KUALA LUMPUR: CYPARK Resources Bhd is revving into high gear of growth thanks to the fast-growing multi-billion ringgit renewable energy industry in Malaysia and Southeast Asia.
With RM2 billion worth of contracts already tendered, the company has laid out plans to further beef up its tender book as it looks to capture a larger chunk of the market in the country as well as the region.
General manager Acmat Nadhrain Ibrahim said Cypark would continue to ride on the renewable energy industry’s growth, which was expanding at an astounding rate, even outpacing the country’s economic growth.
Before competition got stiffer, Cypark was already planning to expand to neighbouring countries in need of “greener” energy, he said.
“It is a multi-billion ringgit industry. It all started when the government encourages the use of renewable energy. We are gearing up to tender for more contracts in all segments of the industry, not just solar energy,” he told NST Business.
“Plans are afoot to spread our wings overseas to take advantage of the growing renewable energy industry in the region.
“Within the next few years, we expect our sales to double that of the current financial year.”
He said the industry had low entry barrier for new market players.
With the mushrooming of renewable energy players, the cost of renewable energy technologies had dropped, said Achmat.
The government has set a target for renewable energy to account for 2,080 megawatts (MW), or 11 per cent of the energy mix, by 2020 from the current 985MW, or 5.5 per cent.
Other governments across Southeast Asia are also starting to embrace clean energy. According to reports, Indonesia aims to achieve 17 per cent renewable energy by 2020 from the current 11 per cent.
The Philippines has targeted to achieve 35 per cent renewables in its energy mix by 2030 while Vietnam has set a target of 25 per cent by 2030.
Cypark’s recent quarterly results also beat analysts’ estimates.
Its share price has generated 23.92 per cent return year-to-date, but Achmat believes that the price is being traded below its true value.
The stock closed 1.17 per cent higher to RM2.59 on Friday after three consecutive days of price drop.