KLSE (MYR): CYPARK (5184)
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Last Price
0.885
Today's Change
-0.005 (0.56%)
Day's Change
0.88 - 0.905
Trading Volume
6,054,400
2024-11-18
2024-11-14
2024-11-11
2024-11-11
2024-11-11
Oilmanster
155 posts
Posted by Oilmanster > 2024-08-21 11:00 | Report Abuse
### Combined Analysis of Cypark Resources Berhad
**Debt Levels & Financial Health**:
Cypark's debt is significantly high, with RM1.49 billion in liabilities and RM1.33 billion in net debt as of April 2024. The company’s cash reserves are only RM153.2 million, and its receivables cover part of the liabilities, leaving a deficit of RM638.5 million. This poses a significant risk, particularly given the company's declining revenue (down 12%) and negative EBIT of RM19 million.
**Profitability Concerns**:
Cypark has not produced positive earnings, and with negative free cash flow of RM249 million, there is concern about its ability to meet obligations without diluting shareholder value. The absence of meaningful earnings makes it reliant on external financing, increasing vulnerability.
**Conclusion**:
Cypark's financial situation is precarious. Its heavy debt burden, coupled with shrinking revenue and losses, suggests that investors should be cautious. Without operational improvements, the company may face significant challenges in stabilizing its balance sheet.