Sun shines again on Cypark

FOR much of the last decade, Cypark Resources Bhd has played a pivotal role in Malaysia’s renewable energy ambitions.

Known for pioneering landmark solar and waste-to-energy (WTE) projects, the company has helped shape the nation’s clean energy narrative.

But in recent years, that narrative had hit turbulence.

The company stumbled through delays, losses, and financial constraints, with investors and industry observers questioning whether it could rebound.

Now, Cypark is writing a new chapter – backed by a renewed vision, strategic recalibration, and strong institutional support.

In financial year 2024 (FY24), Cypark posted a net loss of RM84.6mil dragged by higher-than-expected project costs in its renewable and WTE segments. Since then, it has shown signs of recovery.

For the third quarter of financial year ended Jan 31, 2025 (3Q25), it managed to return to the black with a net profit of RM8.76mil from a net loss of RM28mil a year earlier.

The company recorded a RM30.09mil in provision reversal and compensation from a settlement with its Negri Sembilan WTE plant’s main contractor.

Revenue for the quarter, meanwhile, rose 10.7% year-on-year to RM39.7mil, boosted by its hybrid plant in Terengganu.

For its first nine months, its net loss narrowed to RM7.04mil from RM26.9 mil a year earlier on the back of a 9% increase in revenue to RM138.7mil.

Cypark chief investment officer Belqaizi Taufik says that while core losses in FY24 and year-to-date FY25 reflected the financial strain from elevated costs, it has taken steps toward an earnings turnaround in FY26.

“The narrowing of net losses already signals early progress from new revenue contributions by the LSS3 (large scale solar) project following its commencement in June 2024.

“The group is now implementing strategic initiatives to reverse these losses and achieve positive cash flow,” he tells StarBiz 7.

He adds that it will be able to return to the black, banking on revenue growth from full-year contributions from the LSS3 projects and the WTE segment, following the resumption of plant operations in October 2024, higher tipping fee collections and new engineering, procurement, and construction (EPC) contracts.

The company is also seeing healthier cash positions. Its cash and cash equivalents rose to RM178.28mil as at Jan 31, 2025 from RM153.48mil in April 30, 2024. However, its total borrowings are still high at RM1.6bil as at Jan 31, 2025 versus total equity of RM1.2bil.

A bulk of the borrowings – RM1.26bil – are long-term borrowings.

In the near term, Belqaizi believes the successful restructuring of its financing obligations will help reduce finance expenses and principal repayment.

Cypark has experienced delays in key projects, including its floating solar plant at Tasik Danau Tok Uban (DTU) in Kelantan and the SMART WTE plant in Negri Sembilan. These delays have raised concerns about the company’s ability to meet debt obligations and manage cash flow.

In addition, the WTE segment posted a pre-tax loss of RM15.3mil in the first half of FY24 due to higher plant outages.

Both projects were delayed due to pandemic-related movement restrictions and adverse weather, Belqaizi explains.

“For the DTU projects, progress was affected by the movement control order (MCO) and unusually severe weather, including heavy rainfall and flooding.

“The WTE project also faced temporary suspension of construction and commissioning due to the MCO.”

Today, both facilities are fully operational.

According to Belqaizi, the WTE plant can process 1,000 tonnes of municipal waste daily, converting it into 15 megawatt (MW) of electricity – a significant contribution to Malaysia’s waste management and clean energy ecosystem.

Birth of ‘Cypark 2.0’

One of the most critical moments in Cypark’s turnaround came with the entry of Jakel Capital as the largest shareholder after acquiring a 27.33% stake via a private placement in January 2023.

The emergence of the investment arm of textile trading and property developer as a shareholder of Cypark led to its share price more than doubling in value.

The capital injection stabilised finances, while Jakel’s emphasis on governance and performance helped reset the company’s operational foundations.

“With Jakel Capital as our major shareholder, Cypark has successfully navigated past challenges and regained our growth momentum.

“The capital injection and strong emphasis on governance enabled Cypark to swiftly complete previously delayed projects, restoring our credibility and operational readiness to establish ourselves as the largest pureplay renewable energy company in Malaysia,” Belqaizi says.

But this is not just a recovery; it’s a reinvention of sorts.

The arrival of Jakel helped its transition to the next phase or ‘Cypark 2.0’, its renewed two-pronged strategy.

Its strategy involves growing long-term renewable and environmental assets, while enhancing earnings resilience through scalable, recurring income streams.

Cypark’s core business model relies on concessionaire-based assets like solar parks and WTE facilities. These projects offer high long-term returns but require substantial upfront capital, often leading to short-term negative cash flows.

To address this, the company is looking at a more balanced approach that includes quicker-turnaround EPC and operations and maintenance (O&M) projects.

“While asset ownership remains central to our approach, we are also leveraging our EPCC and O&M expertise to generate more predictable near-term cash flows,” Belqaizi says.

He adds that given the long gestation period of investment in concessionaire-based projects, it has been focusing on strengthening its cash flow to help secure more EPC contracts for renewable energy projects, which can generate immediate cash inflows.

“Additionally, optimal cash inflow from fully operational existing assets, combined with the strategic restructuring of our financial obligations, will strengthen and sustain our cash flow and improve our P&L (profit and loss) in the immediate future,” he points out.

Leading Malaysia’s green transition

With its existing capacity of 400MW – including Malaysia’s first and largest floating solar plant and the only operational WTE plant – Cypark is already the country’s largest pure-play renewable energy provider.

But the company is not content with resting on that title.

“In the immediate term, we are drawing on our expertise from developing Malaysia’s first and largest floating solar project by partnering with Terengganu Inc to explore collaborations with the state government to develop a 500MW hybrid hydrofloating solar plant at Tasik Kenyir.

“Meanwhile, we are also building on our expertise from Malaysia’s first and only operational WTE plant to benefit from government initiatives aimed at developing 18 WTE plants across Peninsular Malaysia over the next 10 years,” Belqaizi shares.

He adds that as Malaysia accelerates its clean energy transition under the National Energy Transition Roadmap 2050 framework, Cypark is well-positioned to participate in upcoming solar, battery energy storage system and WTE opportunities.

Cypark’s journey over the past two years has been one of introspection, recalibration, and resilience.

While the setbacks were real and significant, the recovery underway is equally tangible anchored on “Cypark 2.0’, building a company that can scale sustainably, perform consistently, and support Malaysia’s clean energy future.