Cypark Resources positive at mid-morning, Maybank IB recommends 'buy'

KUALA LUMPUR, July 1 (Bernama) -- Shares of Cypark Resources Bhd, which has been among the most actively traded stock for the past two days on Bursa Malaysia, was positive at mid-morning today.

This comes in light of news that the renewable energy (RE) firm has denied all claims in an article titled “The Mystery of Cypark Resources Bhd” which was published on various blogs and websites recently.

The company denied all allegations made in the article in a filing with Bursa Malaysia on June 29, 2022.

“We deem the irresponsible and anonymous article which contains wrongful, inaccurate and or false accusation or information was purposely written with malicious intent to mislead the investors and stakeholders,” Cypark Resources said.

The company said fundamentals and all the contractual rights under all the various concession agreements remain solid and valid.

In another development, Maybank Investment Bank (IB) said despite Cypark’s second quarter (Q2) financial year 2022 (FY22) net profit was below expectation due to cost escalation resulting from the pandemic, it expects the acceleration of road upgrading works along Jalan Dutamas 2 (RM74.3 million contract) would partly support earnings growth in the second half (2H) FY22. 

Maybank IB also expects a more robust financial outlook ahead, upon completion of large-scale solar 2 (LSS2), LSS3 and waste-to-energy (WTE) projects in FY22. 

The research firm is keeping its sum-of-part based target price (TP) of RM1.01 and a “buy” recommendation for Cypark Resources. 

As at 11.47 am, the company’s share price rose 1.5 sen to 36 sen with 27.19 million shares transacted.

-- BERNAMA