Cypark unveils largest floating solar plant

TheStar Fri, Apr 02, 2021 10:20am - 1 month ago


“As a leading renewable energy (RE) provider in Malaysia, we hope that this project will set the precedent to have more floating solar projects developed in Kelantan in the future. This is especially with the Malaysian government’s strongly declared commitment to aensure that green technology and RE are part of the future economic blueprint of Malaysia, ” said Cypark executive chairman Tan Sri Razali Ismail.

PETALING JAYA: Cypark Resources Bhd, through its indirect subsidiary Cypark Estuary Solar Sdn Bhd, along with Cove Suria Sdn Bhd and Kelantan Utilities Mubaarakan Holdings Sdn Bhd, have launched Malaysia’s largest floating solar power plant in Danau Tok Uban, Kelantan.

In a statement, Cypark said the company and Cove Suria will install 30MW each for the large-scale floating solar plant.

Upon completion, it will be the largest floating solar plant in South-East Asia and the second largest in Asia after China.

The floating solar plant will cover a water surface area of 164 acres, consisting of about 247,830 solar panels, which will generate about 140,000 MWh of power per year.

This is estimated to power up to 46,480 households and save about 96,600 tonnes of carbon dioxide annually.

“The floating solar plant has a great opportunity to generate power with low cost.

“As a leading renewable energy (RE) provider in Malaysia, we hope that this project will set the precedent to have more floating solar projects developed in Kelantan in the future.

“This is especially with the Malaysian government’s strongly declared commitment to aensure that green technology and RE are part of the future economic blueprint of Malaysia, ” said Cypark executive chairman Tan Sri Razali Ismail.

The environmental solution and RE group currently has unbilled orderbook of RM175mil from its second large scale solar (LSS2) projects.

Cypark’s 20 megawatt (MW) waste-to-energy (WTE) and 4MW biogas plant in Ladang Tanah Merah, Negri Sembilan, is also expected to be ready for operation from July 2021. This is expected to boost its RE segment growth.

For the first quarter ended Jan 31,2021, Cypark saw its net profit increase 3% to RM14.98mil from RM14.55mil in the corresponding period a year ago, driven by interest cost savings and lower staff expenses. During the quarter in review, the group’s revenue fell 15.84% to RM76.48mil from RM90.88mil in the previous corresponding period.

Public Investment Bank noted that while Cypark’s first-quarter 2021 earnings were below expectations, it was only a temporary setback.

The brokerage maintained its view that FY21 would be a recovery year for Cypark. This would be driven by increase in work activities from its construction-related projects, supported by unbilled orderbook of RM175mil from its LSS2 projects.

Public Investment Bank maintained its “outperform” call on Cypark, with unchanged target price of RM1.84, on sum-of-parts-based valuations.

It noted that Cypark was currently trading at only 6 times FY21 price-earnings (PE) ratio, compared to an average of more than 20 times for its peers.

Public Investment Bank said Cypark was looking into collaborations with the state-linked companies of Kedah, Negri Sembilan, Melaka and Johor, and eyeing a total capacity of up to 150MW in potential net energy metering projects (NEM) in the next two years.






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