Haha cypark is realizing it true value... Hope all shareholder hold. RE profits are stable and secure. Cypark has a lot of room to be better with LSS4 and other future green energy incentives.
This aim was made following Malaysia’s proposal for the region to set a target for RE in installed power capacity by 2025 during its tenure as the chairman of the Renewable Energy Sub-Sector Network (RE-SSN) from 2018 until 2020.
“Malaysia’s effort has come to fruition when ASEAN Energy Ministers agreed to set a new target of 35% RE in installed power capacity by 2025, which Malaysia believes will contribute to achieving ASEAN’s target of 23% of RE in Total Primary Energy Supply in 2025.
“This target is set under the ASEAN Plan of Action for Energy Cooperation (APAEC) Phase 2 which will be implemented during the period of 2021 until 2025,” said the Ministry of Energy and Natural Resources in a statement yesterday.
Its minister Datuk Dr Shamsul Anuar Nasarah (picture) had attended the 38th Asean Ministers on Energy Meeting (38th AMEM) that was held virtually on Nov 19 and Nov 20.
During the meeting hosted by Vietnam, the minister had raised several issues regarding the current state of the energy sector in the region which has seen a drastic drop in energy demand due to the Covid-19 pandemic.
Shamsul Anuar suggested for Asean member states to leverage on energy transition in accelerating economic recovery.
He cited Malaysia as an example in offering 1,000 megawatts (MW) of solar quota via competitive bidding in May 2020 to bring potential investment worth RM4 billion and create 12,000 job opportunities.
“Shamsul also quoted the encouraging prices offered by the bidders with 56 out of 93 bidders offering prices below 20 cents/kWh for capacities between 30-50MW and the lowest bid received is 13.99 cents/kWh.
“He said that the prices offered clearly indicate that the pathway to a more sustainable energy future is becoming more competitive,” the ministry’s statement read.
He also thanked other Asean member states for the support given during Malaysia’s tenure as the chairman of Asean Forum on Coal from 2018 to 2020 and registered Malaysia’s interest to continue assuming the chairmanship of RE-SSN for the duration of APAEC Phase 2 from 2021 to 2025, in line with Malaysia’s increased efforts in embracing energy transition.
“In supporting Asean’s vision in advancing multilateral power trading to ensure energy security, Malaysia continues to give its commitment in pursuing this path by pledging to explore the technical and commercial feasibility and viability of cross-border power trade of up to 100MW from Lao PDR to Singapore via Thailand and Malaysia using the existing interconnections for a two-years from 2022 to 2023.
“The project, known as Lao PDR, Thailand, Malaysia, Singapore – Power Integration Project (LTMS-PIP) is a continuation of the past power integration project, transferring power from Lao PDR to Malaysia through Thailand, the LTM- PIP project.”
It added Malaysia and Lao PDR had traded a total of 30.2 Giga Watt Hour of electricity from January 2018 to August 2020 under the project.
During the 38th AMEM, 15 companies from Malaysia has emerged as winners in two main categories in the Asean Energy Awards 2020 namely Asean Energy Efficiency and Conservation Best Practices and Asean Renewable Energy Projects.
@SavingPrivateRyan the main reason would be my friends who some insiders, they say things are not looking good near term, plus seeing EPF and insiders keep selling, so I sold it too.
Pre-lockdown cypark at RM1.40, yes but the economy is not the same anymore, making projects are the last thing big companies want to be doing right now, cypark will run out of projects, and the current investment wont be enough to sustain it.
An engineer from WTE told me it might take 6 months - 1 year to complete.
I guess even cypark is given project, the only way he would fund is via private placement/right issue, means more shares and diluting our EPS...I believe bank borrowing would be the last option as gearing is too high...
Cypark biz requires heavy capital investments for projects with robust contracted incomes for up to 21 years. So high gearing is very normal for such biz. An IPP projects for example will have a high gearing of 80/20 to 75/25. Since the incomes from such projects with long term contracted off takes are robust, the risk of failure is rather minimum. Therefore the issue of financing such projects is not a problem at all. Cypark had recently issued a green sukuk to finance their projects in additions to it's normal bank borrowings. With the current lower interest rates on borrowings, companies with large borrowings for financing viable and profitable projects will in addition benefit greatly from lower cost of financing.
The previous extremely low prices were due to sell down by major shareholders and directors and reissue of ESOS at unreasonably low price of 59.5 sen only. The fundamental biz of Cypark is ok and in the right growing sector of environment and green energy.
If building power plant requires high capex thus high gearing, why the gearing level for MFCB is way lower than cypark? And MFCB has been very good in their cash management. Personally, the level of competency of cypark management is very questionable..
Cypark is inside my stock pick. It is a safe pick. EPS, PE ratio, dividend yield, ROE all passed. The only concern is high debt. This one will depend on how good the management able to tackle it.
Papaya shot. I think you shall come to accept that for RE the capital outlay is huge and debt is raised to run the project . Before the commercial commencent of the project you will see profit but not the cash flow . It is the nature of the accounting . If you are not adopting the latest accounting you will not see the profit and you will see cash outflow as well . Which one you prefer ? The same concept will be applied to latest Yinson accounting practice . It is a long term project . You can see that Yinson got huge profit at the beginning of the project but not cash inflow . Later years you will see cash inflow but less profit . That is my 2 cent
you need to understand that not all companies able to give dividend in this covid19 year. A reduced dividend or the company not going into bankruptcy is already a blessing. So expect 95% of companies listed in Bursa Malaysia not able to pay dividend same as last year. Banks too are affected. This year is a good year to test how strong a company balance sheet is, whether it can come withstand and unforeseen circumstances or bad debts.
Dont write off Cypark so soon. It is a class G7 contractor.
Papaya shot. About dividend . One shall not pay to much attention to it when the company is in the growth trajectory. You seems too pessimistic. I am not too optimistic either I just have a very small position on Cypark. But you shall not be a party spoiler ... people are having party don’t kacau lah ha ha ha .... it is not your money that they are investing let them be lah .... don’t try to be hero and want to save the others in the market because you could be dead wrong about it . If you dun like it and can’t take the risk don’t buy loor ....
Will the market crash if budget 2021 cannot be passed this coming Thursday (26/10/2020)? These are the 4 possible scenarios:
1. Parliament will be dissolved and a snap election will be called 2. A state of Emergency in the whole country will be declared by YDPA 3. Muhyiddin will resign and YDPA will appoint an interim PM 4. YDPA will appoint a new PM who has majority MPs support. A new budget 2021 also will be tabled by the new appointed PM.
Will the market go down? Will it crash? Take profit now or wait?
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....
investory321
288 posts
Posted by investory321 > 2020-11-20 15:51 | Report Abuse
wah what happen?