Interesting read in today's blog https://klse.i3investor.com/web/blog/detail/CyparkSharing/2022-06-28-story-h1625238979-The_Ticking_Time_Bomb_Of_Cypark_Resources_Berhad_KLSE_5184

Also borrowing cost is high at 5.5-6.5%

I agree RE theme is hot.....and because its hot, IRR is getting lower and lower due to competitive bidding. Everyone focus too much on portfolio size in terms of MW capacity and not on commercial returns.
Cypark will probably make some money from LSS2 cos tariff is still about 38 sen. But hard to make money for LSS3 when tariff drop to about 23 sen and worse for LSS4 about 18-19 sen (likely deferred due to high panel and construction cost). I dont think historical profitiability can sustain.

@klse2022 If my estimate is correct, WTE will report accounting loss. Cash flow will still be positive if add back amortisation, so maybe no need asset impairment. Interest technically will come down as debts being repaid. So maybe not whole concession period will lose money.

@yong1985cm: Tipping fee already in RM80m revenue guidance (management used to guide RM70m; you can google past press coverage and AR). No idea why some FMs bullish or if there will be another ala serba/sapura bail out in horizon if project fails. Thats speculative and not fundamental.

Biggest redflag is the super inflated asset cost. Not only WTE, solar also. Can refer 2021 AR. If you add FA (include LSS3 in WIP) and Contract Asset (mainly LSS2), total is roughly RM1.4 bn (already near RM4.7m/MWp), and still growing until completion maybe in 2022.





LSS

This yearly interest of RM20+ million will continue after completion. During the construction period, they are capitalised, which partly explains IA value going up every year. What happens to this ANNUAL interest once they commercialise the project? Won't it be expensed out?

WTE book value snowballed to RM900+ million at 31 Mar...for 20MW???!!!. 2021 AR guided annual revenue from WTE RM80 mil.....how to make money? Left 21 years....annual amortisation already RM43 mil.....every year interest capitalised (from AR) RM23 million (with rising interest rate)....just these 2 cost already RM66 million.....what about operating cost like fuel to burn and electricity ?

1Q results briefing on 26 May 330 pm. Interested please register:
https://us06web.zoom.us/webinar/register/WN_apMobvx-QWeSyJ70DXyTWA

4Q results Friday after market close. Briefing on 28 Feb 2 pm. Those interested can register using link provided in MFCB website.

3Q results 18 Nov, after market close. Post results briefing 3pm 19 Nov. Registration link: https://zoom.us/webinar/register/WN_ROTfQvWqQRiMo-UucOOVFQ

Bloomberg article:
https://www.bloomberg.com/news/articles/2021-10-01/tpg-johor-corp-said-to-weigh-taking-malaysia-s-kpj-private

Give up on Jaks. Cleared all my position today.

2Q will pick up speed again.

1Q seasonally much weaker than 4Q. Hence, 1Q earnings down sequentially from 4Q is to be expected. Even if 25 mil PATAMI would represent >600% growth y-o-y. What is the big issue?

QR on 19 Nov

All warrant and ESOS already exercised.... share cap net of treasury is 473 million shares

yes

QR this evening after market close

19 Aug