Cypark International is an integrated landscape and environmental services group that provides design and build services, build services and landscape maintenance. Cypark is also a supplier of plant materials, granites, and landscaping and architectural lighting. Cypark currently operates through its own offices and network offices in Qatar, UAE, Saudi Arabia, Thailand, China and Singapore.
Philip Capital Management (PCM):
About Cypark – Cypark is the only locally listed environmental technology & engineering specialist. It was established in 2004 and was listed on the Main Board of Bursa Malaysia on 15 October 2010. Its principal activities involve landfill closure and upgrades, construction of waste transfer stations and operating and maintenance of waste facilities (O&M) (see Picture 1).
Unlike Alam Flora, Cypark is NOT involved in rubbish collection; its business actually starts from the construction and operation of transfer stations. Transfer stations are centrepoints where the rubbish trucks dump the rubbish. From the transfer stations, Cypark then sends the rubbish to the landfill sites. Cypark is also involved in landfill closure and upgrades which require a leachate treatment plant to discharge the leachate, a dirty toxic liquid composed from rubbish.
No strong competitors – As Cypark is the only listed rubbish solutions provider in Malaysia and has good reputation on work done on Taman Beringin site, this will well keep them in good running for similar projects going forward. As per the Cypark prospectus, the key competitors of Cypark are UEM Enviro, KUB-Berjaya and Alam Flora. All these top tier players including Cypark take up 30% of the solid waste and landfill management services market share in Malaysia, whilst the rest are serviced by smaller fragmented players. We believe Cypark, being a Bumiputera company stands a good position to win more waste management jobs going forward given the plentiful landfill closure and upgrades available. Moreover, its competitors are not strong in landfill business.
112 unsanitary landfills throughout Malaysia – According to the management and news reports, there are approximately 112 unsanitary landfills or simply called dump sites throughout Malaysia waiting to be closed and rehabilitated, some of which to be upgraded to sanitary landfills. Consequently, the government has recently in its 10th Malaysia Plan unveiled a total approved budget of RM 1.5 bn for waste management spending. Out of the 112 unsanitary landfills, 16 are currently being closed and upgraded by Cypark, which indicates that Cypark has the experience and is in good stead to secure more of the landfill closure and upgrade contracts.
Federalisation of waste – Since the enactment of Waste Management Act in 2007, waste management had been taken over by the Federal Government (Federal) from respective states. This is an important change whereby all awards of projects will be given by the Federal and there will be less confusion over whom to deal with in terms of the administrative side of waste management projects. This facilitates Cypark's project tendering and collection of revenue from Federal. More importantly, federalisation of waste means funding is not a major issue.
Philip Capital Management (PCM):
About Cypark – Cypark is the only locally listed environmental technology & engineering specialist. It was established in 2004 and was listed on the Main Board of Bursa Malaysia on 15 October 2010. Its principal activities involve landfill closure and upgrades, construction of waste transfer stations and operating and maintenance of waste facilities (O&M) (see Picture 1).
Unlike Alam Flora, Cypark is NOT involved in rubbish collection; its business actually starts from the construction and operation of transfer stations. Transfer stations are centrepoints where the rubbish trucks dump the rubbish. From the transfer stations, Cypark then sends the rubbish to the landfill sites. Cypark is also involved in landfill closure and upgrades which require a leachate treatment plant to discharge the leachate, a dirty toxic liquid composed from rubbish.
No strong competitors – As Cypark is the only listed rubbish solutions provider in Malaysia and has good reputation on work done on Taman Beringin site, this will well keep them in good running for similar projects going forward. As per the Cypark prospectus, the key competitors of Cypark are UEM Enviro, KUB-Berjaya and Alam Flora. All these top tier players including Cypark take up 30% of the solid waste and landfill management services market share in Malaysia, whilst the rest are serviced by smaller fragmented players. We believe Cypark, being a Bumiputera company stands a good position to win more waste management jobs going forward given the plentiful landfill closure and upgrades available. Moreover, its competitors are not strong in landfill business.
112 unsanitary landfills throughout Malaysia – According to the management and news reports, there are approximately 112 unsanitary landfills or simply called dump sites throughout Malaysia waiting to be closed and rehabilitated, some of which to be upgraded to sanitary landfills. Consequently, the government has recently in its 10th Malaysia Plan unveiled a total approved budget of RM 1.5 bn for waste management spending. Out of the 112 unsanitary landfills, 16 are currently being closed and upgraded by Cypark, which indicates that Cypark has the experience and is in good stead to secure more of the landfill closure and upgrade contracts.
Federalisation of waste – Since the enactment of Waste Management Act in 2007, waste management had been taken over by the Federal Government (Federal) from respective states. This is an important change whereby all awards of projects will be given by the Federal and there will be less confusion over whom to deal with in terms of the administrative side of waste management projects. This facilitates Cypark's project tendering and collection of revenue from Federal. More importantly, federalisation of waste means funding is not a major issue.
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