Cypark sees 45% increase in 4Q earnings, boosted by landfill ops

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KUALA LUMPUR (Dec 30): Cypark Resources Bhd recorded a net profit of RM11.9 million or 4.75 sen per share in its fourth quarter ended Oct 31, 2016 (4QFY16), up 45% from RM8.19 million or 3.9 sen per share a year ago, mainly attributed by income generated from its landfill operation as well as its Ladang Tanah Merah project.

According to its Bursa Malaysia filing today, 4QFY16 revenue rose 21.3% to RM67.6 million as compared to RM55.74 million a year ago, mainly due to an increase in work activities of Phase 2 of the environmental engineering project at Ladang Tanah Merah and also some newly secured projects during the quarter.

For the full-year period (FY16), Cypark's profit climbed 16.5% to RM50.68 million from RM43.52 million due to additional tax provision required for non-tax-exempted projects in current financial year.

Revenue increased to RM282.93 million compared to RM251.85 million in FY15.

The company said the public's demand for a cleaner and greener solution for waste management and disposal facilities have generated opportunities for Cypark to implement its innovative waste-to-energy technology, the SMART-WTE.

Cypark is currently constructing the SMART-WTE plant in Ladang Tanah Merah, Negeri Sembilan, Malaysia. This plant will exclusively cater for most of the waste generated in the state of Negeri Sembilan for the next 25 years. Once completed in 2017, the plant will be the nation's first and largest state-of-the-art green waste-to-energy plant.

Based on its input capacity of 1,000 tonne per day and design capacity of 20MWh, the plant is expected to generate revenue of more than RM80 million annually, said the company.

Cypark Resources shares closed down three sen or 1.42% at RM2.08, bringing it a market capitalisation of RM526.11 million.