CMS sees 1Q19 profit rising 10 per cent to RM62.44 million
KUALA LUMPUR: Cahya Mata Sarawak Bhd reported a total revenue of RM418.18 million and a pre-tax profit (PBT) of RM62.44 million for the first quarter ended March 31, 2019 (1Q19).
Both its revenue and PBT increased by 18 and 10 per cents respectively, in comparison to the preceding year’s corresponding quarter’s revenue of RM354.99 million and PBT of RM56.96 million.
Year-on-year, the group’s profit after tax and non-controlling interests (PATNCI) of RM40.76 million for the period was five per cent higher than RM38.98 million reported for 1Q18.
Earnings per share (EPS) stood at 3.80 sen versus 3.63 sen from the corresponding threemonth period of last year. The improvement in the Group’s financial performance during this period was mainly due to the strong performance by its traditional core businesses, namely Cement Division, Construction Materials & Trading Division and Property Development Division.
Commenting on the results, CMS group chief executive officer – corporate, Datuk Isaac Lugun in a statement said: “The strong performance for the first quarter of this year is in line with our projections and expectations of a full rebound once businesses and other economic factors had normalised post GE14.
“Our traditional core businesses, particularly our Cement Division lead the charge. Going forward, we expect the rebound to continue and to be driven by the ongoing Pan Borneo Highway project and the State government’s increased spending on infrastructure.”
As seen in the state’s record budget for 2019, RM9.07 billion is spent on development which in part will fund the implementation of major infrastructure projects including the Coastal Road and Second Link Road – tenders for which have started being awarded – the Water Grid and Electricity projects and the State government’s push for rural development.
This ensures that the State will be a pocket of increased construction activity in Malaysia for the next few years, Isaac said.
“Going forward, we are also confident on our strategic investments and particularly OM Sarawak Sdn Bhd, the Group’s second largest PATNCI contributor in 2018, and Sacofa Sdn Bhd (Sacofa) to continue to be significant contributors,” he said.
“Although OM Sarawak’s prospects in the immediate-term are challenging due to the trade war between China and the US and the expected slowdown of China’s economy, the Group remains confident on its longerterm prospects due to its strong underlying fundamentals.”
The group also remains positive on Sacofa as it aims to capitalise on the State’s push to fully embrace digital economy with an allocation of RM2 billion for telco-infrastructure.
“Both OM Sarawak and Sacofa, alongside our other strategic investments in Kenanga Investment Bank Berhad and KKB Engineering Berhad, are part of our growth strategy for our strategic investments to drive the next wave of growth.
“The aim of this growth strategy is for our traditional core businesses and our strategic investments to equally contribute to double the Group’s earnings in the next five years.