CMS to remain resilient, cautiously optimistic outlook

KUALA LUMPUR: Cahya Mata Sarawak Bhd (CMS) remains resilient by leveraging its healthy balance sheet and diverse portfolio of businesses moving forward, despite the ambiguity and the prevailing headwinds.

Group chairman Tan Sri Abdul Rashid Abdul Manaf said CMS is also cautiously optimistic that it would deliver a satisfactory performance for the new financial year.

In his message in the company’s Integrated Annual Report 2020 titled “Collaborate To Reinvigorate”, he said growth would come by way of OM Materials (Sarawak) Sdn Bhd in the Sarawak Corridor for Renewable Energy (SCORE); via SACOFA Sdn Bhd in the state’s push to fully embrace the digital economy.

Growth would also be supported through the cement, construction materials & trading, construction, and road maintenance divisions as the Pan Borneo Highway project and other major infrastructure projects announced by the Sarawak government begin to ramp up.

“One of the key strategies that we will be looking at to ensure we have enough cash in hand is to issue new Sukuk amounting to RM350 million under our existing Sukuk programme of up to RM2.0 billion in nominal value.

“The proceeds from the new Sukuk will be used to refinance outstanding Sukuk of RM500 million in nominal value which will be maturing on May 5, 2022,” said Abdul Rashid.

On the same note, CMS group managing director Datuk Isaac Lugun expressed confidence that CMS is on track to achieve its target of RM500 million in profit after tax and noncontrolling interests (PATNCI) per annum by 2024 and achieve the target of becoming the most admired Sarawak public listed company.

“To attain these targets, we will maintain a laser focus on our three-pronged growth strategy and will continue working with our strategic partners to derive the best value.

“Together with a strengthened leadership bench, which we continue to build upon, we will continue to be clear about what we want to achieve and will go all out to achieve it,” said Isaac.

In the financial year 2020, CMS’ PATNCI stood at RM194.81 million. CMS’ operations encompass over 30 companies across six business segments, and boasts a workforce of 2,147 people in 55 offices throughout Sarawak.