$CYPARK / 5184 (CYPARK RESOURCES BERHAD)
Research by Public
Neutral – TP RM0.80

“Third Consecutive Loss"

Cypark Resources (Cypark) reported a third consecutive quarterly core net Loss After Tax and Minority Interest (LATAMI) of RM68.4m in 4QFY24, widening from a core net LATAMI of RM30.7m in 3QFY24. This is mainly due to derecognition of deferred tax assets of RM46m, following the over provision during the kitchen-sinking exercise in FY23. The result was also impacted by the unexpected fire incident, which caused unscheduled downtime in its waste-to-energy (WTE) plant, with the segment recording a net loss before tax of RM13m. Overall, FY24 net core LATAMI of RM106.2m is below our and consensus full-year net LATAMI estimates of RM43.1m and RM34.7m respectively. On a positive note, the Large Solar Scale 3 (LSS3) Merchang project has finally achieved commercial operation date (COD) on 9th June 2024. This will allow Cypark to re-channel its resources to focus on achieving COD for its LSS2 Danau Tok Uban (DTU) project in 3QCY24. Nevertheless, we cut our forecast for FY25F/26F by 48/18% to reflect lower efficiency in the WTE plant due to staggered resumption in operations after the fire incident, and slight delays in the DTU commercialization. We maintain our Neutral call with a slightly-reduced sum-of-parts (SOP) TP of RM0.80 (from RM0.86).

Analyst:
Khairul Fahmi, CFA
khairul.fahmi@publicinvestbank.com.my