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
HeveaBoard Bhd (5095) is a Company that manufactures and sells high grade particleboards (PB) and ready-to-assemble (RTA) furniture. I understand that this stock has been heavily covered and monitored by most investors and finance houses, but I’d like to break it down to the lay investor. Hevea has a very small presence in Malaysia – 3% of annual turnover, and it largely sells its furniture overseas, especially Japan (31%), China (22%), Australia (8%), and Korea (5%). About 78% of its turnover is from the Asia Pacific region and 5% from Europe. Focusing on Asia Pacific is the right strategy as this region is experiencing sustained growth. Check out the article from Forest & Wood Products Australia regarding the potential growth of PB and MDFs in the Asia Pacific region: http://www.fwpa.com.au/statistics-count-newsletter/1246-viewpoint-particle-board-and-mdf-market-development-in-asia-and-access-to-low-grade-logs-and-residue-materials.html Below is a summary of the article: There