PETALING JAYA (May 6): Cypark Resources Bhd expects to formalise a proposed landfill concession by the middle of this year, a move which will generate additional RM100 million in annual revenue for the firm.

Cypark (fundamental: 1.3; valuation: 1.8) group chief executive officer Datuk Daud Ahmad said the firm expected to see the additional RM100 million revenue by financial year ending Oct 31, 2017 if the company gets the 25-year concession at Ladang Tanah Merah, Negeri Sembilan.

"I think it is sufficient to say that between the government and us (Cypark), we have resolved all the process, and hope to sign the concession by middle of this year," Daud told reporters after Cypark's extraordinary general meeting here today.

Cypark had in February 2012 received the approval-in-principle from the Malaysian government for the project.

The project involves the development of a sanitary landfill along with required infrastructure, besides a waste segregation facility and renewable energy plant.

Today, Daud said Cypark was particularly in favour of concessions as they provided recurring income to the group.

"We tend to focus more on this kind of BOT (build - operate - transfer) concession contracts, rather than short-term contracts," he said. He declined to elaborate.

As 12.30pm market break, Cypark shares settled at RM1.88, down one sen or 0.5%, for a market capitalisation of RM378.5 million.

The stock had fallen 13% this year, underperforming the FBM KLCI's 3% rise.

(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.)