CMS records significant improvement in earnings for 1H18
KUCHING: Cahya Mata Sarawak Bhd (CMS) recorded significant improvements for its performance for first half of 2018 (1H18), driven by its associates’ healthy numbers.
Beyond this, CMS believes that its growth strategy for its strategic investments are expected to drive the next wave of growth for CMS Group.
Last week, CMS reported a total revenue of RM750.27 million and a pre-tax profit (PBT) of RM175.94 million for 1H18, an increase by 15 and 32 per cent, in comparison to the preceding year’s corresponding period’s (1H17) result of RM650.23 million and RM132.91 million respectively.
The group’s profit after tax and non- controlling interests (PATNCI) of RM130.60 million for 1H18 was 57 per cent higher than 1H17’s PATNCI of RM83.30 million. Earnings per share (EPS) also stood notably at 12.16 sen versus 7.75 sen reported for the corresponding six-month period of last year.
It explained that the significant improvement in the Group’s finan- cial performance was mainly due to increase in the share of results of associates namely: OM Materials (Sarawak) Sdn Bhd, SACOFA Sdn Bhd, KKB Engineering Berhad and Kenanga Investment Bank Bhd. Collectively, their PBT catapulted by 1,101 per cent to RM74.88 million during 1H18 from a loss of RM7.48 million in 1H17.
The main contributor to this performance was the strong turnaround at OM Materials (Sarawak) where a PATNCI of RM48.48 million was registered (for CMSB’s 25 per cent share) compared with a loss of RM26.21 million for the corresponding period in 2017.
It noted that this strong performance by OM Materials (Sarawak) is expected to be sustained if ferrosilicon and manganese alloy prices and production outputs are maintained at their current levels.
The group also recorded a robust profit contribution from SACOFA where a PBT of RM21.11 million was recorded compared to RM18.88 million for the corresponding period in 2017.
Commenting on the results, CMSB’s Group chief executive officer – Corporate, Dato Isaac Lugun, said: “The improvement in our financial performance for first six months of this year has mainly been due to the strong turnaround of our associate, OM Materials and improved contributions from our other associate companies including SACOFA.
“We believe that our growth strategy for our strategic investments to drive the next wave of growth for CMS Group is beginning to come to fruition.
“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 three to five years.”
Meanwhile, he said, CMS also expect improved performance from its traditional core businesses of Cement and Construction Materials despite the operational challenges being faced by the two Divisions including the recent overall downgrade of the construction sector by various research houses in Malaysia.
“This growth is expected to come from the Pan Borneo Highway, which is gradually gathering momentum, and is expected to drive the construction sector in the State for the next two to three years,” he highlighted Turn to Page B2, Col 1