KUALA LUMPUR: OSK Research said Cypark Resources, the premier landfill rehabilitator in Malaysia, has announced its foray into the Renewable Energy (RE) space by setting up a 10MW RE Park on a previous landfill site in Pajam, Negeri Sembilan.
The research house said on Thursday, March 10 that it finds Cypark's current business of landfill management already fairly valued at a generous PER of 15x after the 77% share price rally since it picked Cypark as a 'Hidden Jewel' in its January outlook report.
'Nonetheless, the RE business provides great opportunity IF and WHEN the Renewable Energy Act is passed to allow for higher RE electricity tariffs.
'The RE Act could mean that the Pajam RE Park alone will contribute some 22% in additional value for Cypark and lift its indicative target price to RM2.98. With the potential for more RE parks, Cypark makes for an interesting Trading Idea pending the passing of the RE Act,' it said.
The research house said on Thursday, March 10 that it finds Cypark's current business of landfill management already fairly valued at a generous PER of 15x after the 77% share price rally since it picked Cypark as a 'Hidden Jewel' in its January outlook report.
'Nonetheless, the RE business provides great opportunity IF and WHEN the Renewable Energy Act is passed to allow for higher RE electricity tariffs.
'The RE Act could mean that the Pajam RE Park alone will contribute some 22% in additional value for Cypark and lift its indicative target price to RM2.98. With the potential for more RE parks, Cypark makes for an interesting Trading Idea pending the passing of the RE Act,' it said.
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