RM1.6 million,” said Cypark.
For the nine months ended July 31, 2014 (9MFY14), net profit rose 24.2% to RM33.53 million from RM26.99 million in the previous corresponding quarter; revenue was 14.1% higher at RM186.96 million from RM163.90 million a year ago.
“The group believes that with the various initiatives being implemented by the Malaysian government in promoting green energy, our plans for our future growth augur well for Cypark,” it said, adding that it expects to secure additional quota for its renewable energy business once the new quota allocation from the Sustainable Energy Development Authority is open for application.
Cypark also noted that its integrated waste management plant that was approved in 2012, is expected to boost earnings and provide it with a stable revenue stream over the next 25 years.
“The concession agreement, nearing finalization, is expected to be signed soon,” it said.
In two other separate filings with Bursa today, the group said its memorandum of understandings (MoUs) with LG Electronics Inc and the Malaysian government remain unchanged.
Cypark closed 1 sen lower today at RM2.65, giving it a market capitalisation of RM523.53 million.