Cypark Resources Posts Wider Loss, Cuts Earnings Forecasts Amid Slower EPCC Conversion

Cypark Resources Bhd (CYP MK) reported a core net loss of MYR26.8 million for 1QFY26, compared to MYR25.4 million a year earlier, missing both market and consensus expectations. The weaker performance was attributed to slower revenue recognition from the near-completion of Hospital Rawang and a temporary outage at its waste-to-energy (WTE) plant.

Group revenue fell 16.4% year-on-year to MYR41.7 million, reflecting tapering construction activities. However, renewable energy (RE) remained a bright spot, with segment revenue up 20% year-on-year, supported by contributions from its LSS3 project and stronger palm oil mill effluent (POME) biogas sales. Efficiency initiatives lifted EBITDA margins to 52%, compared to 38% in 1QFY25, sustaining positive operating cash flow of MYR21.9 million.

Cypark Resources

Despite the weaker results, medium-term growth prospects remain intact, underpinned by a MYR3.5 billion tenderbook, including MYR2.2 billion targeted for conversion, and its 51% stake in the newly secured 100MW LSS PETRA 5+ project with Sunview. The proposed Phase 2 WTE expansion, pending approval by end-FY25, could provide upside to earnings.

The company, however, has revised its FY26 earnings forecast, projecting a deeper core net loss of MYR69.5 million versus a previously expected profit of MYR4.7 million.

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