KUALA LUMPUR (March 18): Cypark Resources Bhd reported an 11.84% increase in net profit to RM14.54 million in its first quarter ended Jan 31, 2020 (1QFY20), from RM13 million in the same period last year.

Revenue rose 2.75% to RM90.87 million mainly due to work progress for projects in its environmental engineering division.

“The increase in net profit was mainly due to the full-year effect of adoption of MFRS 15 that was recorded in the immediate preceding quarter,” Cypark said, adding that Large Scale Solar schemes (LSS2) and Net Energy Metering (NEM) would continue to be key contributors to its performance.

Cypark said it is convinced that with the realisation of Malaysian Electricity Supply Industry 2.0 (MESI 2.0), its share of Renewable Eneregy (RE) supply coverage would improve substantially while providing a sustainable option to end-users.

It expects there will be more LSS tenders coming up in the future, premised on the 1,400MWac solar under the stimulus package, and the Government’s 20% Renewable Energy generating capacity target of 6,000MW by 2025.

 Being the only local company that won the recent 100MW LSS3 project, while having a good track record as well as successful completion and commencement of operations, Cypark said it is optimistic of securing at least 20% of future LSS contracts.

Shares of Cypark closed 3 sen or 4.1% lower at 70 sen today, giving the company a market capitalisation of RM327 million.