KUALA LUMPUR: The time is opportune for a re-look into Cypark Resources Bhd, according to Public Investment Bank Bhd (PublicInvest).
This is given the growing benefits from its increasing exposure to the renewable energy (RE) segment.
Cypark owns, operates and manages 47 MWdc of solar plants, and expects to increase to at least 200 megawatts within the next two years from its waste-to-energy (WTE), biogas, floating and ground-mounted solar installations.
Publicinvest said Cypark's 20MW WTE and 4MW biogas plant in Ladang Tanah Merah (LTM) was expected to be ready for operation from July next year.
This will provide the company with a more sustainable concessionaire-type business in its RE space.
PublicInvest also expects 100MW from Cypark's LSS3 projects to commission by financial year 2022 (FY22).
"We foresee its RE segment contributions more than doubling from FY19, supported by earnings improvements from the WTE, biogas, LSS3 and Net Energy Metering (NEM) businesses."
The firm said Cypark currently trades at only five times FY20 price-to-earnings (PE) ratio, compared to an average of 15x for its peers.
PublicInvest has upgraded its call on Cypark to "outperform" with a target price of RM1.84.