Hey there, fellow Malaysian investors! It’s that time of the quarter again when we dive deep into the financial health of companies shaping our market. Today, we’re unboxing the latest unaudited interim financial report for the fourth quarter ended 30 April 2025 from Cypark Resources Berhad, a key player in Malaysia’s renewable energy and waste management sectors.
This report offers a fascinating glimpse into Cypark’s journey, revealing a period of significant transition and strategic realignment. While the company navigated through some expected revenue adjustments, the standout highlight is undoubtedly the impressive turnaround in its profitability for both the quarter and the full financial year, largely driven by strategic reversals of provisions and contributions from new projects. Let’s break down the numbers and see what’s truly powering Cypark’s progress.
Core Financial Highlights: A Closer Look at the Numbers
Cypark’s performance in the fourth quarter and for the full financial year ending 30 April 2025 paints a picture of a company adapting to a new phase of growth. Here’s how the key figures stack up:
Quarterly Performance (Fourth Quarter ended 30 April 2025 vs. 30 April 2024)
Current Quarter (4Q2025)
Revenue: RM19,110,574
Profit Before Tax: RM10,051,015
Profit for the Quarter: RM7,780,736
Basic Loss Per Share: (0.88) sen
Previous Year’s Quarter (4Q2024)
Revenue: RM56,223,946
Loss Before Tax: (RM17,550,669)
Loss for the Quarter: (RM61,698,129)
Basic Loss Per Share: (8.49) sen
The fourth quarter saw a substantial 66.0% decrease in revenue, falling to RM19.1 million from RM56.2 million in the same period last year. This significant decline was primarily due to accounting adjustments related to revenue recognition for the Hospital Rawang project. However, the good news is a remarkable turnaround in profitability, with the Group recording a profit after tax of RM7.8 million, a stark contrast to the RM61.7 million loss in the prior year’s corresponding quarter. This positive shift was largely driven by a one-off reversal of provisions and the growing contribution from the Large Scale Solar 3 (LSS3) project, which generated RM11.2 million in revenue compared to a marginal RM0.2 million previously.
Full Financial Year Performance (FY2025 vs. FY2024)
Current Financial Year (FY2025)
Revenue: RM157,821,771
Profit Before Tax: RM30,166,614
Profit for the Year: RM13,389,997
Basic Loss Per Share: (4.88) sen
Previous Financial Year (FY2024)
Revenue: RM183,911,369
Loss Before Tax: (RM52,383,213)
Loss for the Year: (RM87,870,264)
Basic Loss Per Share: (14.25) sen
For the full financial year, Cypark’s revenue decreased by 14.2% to RM157.8 million from RM183.9 million. This was mainly attributed to the LSS2 project achieving its commercial operation date (COD) and the near completion of the Hospital Rawang project. However, the company successfully cushioned this impact with revenue from the newly operational LSS3 plant. More significantly, Cypark reported a profit after tax of RM13.4 million for the financial year, a remarkable recovery from the RM87.9 million loss recorded in the previous year. This turnaround was bolstered by a reversal of provisions and compensation from an amicable settlement related to the Waste-to-Energy (WTE) plant.
Segmental Performance: The Engines of Growth
Understanding Cypark’s performance requires a look at its individual business units:
- Renewable Energy: This division was a key growth driver, with revenue increasing by 19.9% to RM103.0 million for the financial year, primarily due to the LSS3 project’s COD. Profit before tax saw a significant increase, largely from a one-off provision reversal. The newly operational solar plants are expected to be long-term revenue streams.
- Construction & Engineering: Revenue in this segment saw a sharp decline of 93.9% to RM2.9 million, as the Hospital Rawang project neared completion and LSS2 construction revenue tapered off. However, the division recorded a substantial increase in profit before tax (RM15.3 million), thanks to compensation from the WTE plant’s main contractor settlement.
- Green Tech & Environmental Services: This division experienced a 14.4% revenue decline to RM3.9 million, mainly due to scheduled downtime for biogas engine repairs. Consequently, it reported a loss before tax of RM1.0 million, shifting from a profit in the prior year.
- Waste Management & Waste-To-Energy (WTE): Revenue here increased by 2.9% to RM48.1 million, driven by recurring green energy sales, tipping fees, recycling revenue, and a revised tipping rate. The division also received insurance proceeds for a fire incident, helping mitigate cash flow impact. The loss before tax was reduced by 8.3% to RM56.5 million.
Financial Health: Balance Sheet Snapshot
Cypark’s balance sheet reflects a stable financial position:
| Particulars | As At 30 April 2025 (RM) | As At 30 April 2024 (RM) |
|---|---|---|
| Total Assets | 2,937,498,538 | 2,905,429,528 |
| Total Liabilities | 1,731,452,420 | 1,705,011,503 |
| Total Equity | 1,206,046,118 | 1,200,418,025 |
| Net Assets Per Share (adjusted) | 0.81 | 0.88 |
The Group’s total assets saw a slight increase, indicating continued investment in its operations. Total equity also grew marginally. It’s important to note the change in Net Assets Per Share calculation. The company has prudently revised its methodology to exclude the Perpetual Sukuk amount, providing a more accurate reflection of net assets attributable solely to ordinary shareholders. This adjustment led to a net asset per share of RM0.81 as of 30 April 2025, compared to RM0.88 previously.
Risk and Prospect Analysis: Charting the Future
Cypark is not just resting on its laurels; it’s actively pursuing its “Cypark 2.0” transformation, aiming for a cumulative renewable energy capacity of 800MW by 2027. This ambitious target spans large-scale solar (LSS), waste-to-energy (WTE), biogas, and biomass projects, aligning with national goals for a greener, low-carbon economy.
Opportunities on the Horizon:
- Renewable Energy Expansion: With the LSS3 project now fully operational and LSS2 projects transitioning to operation and maintenance (O&M) phase, Cypark is set to benefit from long-term, recurring revenue. The company is actively participating in tenders like LSS5+ and exploring strategic partnerships for large-scale floating solar projects, such as the proposed 500 MWac project at Kenyir Lake.
- Energy Storage Solutions (BESS): The Malaysian government’s increasing emphasis on Battery Energy Storage Systems (BESS) presents a significant opportunity. Cypark has been shortlisted for MyBeST (BESS for Peninsular Malaysia) and plans to submit its bid in July 2025, a move that could enhance grid reliability and firm renewable capacity.
- Waste-to-Energy Growth: As Malaysia targets 18 WTE plants by 2040, Cypark’s pioneering SMART WTE facility in Ladang Tanah Merah serves as a national benchmark. The recent revised tipping fee structure and ongoing discussions with authorities for capacity expansion at this facility promise stable and enhanced revenue streams.
- EPCC Segment: Cypark is keen to strengthen its Engineering, Procurement, Construction, and Commissioning (EPCC) capabilities, not just for its internal projects but also for third-party opportunities, aiming to capture more value across the solar value chain.
- Green Technology & Environmental Services: With Malaysia’s vast palm oil industry, there’s immense untapped potential in converting Palm Oil Mill Effluent (POME) and Empty Fruit Bunches (EFB) into renewable energy. Cypark’s strategy to develop sustainable biogas and biomass projects, supported by the Feed-in Tariff 2.0 (FiT 2.0) programme, positions it well to leverage this resource.
Potential Challenges:
While prospects are bright, the company acknowledges that the transition period, especially with major projects like Hospital Rawang concluding, can lead to temporary revenue adjustments. The aggressive pursuit of new opportunities is crucial to replenish its order book. Market competition in the renewable energy sector is also intensifying, requiring continuous innovation and efficient project execution.
Overall, Cypark’s strategic roadmap is closely aligned with Malaysia’s National Energy Transition Roadmap (NETR), National Energy Policy (DTN), and the 12th Malaysia Plan, all of which underscore the nation’s commitment to net-zero emissions and sustainable development. This alignment, coupled with Cypark’s proven track record, positions it favorably to capitalize on these macro trends.
Summary and Investment Recommendations
Cypark Resources Berhad’s latest quarterly report showcases a company in a dynamic phase, successfully navigating significant financial adjustments while laying robust foundations for future growth. The notable turnaround from a loss to a profit for both the quarter and the full financial year is a testament to effective financial management, including one-off provision reversals and strategic settlements. The commencement of operations for the LSS3 project marks a pivotal moment, promising a long-term, recurring revenue stream that will underpin the company’s stability.
Looking ahead, Cypark’s strategic focus on expanding its renewable energy portfolio across solar, WTE, biogas, and biomass, coupled with its active participation in key government initiatives like MyBeST and the Kenyir Lake floating solar project, positions it strongly within Malaysia’s burgeoning clean energy landscape. The revised tipping fee structure for WTE and the pursuit of EPCC opportunities further diversify its revenue potential.
Key points to note from the report include:
- The significant impact of one-off accounting adjustments and provision reversals on profitability, indicating a cleaner financial slate.
- The successful commissioning and revenue contribution from the LSS3 project, marking a new era of recurring income.
- The strategic realignment towards expanding renewable energy capacity and diversifying service offerings, aligning with national energy transition goals.
- The proactive engagement in new bidding exercises and partnerships, which are crucial for replenishing the project pipeline.
- The shift in Net Assets Per Share calculation, providing a more transparent view for ordinary shareholders.
While the company faces the challenge of replenishing its order book in the Construction & Engineering segment and managing operational downtimes in other divisions, its clear vision and strategic initiatives appear well-placed to capitalize on Malaysia’s increasing demand for sustainable energy solutions. The emphasis on long-term concession-based projects and recurring revenue streams should provide a more predictable financial outlook going forward.
What are your thoughts on Cypark’s latest performance and its strategic direction? Do you think the company can maintain this positive momentum and achieve its ambitious 800MW RE capacity target by 2027? Share your insights and perspectives in the comments section below!
For more in-depth analyses of Malaysian companies and market trends, be sure to check out our other articles.
