The landfill restoration specialist group has also successfully completed landscaping works overseas such as the Asian Games Village project in Doha, Qatar, Palm Jumeirah Marina Apartments and the Burj Dubai Business Park II in Dubai, UAE.
Currently, the group is involved in major projects located throughout Peninsular Malaysia including Negeri Sembilan, Johor, Terengganu, Pahang, Perlis and Putrajaya.
Daud expressed his sentiments on the company’s growth following indications from local and international sources pointing towards a positive direction for Cypark’s industry.
“Landfills will remain the predominant route for waste in Malaysia for the near future,” he affirmed. “There are about 20,000 tonnes of waste generated in 2009, most of which land up in unsanitary landfills. These unsanitary landfills must be closed and replaced by sanitary ones by the government, hence creating high demand for landfill restoration services.
“On another note, the solid waste management market is expected to grow robustly. The solid waste management market was valued at RM3.82 billion in 2009 and we expect it to grow to about RM5 billion in 2013 based on CAGR of 5.3 per cent from 2009 to 2014,” he said.
“From the recently tabled 10th Malaysia Plan (10MP), the government’s plans to remediate and upgrade another 112 landfill sites over the period from 2011 to 2015 would be one of the immediate opportunities for us,” he added.
To recap, the group planned to conduct a public issue of 30 million new ordinary shares worth RM0.50 each and at an issue price of RM1.10 per share, payable in full upon application from its initial public offering later in October this year.
The public issue will be allocated through 7.25 million of ordinary shares for the public by way of balloting, three million new ordinary shares for directors, employees and business associates, and 19.75 million new ordinary shares by way of private placement to identified investors, all at RM0.50 each.
“We aim to enhance our profile through our listing status. We aim to do this to further expand our business as well as the existing and future operations of the company. It would also assist in reducing out financial costs as well,” affirmed the CEO.
As for challenges, Cypark is subject to market forces and new players coming to compete in its niche market. In addition, it had to ensure its technology and engineering solutions does not become obsolete.
In this regard, the land transformation specialist has taken steps to mitigate this by constantly seeking out new markets, providing a wider range of product and services as well as expanding its efforts in research and development to improve its quality management system.
“Ups and downs in the stock market are exposures which could happen to all industries but Cypark has proven itself a resilient company that has made it through several market conditions, remaining profitable even in the recent economic downturn,” Daud stated.
“We recorded more than 100 per cent increase in our net profit last year compared to the year before. We believe 2010 will be a good year too.”
Part of the group’s long term plan includes concentrating on the provision of integrated environmental solutions, specifically Colaris, landfill restoration, environmental monitoring and management, Garis and wastewater treatment.
“We will be particularly vested in the provision of landfill remediation and restoration services and solutions moving forward, focusing on landfill projects gazetted by the Federal Government through KPKT (Ministry of Housing and Local Development),” he affirmed.
“Besides that, our research and development activities innovate and develop new services and solutions which will continue to give our group a competitive advantage in the market.”
Daud noted that the group might expand over to Sarawak and Sabah should it be given the opportunity.
“In the government’s 10MP plan to close down 112 landfills, there are also a number of landfills in Sabah and Sarawak on that list. If we are able to remediate the landfills in East Malaysia, we will definitely expand our business to the two states.”
“I’m quite confident that the response will be good,” he concluded. “Our business is very sustainable.”