Cahya Mata first quarter net profit up 35%

by **Cals** Fri 16 May 2014, 02:08

Business & Markets 2014

Written by Yen Ne Foo of theedgemalaysia.com

Thursday, 15 May 2014 11:32

KUALA LUMPUR: Cahya Mata Sarawak Bhd (CMSB) said it is “on track to perform solidly” this financial year ending Dec 31, 2014 (FY14), after recording a 35% increase in net profit to RM38.9 million for the first quarter ended March 31 (1QFY14) from RM28.73 million a year ago.

Revenue for 1QFY14 grew 20% to RM373.24 million from RM310.36 million on higher revenue from its construction materials and trading division.

“The main contributors to the group’s revenue were the cement, construction materials and trading, and construction and road maintenance divisions. Together, these three divisions contributed 89% to the group’s revenue,” said CMSB in a statement yesterday.

“While the operating environment faced by the group will remain challenging, the board expects the group’s financial performance to be good for FY14. The group’s strong financial position will enable it to invest in new business opportunities especially in Sarawak,” it added.

CMSB group managing director Datuk Richard Curtis noted that CMSB’s 20% stake in the ferro silicon and manganese alloys smelter joint-venture project with Australia-listed OM Holdings Ltd and 40% stake in an integrated phosphate products complex with Malaysian Phosphate Additives Sdn Bhd and Arif Enigma Sdn Bhd — plus other investments being evaluated — are also poised to significantly drive up shareholder value.

“We strongly believe that CMSB is one of the best proxy listed investments for Sarawak’s accelerating economic growth. This is driven by the state’s plan to promote energy-intensive industries under the Sarawak Corridor for Renewable Energy initiative and consequently the infrastructure and related-services required across the state,” he said.

“These two drivers are set to propel the state’s economy to new heights,” he added.

The group’s basic earnings per share also rose to 11.46 sen in 1QFY14 from 8.89 sen in 1QFY13, representing a 14.5% increase. The board did not declare any dividends for the quarter under review. CMSB shares closed at RM9.86, up seven sen yesterday.

This article first appeared in The Edge Financial Daily, on May 15, 2014.