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• The cost of producing electricity from solar power plants has been decreasing
• However due to Covid-19 , which disrupted global supply chains and a increase in demand for solar modules, this result the costs of solar projects increase
• Example, price on solar panel and cable increase (raw-material) & logistic
• So, can the LSS4 winner really makes profits from the low tariff bids?
• The answer: it depends
• When it comes to the cost of a solar farm, in terms of EPCC, it is pretty much the same across all the players. The only way to reduce the cost is from other variable costs, such as land and infrastructure.
• Hence you see ATK Development / MK Land Resources / Taiping Solar / Asiabina Properties etc – as these companies might have land in their book which are low cost
• So, is it a wise move for some company to give up LSS4 bid but only focus on EPCC contract instead?
**Cypark is currently offering its proven expertise in solar project development to the recently announced winners of the LSS4 tenders and target to secure some jobs from the
estimated RM3-4 four billions worth of EPCC work
FYE 2020 REVENUE
183m - Environmental engineering
20m - Landscaping and infrastructure
4m - Maintenance works
66m - Green tech and renewable energy
My estimation for FYE 2021 earning = around 380m to 400m (conservative)
250m - Environmental engineering
**According to AR2020, it is written - the delayed revenue is shifted away from FYE 2020 and consequentially will contribute higher revenue for FYE 2021
** pre-covid earning was around 261m
** their current on hand project is alot more than pre-covid period ( refer to contract assets)
25m - Landscaping and infrastructure
** pre-covid earning was around 34.4m
5m - Maintenance works
104.2m - Green tech and renewable energy
**LSS1 - assume COD @ june 2021 = (10m/12)*4 = 3.3m
**LSS2 - assume COD @ june 2021 = (25m/12)*4 = 8.3m
**WTE - assume COD @ june 2021 = (80m/12)*4 = 26.6m
Total = 38.2m + 66m (existing solar farm) = 104.2m
rm1 very unlikely... in my opinion, I'm waiting the price to hit back around 50cent.... but this can only be achieved when the business revenue is back to pre covid period, thn only company has sufficient cash to once again declare dividend to the shareholder...
also, atleast 40 to 50% of they business income rely on food equipment from hypermarket and Cinema.... looking at cinema business, currently they are very badly impacted...and Malaysia Cinema rely 70% of the movie from Hollywood