KUALA LUMPUR (April 24): Cypark Resources Bhd shares edged up in the afternoon session on Tuesday after CIMB Research initiated coverage on the stock at RM1.89 with an Outperform rating and target price of RM2.82.
In a note Tuesday, CIMB Research said Cypark, Asean’s only listed renewable energy (RE) developer was set to boost FY13 core EPS by 91% yoy as it increases RE capacity by eightfold to 60MW.
“Execution risks are mitigated by Malaysia’s feed-in-tariff, government support and 16-21 year offtake agreements with Tenaga.
“As its risk profile improves due to a sixfold jump in fixed revenue by FY13, more value will be unlocked. Cypark is trading at 6.3x FY13 P/E while offering 6% net yield. We begin coverage with an Outperform and RM2.82 target price, based on 10% discount to SOP due to its small size,” it said.