KUALA LUMPUR (May 25): Shares in Cypark Resources Bhd dropped as much as 32% or 12 sen to a low of 34 sen following resumption of short selling under proprietary day trading (PDT) and intraday short selling (IDSS) on Wednesday (May 25).

According to an earlier local bourse filing, the stock exchange suspended short selling under PDT and IDSS for the rest of the trading day on Tuesday as the last done price of the approved securities had dropped more than 15 sen/15% from the reference price.

On Tuesday, shares in Cypark ended the day 16 sen or 24.24% lower at 50 sen.

Meanwhile on Wednesday, the stock opened 1.5 sen or 3% higher at 51.5 sen before nosediving to hit the low of 42.5 sen.

Shares in Cypark then closed 12 sen or 24% lower at 38 sen, giving it a market capitalization of RM226.66 million.

Since the beginning of the year, the stock has fallen by 57.78%.

In the first quarter ended Jan 31, 2022 (1QFY22), Cypark’s net profit increased 5.56% to RM15.82 million from RM14.98 million in the same quarter last year, on lower recognition of deferred tax expenses.

Quarterly revenue, on the other hand, rose by 0.95% to RM77.2 million from RM76.48 million on better performance in its renewable energy (RE) division.

Based on the group’s latest annual report, the group’s net debt has soared to RM1.06 billion in FY21 compared with RM859.69 million in the previous year. It has a gearing ratio of 47% as at FY21.

Last year, the group proposed a private placement of up to 20% of its total number of issued shares to raise up to RM108 million at an illustrative price of RM1.03 per share.

It has earmarked RM96 milion of the proceeds to fund its 100MW LSS 3 project in Merchang, Terengganu and RM11 million for partial repayment of borrowings and the remaining for private placement expenses.

The group is also building a 20-megawatt (MW) waste-to-energy (WTE) plant at Ladang Tanah Merah, Negeri Sembilan and is participating in two WTE tenders, one in Johor (Bukit Payong) and one in Melaka (Sungai Udang), collaborating with Johor and Melaka State-owned companies, respectively.

Meanwhile in a separate local bourse filing on Wednesday, the group clarified that it is not aware of any significant or unusual  developments relating to the Group’s business and affairs which contributed to the reduction in its share price.

“The Board is not aware of any rumour or report concerning the business and affairs of the Group that may account for the unusual trading activity,” it said.

According to Cypark’s website, it is principally involved in integrated renewable energy, green technology, environmental engineering solutions and construction engineering.