Thursday 28 Mar 2024
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KUALA LUMPUR (May 15): Cahya Mata Sarawak Bhd (CMS) announced today that its net profit for the first quarter ended March 31, 2019 (1QFY19) came in at RM40.76 million, up 5% from RM38.98 million in the same quarter a year ago, on the back of stronger performance across its core businesses.

Quarterly revenue grew 17.8% to RM418.18 million, from RM354.99 million previously, the group's filing today showed.

The stronger performance was seen in its cement, construction materials and trading, and property development divisions.

During the quarter, CMS said its cement division reported a 67% higher profit before tax (PBT) due to higher sales and lower clinker production cost per metric tonne resulting from a 24% higher production volume, as well as lower repair costs.

Its construction materials and trading division reported a 128% increase in PBT due to higher revenue, higher gross profit margin and a reversal of provision for soil erosion remedial work.

PBT for its property development division jumped 654%, mainly attributable to recognition of a land sale, higher number of condominium units sold and higher rental income from unsold apartments.

CMS' construction and road maintenance division, meanwhile, reported a 15% lower PBT despite higher revenue recorded. This was due to 4% lower overall gross profit margin as a result of cost revisions in projects and higher road maintenance cost.

Commenting on the group's results, CMS group chief executive officer Datuk Isaac Lugun said the group's first quarter performance was in line with projections and expectations of a full rebound once businesses and other economic factors had normalised post 14th general election (GE14).

"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.

"We are also confident on our strategic investments and particularly OM Sarawak Sdn Bhd, the group's second largest PATNCI (profit after tax and non-controlling interest) contributor in 2018, and Sacofa Sdn Bhd to continue to be significant contributors," he said in a separate statement.

CMS added that its construction and road maintenance division is focusing on positioning itself to increase its order book through major new infrastructure projects recently announced by the state government.

At 2.56pm, shares in CMS were 8 sen or 2.5% higher at RM3.27, for a market capitalisation of RM3.47 billion.

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