Maybank IB Research lowered the company's FY26 and FY27 core net profit by 83% and 4%, respectively.
PETALING JAYA: After having gone through a bumpy stretch over the last two years, analysts believe that a turnaround for renewable energy company Cypark Resources Bhd
is in sight.
However, any change will only happen in the company’s financial year 2026 (FY26).
Maybank Investment Bank Research (Maybank IB Research) raised its target price for Cypark to 94 sen from 88 sen a share as it raised the engineering, procurement, construction, and commissioning (EPCC) price-earnings ratio multiple to 13 times from 10 times on better job visibility.
But the research house lowered its FY26 and FY27 core net profit by 83% and 4%, respectively, to reflect actual FY25 results and reduce the FY26 EPCC revenue assumption to RM180mil from RM300mil on possible delays in project wins.
The research house’s FY27 EPCC assumption remains unchanged at RM300mil.
BIMB Research retained its target price at 97 sen a share and said it anticipates Cypark’s earnings to recover in FY26, driven by the stable operation of its waste-to-energy (WTE) plant and ongoing expansion plans.
With no more delayed projects, the company is positioned to secure additional EPCC contracts, the research house said.
Cypark owns three large solar assets with capacity of 319MW, providing long-term recurring income via sales of electricity.
In the near term, its order book will be supported by the recently awarded 500MW hybrid solar and battery storage project in partnership with Terengganu Inc.
Both Maybank IB Research and BIMB Research downgraded their calls on Cypark to “hold” from “buy.”
Maybank IB Research said Cypark’s medium-term prospects remain encouraging, supported by the renewable energy WTE segments.
The key near-term catalysts include the refinancing of RM1bil solar and WTE-related debt this year, which could reduce borrowing costs by around 20% and full-year earnings contributions from its solar assets.
