Cypark posts net profit RM14.55m in Q1

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KUALA LUMPUR (June 30): Cypark Resources Bhd posted a net profit of RM14.55 million or 7.31 sen per share in the first quarter ended April 30, 2015 (2QFY15), up 6.6% compared to 13.65 million or 7.6 sen per share a year ago.

The group attributed the better earnings to the additional income generated from the landscaping and infrastructure and maintenance divisions.

Revenue rose 5.85% to RM72.95 million, compared to RM68.92 million a year earlier, according to its filing to Bursa Malaysia today.

No dividend was declared under the current quarter under review.

Cypark (fundamental: 1.3; valuation: 2.4) said revenue for the landscaping and infrastructure division increased significantly by 64.7% to RM19.5 million in 2QFY15 against RM11.9 million last year.

"Boosted by the increase in revenue, the profit before tax (PBT) of this division also grew by 94.2% to RM2.7 million in 2QFY15 from RM1.4 million in 2QFY14," it said, adding the increase was due to the increase level of works performed for the infrastructure projects and building projects secured in this division.

Its maintenance division registered RM1.5 million in revenue while renewable energy division's revenue increased by 4.4% to RM9.6 million from RM9.2 million a year earlier.

Profit after tax for the segment increased by 15.5% to RM2.9 million versus RM2.5 million previously due to the increase of export capacity of green electricity to 30.3MW from 29.3MW and cost savings through shared services on operation and maintenance.

However, its environmental engineering's revenue fell by 11.2% to RM42.3 million from RM47.6 million, resulting in profit before tax to decline by RM1 million or 10.1% to RM9.2 million from RM10.2 million last year.

Going forward, Cypark plans to continue to optimise its business models and commercial processes.

"Based on the industry outlook and our plans as indicated above and barring any unforeseen circumstances, the board of directors is of the opinion that the business and performance of the group is expected to be robust and strong for coming year," it added.

Over the past one year, Cypark share price has slid nearly 41% to close at its one year low of RM1.69 today. It was traded at a high of RM2.86 on July 7 last year.

With the current price, it has a market capitalisation of RM336.22 million.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)