Lately, I have been searching for a company which has good profit margins, a business model which is non-conventional (i.e., not manufacturing, banking, plantation, and trading in nature), and resilient to external market shocks. I hope I have found the right company! This week I will be looking at Cypark Resources Berhad (5184). Cypark is a company that is involved with the provision of environmental solutions. It has 4 main business segments which are: 1. Environmental engineering: Provision of nature conservation and environmental improvement services. 2. Landscaping and infrastructure: Provision of landscape services, project management services, and infrastructure development. 3. Maintenance: Provision of specialist maintenance works on leachate treatment plants, landscape services for parks, and maintenance of public amenities. 4. Green technology & renewable energy: Solar panel, biogas, biomass, waste-to-energy, and other renewable energy project
This is a follow-up review of my previous post on Zhulian back on February 2, 2018. Previously, I opined that this counter should begin to consolidate after a significant price retracement as it had been trading close to its Net Assets per share price of around RM1.30. Six months after my previous review and it seems like its share price has started to consolidate. My last post was based on the financial results of Q4 2017. The company has since released the financial results for 2 quarters. Based on its latest financial results, there seems to be some improvement in its profit after tax margin. Profit after tax in Q2 2018 was about RM12 million, was higher than Q1 2018 and Q4 2017, but generally lower than PAT in 2017, see Table 1: Quarterly Financial Results of Zhulian. It has been reporting the same story in its quarterly reports that its decline in revenue was due to a drop in sales in its Thai business operations. Cumulatively, its financials fared much worse, see Tabl