Cypark share already paid heavy price, tumbling 70% to current level due to delay in achieve COD. Cypark suffer multiple time delay on WTE is key culprit, follow by delay in LSS2 from June to sept + many rumors, causing heavy selling pressure to current low level. The risk already factor in share price.
Now, only need to fulfil it COD as soon as possible by sept for remaining LSS2 solar power plant 2 x 30MW by sept, and 25MW WTE by sept and LSS3 100MW solar plant by Dec. Form now till COD, waiting period is just 2 month and 4 month respectively, once COD achieved as plan, stock price should at least recover back to previous level.
in regard to BOT, after 25 year concession, if company seek for extension and gov willing to extend, power plant are allow to continue operation to generate power, otherwise, the plant will transfer free to gov or dismantled if power plant reach expire lifespan.
Cypark should resume cash dividend payment to shareholder once COD achieved to all it solar plant and WTE. Cypark acting as financer for LSS2 stand to grab additional interest revenue from assets owner on top of capital upfront and O&M fees. The strong cash flow will pare down cypark debt gradually, increase free cash for dividend payment in future.
Waste is free, but its wet, you need to heat it up to dry it first. This cost money. What EBITDA % are you giving them? 100%?
Like the article say, these 3 companies is not owned by politically connected, they are owned by employees. Also if you look at the LSS2 bids, i dont think the connection matters, as Cypark was bidding at super low prices.
Very strange. The big question is why did the main sponsor of the company been selling the shares of the company non stop for the past few months if the company's financial position is ok. There was even heavy selling of the shares last week.
Is there any company issues which are known to the insiders, but not known to minority shareholders? It's wise to be cautious.
Hi superb99, you are sharp. Those dumping at RM 0.38 are exactly those who relentlessly spread good news here lo.. only amateur will be influenced by them.
hahaha, WTE use incinerator to burns completely combusted waste at ultra-high temperatures allowing for energy recovery, whether waste is wet or dry, it will completely burn off
Whether or not LSS2 award to anyone else, make no different as it is awarded by government. These private companies opt to subcon to cypark everything from funding, EPC, M&E. More importantly, the funding is via sukuk, it is non-recourse project debt, strictly guided by RAM rating, back by gov concession agreement. If no mistaken, LSS2 traffic rate is fetching as high >30sen if compared to current LSS4 17sen
Major shareholder suffer heavy loss due to margin call, judging by its ESOS cost is higher than market price. It is their fault for failure to achieved COD earlier. Many minorities also follow paid heavy loss due to intense selloff pressure.
To me, i see opportunity at current price. My previous purchase was below 30sen, locked profit at 45sen. Now, is my second round buyback at 33sen. I don need to fall in love in these stock, trading for profit is more important to me.
Short term, i wish to wait for cypark WTE COD announcement as good news, which should serve as catalyst after long overdue. Nevertheless, TA still come first, FA only second.
Omitted, all the voyage of their life Is bound in shallows and in miseries. On such a full sea are we now afloat, And we must take the current when it serves, Or lose our ventures
The cycle wont repeat back again as the main culprit of delay in commissioning COD for WTE and solar power will be resolved by Sept. Next week already Aug, cypark may surprise market if can announce earlier than expect COD date in Aug, otherwise, just wait another month, Sept, COD announcement is key re-rating for cypark
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
Superb99
6,604 posts
Posted by Superb99 > 2022-07-22 23:04 | Report Abuse
This company used to be a good dividend yield counter but now just kind of penny counter...too bad