Cypark Resources Bhd is expected to record a bumper fourth quarter after securing government approval for a substantial increase in tipping fees at its waste-to-energy (WTE) facility in Negeri Sembilan. Analysts note that the rate adjustment — from RM33/tonne to RM96/tonne — marks a significant milestone for the company and reflects greater alignment with Malaysia’s evolving waste management landscape.
The new rate, approved by the Ministry of Housing and Local Government, also mirrors the proposed fee for the upcoming WTE plant in Sungai Udang. Analysts estimate the revised fee could boost Cypark’s revenue by anywhere between RM300,000 to RM20 million annually.
According to PublicInvest Research, Cypark is poised to benefit from retroactive adjustments dating back to April 2023. However, the firm maintains a cautious outlook pending the release of Cypark’s third quarter results, which will shed light on the operational performance of its Ladang Tanah Merah facility following a recent fire and subsequent rectification works.
The WTE plant, which resumed operations in October 2024, was upgraded for greater efficiency and remains under an 18-year feed-in tariff agreement. While PublicInvest retained its “neutral” call with an 80 sen target price, Maybank Investment Bank reaffirmed its “buy” rating with a revised target of 87 sen, having already factored in the fee increase.
With both improved financials and enhanced operational reliability, Cypark appears well-positioned to capitalise on Malaysia’s growing WTE momentum. Still, analysts caution that execution risks remain and all eyes are on the upcoming quarterly performance for further clarity.
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Source: The Edge