PETALING JAYA: Cypark Resources Bhd
’s results for the first quarter of financial year 2027 (1Q27) provide meaningful evidence of the group’s earnings turnaround – well supported by its sizeable engineering, procurement, construction and commissioning (EPCC) order book.
BIMB Research in a note to clients, viewed the group’s 1Q27 performance positively and expects the EPCC segment to remain the key growth engine as construction progress accelerates.
Cypark returned to profitability in 1Q27, recording a net profit after tax and minority interests of RM5mil versus a net loss of RM18.6mil in 1Q26, and RM21.9mil in 4Q26.
“Overall, the 1Q27 results came in ahead of estimates primarily due to earlier-than-expected ramp-up in EPCC activities.” BIMB Research added.
Regarding its financial position, Cypark’s outstanding debt, including perpetual sukuk, remained elevated at around RM2bil, while equity attributable to owners was broadly stable at RM570mil.
Nevertheless, net gearing improved to 324% from 343% in 4Q26, aided by a strong cash position following improved operating cash flow.
“We revised our earnings forecast by bringing forward our previous FY28 estimates into FY27, reflecting the earlier-than-expected ramp-up in project execution, particularly for the Kenyir Hydro Hybrid Floating Solar project,” it said.
“Consequently, we now forecast net profit of RM35mil in FY27 and RM63mil in FY28.”
BIMB Research maintained a “hold” on the stock with an unchanged target price of 73 sen.
