lloydlimCypark have stronger earnings growth prospects than Petronas Gas, Malakoff and Gas Malaysia. Companies in the former camp, in our opinion, operate in an environment where there is an abundance of horizontal expansion opportunities. We believe cheap utility stocks could react more strongly to positive news than to negative news as positive news gives the market a reason to buy the stocks, while the impact of negative news is buffered by their already-cheap valuations.
necroWTE KEPONG result will coming next month(September) or October...the run up is due to this... Target RM3.5X
iman6767Something is brewing in the company that may involve epf...
LuckyGinvolve epf ...... not cypark ordinary business ..... take over ? hahaha buy 30% of cypark from open market ? hehehehe
LuckyGshare price 52weeks high and volume growing .... sure got something behind one .
cherry88"We believe that the market has failed to fully appreciate the potential of Cypark’s WTE project due to the lack of understanding of its earnings prospects. Management has shared scant details about the LTM project to safeguard its competitive edge in the tender exercises of future WTE projects.
The latest WTE project tender is located in Kepong. The completion of this tender exercise could cause Cypark’s share price to re-rate, as the press has reported that many corporates are interested in the project. Newsflow about the involvement of these companies in the project would signal that WTE projects are lucrative. This could spark investor interest in Cypark as it is the only active WTE concession owner in Malaysia"
Source : CIMB Investment Bank
This could be the reason behind the price increase. CIMB target at RM2.30 !!
LuckyGwah ppl selling like no tomorrow . nothing to do with me ...... i going to hold for long term . strongly demand warrant or bonus issues !!!
LuckyGwao wao wao something we dont know the company didnt annouce ????
Rica7894--------Look beyond 2018, an exciting year.--------
-The decline in 3Q16 and 4Q16 earnings should not be a concern as it could simply be a result of seasonality.
-In 3Q16, the Board of Directors is of the opinion that the business and performance of the Group is expected to be robust and strong for the current and coming years. -------------------------------------------------------------------------------------------------------
Potential of robust earnings growth in FY18, driven by the full scope of RE revenue from its Ladang Tanah Merah (LTM) project.
-To recap, SMART WTE project in Ladang Tanah Merah, Negri Sembilan ( a 25-year concessionaire period project), has completed phase 1 of its sanitary landfill development, and currently contributes income in the form of tipping fees of the landfill.
-Currently, the renewable energy sector generates RM40 million revenue for the company. (3Q16, Rm35.6million).
-SMART WTE project will have a total generation of RM100 million a year upon completion.
-By the end of 2017, Cypark expects to generate annual revenue of up to RM140 million to RM 150 million from its renewable energy sector (RE), supplemented by its SMART waste-to-energy (WTE) project and other contracts.
-Cypark has set a target for the sector (RE) to contribute more than 60% to its revenue by the end of 2017.
-For its dividend policy, possibly seeing an increased payout of 30% to 40%, from the current 25% due to the stronger cash flow from projects.
-In the longer term, Cypark’s earnings will benefit from its participation in more WTE projects in Malaysia. Cypark has an advantage in future waste-to-energy (WTE ) project bids as it is the only WTE concession owner in Malaysia. It is building a WTE plant in Negeri Sembilan, which is expected to be completed in late 2017.
Cypark Resouorces Berhad - Waste-To-Energy (WTE) Project On Track Author: PublicInvest | Publish date: Thu, 27 Oct 2016, 09:35 AM
We visited Cypark?s integrated waste management facility at Ladang Tanah Merah (LTM), Negeri Sembilan, along with some analysts and fund managers, to gain better insight into the waste management operation and updates on the progress of the waste-to-energy (WTE) project. There is a potential for robust earnings growth in FY18, driven by the full scope of renewable energy (RE) revenue from this project. We maintained our Outperform call on Cypark with an unchanged SOTP-target price of RM2.56.
InvesteyeGood to look into this counter is present rally is still continue after consolidate.. especially next year should perform even better..
necroJUDGING by the number of power plant and renewable energy (RE) projects that have been awarded in the last six months, it could be only a matter of time before the country is saddled with too much power-generation capacity.
Making matters worse is the slew of independent power producer (IPP) licences that have been given out on a non-competitive or direct-negotiation basis, prompting many unsolicited bids.
According to an industry official, power demand growth has been flat, while new power plants are being approved.
“Based on previous trends, electricity demand grows after the Chinese New Year period, but it was not the case this time. The fear is that there is too much supply coming onstream without being accompanied by demand,” the official says.
According to Tenaga Nasional Bhd (TNB), electricity demand growth was at 4% in the financial period ended Aug 31, 2016. Last April, electricity usage in Peninsular Malaysia hit an all-time high of 17,788MW due to higher consumer demand arising from the heatwave.
It did not provide a projection for the current year, but said that demand is expected to increase in tandem with the country’s economic growth of between 4% and 5%.
More than 8,000MW power capacity is in the process of planting up. TNB completed and commissioned the 1,000MW coal-fired power plant (Manjung 4) in April 2015 and the 1,071MW gas-fired project in Prai in February 2016. There is some 6,000MW of power capacity underway.
On top of that, there are also new large solar farms to be commissioned in the near term.
To be fair, Malaysia’s power sector had not seen any increase in installed capacity for about six years until recently. Additionally, some power plants no longer export power to the grid, following the expiry of the first-generation power purchase agreements (PPAs).
Single buyer rules
The single buyer department was established in September 2012 and authorised by the Energy Commission to be responsible for the management of electricity procurement and related services.
The department, a ring-fenced arm operating independently within TNB that determines how much each power plant will generate on a day-to-day basis, is headed by Charanjit Singh Gill.
Prior to the establishment of the department, the energy procurement functions were embedded in TNB.
One of the department’s main responsibilities is to procure electricity from IPPs and TNB to meet demand at the least cost.
To the delight of industry observers, some plans are already in place to strengthen the energy sector.
The new enhanced dispatch arrangement (Neda) was introduced in October 2015 and is managed by the department. It is designed to enhance cost efficiency of the single buyer market through short daily competition. Neda opens the door for IPPs to supply power to the grid without a PPA.
Already, there have been some positive developments in Malaysia’s power sector.
A notable change is the introduction of an international competitive bidding process for the construction of a new gas-fired power plant of 1,000MW to 1,400MW capacity in Prai, as well as the calling for a competitive restricted bidding exercise among the first-generation IPPs and TNB’s ageing plants.
This, however, did not last long, as the Government has been awarding power plants without calling for a tender in recent times. Industry observers stress that competitive bidding is necessary to ensure transparency and efficiency in procuring future power-generation capacity.
So far, all the utility-scale solar power plants awarded have been done via direct negotiations, a precedent set by the award of the past few power plants.
In contrast, the Sustainable Energy Development Authority (Seda) conducts e-balloting for solar or other RE sources for households and small-scale installations for the feed-in-tariff quotas.
Seda has been cut off from the process of awarding these contracts, although the statutory body is empowered to promote the deployment of sustainable energy measures as part of the solutions towards achieving energy security.
Last November, TNB signed three PPAs with a consortium of three companies – ItraMAS Technology Sdn Bhd, Maltech Pro and Cam-Lite Sdn Bhd – for the supply of 150MW of solar power.
The solar panels that will be built by this consortium will be located in Jasin, Malacca; Gurun, Kedah; and Merchang, Terengganu.
The PPAs were signed between TNB and Quantum Solar Park (Malacca) Sdn Bhd, Quantum Solar Park (Kedah) Sdn Bhd and Quantum Solar Park (Terengganu) Sdn Bhd.
The Energy, Green Technology and Water Ministry had at the beginning of last year said it wanted to develop more large solar power plants this year.
This award comes after a request for proposal for a 250MW power plant was issued earlier this year, and it is expected that the capacity of the plants will come on stream from 2018.
In April 2014, 1Malaysia Development Bhd (1MDB) announced that it had signed a 25-year PPA with TNB to buy power