KUALA LUMPUR (Sept 29): Cypark Resources Bhd made a net profit of RM305,000 for the first quarter ended July 31, 2023 (1QFY2024) against revenue of RM36.52 million.

In a filing with Bursa, the group said that revenue came mostly from its renewable energy (RE) and waste management and waste-to-energy (WTE) divisions, where income was recurring in nature.

Its RE division delivered the bulk of revenue for the group, amounting to RM21.7 million for 1QFY2024 while the waste management and WTE division contributed RM10 million in revenue for the quarter. The remaining revenue came from its construction and engineering division as well as its green tech and environmental services segment.

While Cypark recorded a net profit of RM305,000, which it attributed to lower tax expense, it saw a loss before tax (LBT) of RM1.3 million — translating into a loss per share of 0.46 sen.

The LBT arose from the lower performance in its waste management and WTE division, according to the group. Cypark also said that revenue generated by its WTE plant located in Ladang Tanah Merah was lower than expected during its early stage operation.

No comparative financial information is available as the group had changed it financial year-end to April 30, 2023 from Oct 31, 2022, which was announced in January.

Going forward, Cypark says it is anticipating various opportunities and challenges with the expansion of the RE industry, including the potential competition from industry players.

Cypark added that it is also selectively venturing into new projects in the RE space. Cypark says that it proactively identifying expansion and diversification opportunities in the industry in order to achieve its capacity goal target of 800MW by 2027.

“Our priority lies on the RE businesses including large scale solar power, biogas, biomass and WTE projects which will enable us to tap into clean and sustainable energy sources while we continue to play our significant role in decreasing GHG emissions,” it said.

“We are also expanding our business opportunities by scouting for projects with state-owned entities and companies nationwide, representing a strong indication of our commitment to capitalise on emerging markets in all states.”

Besides RE, Cypark is also prioritising waste management, particularly WTE, given the government’s emphasis on green economy, recycling of waste and implementation of circular economy as part of the National Energy Transition Roadmap (NETR).

It also noted that its Municipal Solid Waste WTE plant in Ladang Tanah Merah, at 20-megawatt capacity, could bring in more WTE projects in the future, both locally and regionally.

Cypark shares closed two sen or 2.03% lower at 96.5 sen, valuing the group at RM770 million.