Price was depressed today probably due to listing of 50.6 m heavily discounted new shares issued from Private Placement at the issue price of only 92 sen
Returns on investments on new solar project are still attractive for those that have strategic edge or advantage like availability lands, cheap financing and good track records. The early developers like Cyparks will however enjoy very lucrative returns on each solar project over the 21 years period via REPPA with TNB
Star168,maybe you are correct cannot move to the moon,maybe to Holland only,but since remaining low for quite a long time,and some projects are nearly completion,i think it will moves higher soon.My thinking only.
No power above rm1......why so? Looking at the 1.50 several months ago ..........renewable energy is still strong especially for those 1st generation PPAs when the feed-in tariff was so high.
It may be value investment.Wait 1-3 years.buy 90-98 cents.Now 98 cents.Among the earlyiest who win RE project 3-4 .Margin mid 10 to 20 percent.The newer one who bid profit margin higher end single digit.But if got 30-40 percent profit just sold and rebuy at cheaper price.
Cashflow for what..each project got their own financial sources and will pay by each project..WTE has it own schedule, LSS2 60mwac has it own arrangement..
@mni. You are right about Cypark gearing/debts and its cash flows at the present time. Cypark is putting a lot of capital to mainly green and environmental related projects which need big capital and take some time to develop. However when these projects are completed and operated, these projects will bring in ample and robust cash flows and lucrative profits as these projects are backed by long term purchase agreements for example with TNB in the case for power projects for normally a duration of 21 years. On top Cypark in still in the growth stage with more projects expected to come and this continue to need more capital funding. However later on, Cypark will be reaping huge amount of robust cash flows and good profits. This counter is not for some one to expect quick speculative profit but for serious investors who understand Cypark business and its business models. Not surprising if you look at the shareholding structure to find that Cypark is virtually being owned by the insiders (Management and Directors) and institutions.
construction based business in Malaysia, in terms of accounting, is really hard to judge... Well, not to say they're doing fake accounting, but the tendency of doing fake accounting is relatively high.. They can boast all sort of projects in hand (how many billions, etc..), but in reality, how many $ is real profit? Well, this is open question and anybody with construction/accounting background, please feel free to comment.....
Back to Cypark, ya, prospect is good, solar business (oh well, trending industry ma, good prospect, so-called). Cash Flow "might" become positive once IPP business is back, etc. Again, let's hope for the best..
Perhaps this kind of industry is new in Malaysia. Anyway, if you'll manage to find a similar company like Cypark (outside Malaysia) that can do very well in solar power generation, please feel free to share.
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Karlos
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Posted by Karlos > 2021-09-22 21:10 | Report Abuse
Price was depressed today probably due to listing of 50.6 m heavily discounted new shares issued from Private Placement at the issue price of only 92 sen