Cahya Mata Sarawak 1Q profit up 47% on stronger revenue

by **Cals** Tue 19 May 2015, 00:09

Cahya Mata Sarawak 1Q profit up 47% on stronger revenue

KUALA LUMPUR (May 18): Cahya Mata Sarawak Bhd ([You must be registered and logged in to see this image.] Financial Dashboard)’s net profit was RM57.42 million or 5.52 sen per share for the first quarter ended March 31, 2015 (1QFY15), up 47.6% on-year from RM38.9 million or 3.81 sen per share, mainly on strong contributions from construction materials and trading, cement, and construction and road maintenance.
Cahya Mata (fundamental: 3; valuation: 1.1)’s revenue was up 31.5% to RM490.99 million from RM373.24 million last year.
“The cement division recorded a 44% increase in profit before tax (PBT) of RM29.37 million in 1QFY15 over 1QFY14’s PBT of RM20.44 million due to higher sale volume on continued growth of cement demand in the state, improved operational efficiencies, lower volume of cement imported and higher volume of cement and clinker produced by the division,” said Cahya Mata, a company controlled by the family of Sarawak Governor Tun Abdul Taib Mahmud, in its filing to Bursa Malaysia today.
For the construction materials and trading division, PBT in 1Q15 rose by 145% to RM30.32 million from RM12.38 million in 1QFY14, primarily due to strong revenue from greater sales volume of quarry aggregates and premix and a rise in contract work and services from the spill-over projects from 2014, it said.
Meanwhile, the construction and road maintenance division posted a PBT of RM26.22 million, up 47% over 1QFY14’s profit of RM17.86 million, on the back of more works undertaken and longer road length maintained.
Cahya Mata group managing director Datuk Richard Curtis said: “With commendable performance recorded in 1QFY15, we expect to leverage on this positive momentum and record a strong financial performance for the full year of 2015.”
He believed that Cahya Mata was still one of the best proxy listed investments for Sarawak’s accelerating economic growth.
“This is consistent with the state’s promotion of energy intensive industries under the Sarawak Corridor for Renewable Energy (SCORE) initiative and the infrastructure and related services required across the state. These two drivers are set to propel the state’s economy and Cahya Mata to new heights,” he said.
He added that Cahya Mata’s 25% stake in the joint venture ferro silicon and manganese alloys smelter project with Australian-listed OM Holdings Ltd, its 40% stake in an integrated Phosphate Products complex withMalaysian Phosphate Additives Sdn Bhd and Arif Enigma Sdn Bhd – plus other investments being evaluated – are poised to significantly drive up shareholders’ value.
(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)