Cypark Resources sees 24% increase in Q3 earnings

PETALING JAYA: Cypark Resources Bhd's net profit for the third quarter ended July 31 increased by 24.1% to RM16.5 million from RM13.3 million in the same quarter last year, due to better performance by its environmental engineering, green tech & renewable energy segments.
Revenue on the other hand rose 7% to RM75.1 million in the quarter under review against the RM70.2 million recorded in the same quarter last year.
'We expect all our current business segments will continue to generate sustainable income in 2017 and the coming years. In our second phase of business transformation, we will continue to focus our resources and explore opportunities in the respective segments both locally and regionally either by competitive bidding or proposals," the group said in a filing with the stock exchange.
"With our impressive track record coupled with our continuous innovation and R&D, we will be able to maximise our resources to create a sustainable business. In fact, our current successes have made Cypark as the preferred partner for many world renowned green technology providers such as Hitachi (Japan), TESCO (Japan) and Ciel Terre (France)," it added.
As plans forward, the group will be increasing its investment in in renewable energy projects with expectation of having a bigger revenue contribution from the sales of green power as the segment is expected to contribute more than RM300 million in recurring revenue.
It will also be focussing on research & development resources in developing business opportunities from energy storage, exportable biomass solid fuels and energy efficiency projects.
Meanwhile, the environmental engineering & solutions segment is expected to continue to steer growth forward.
Cypark's net profit for the first nine months of the financial year stood at RM39.45 million, 1.7% higher than the RM38.78 million recorded in the same period a year ago. Revenue on the other hand rose by 10.3% to RM237.51 million from RM215.33 million
Its shares gained 2% to close at RM2.55 on Friday with some 248,800 shares changing hands.