Cahya Mata Sarawak Bhd

Cahya Mata Sarawak Bhd

Postby winston » Tue May 17, 2016 6:43 am

not vested

Cahya Mata Q1 income down 75% to RM11.77m

Cahya Mata Sarawak Bhd’s total comprehensive income attributable to the owners fell 75.2% to RM11.77mil from RM47.46mil a year ago due to losses from associates.

The company said on Monday profit attributable to the owners of the company fell to just RM1.05mil in the first quarter from RM57.42mil a year earlier.

Source: StarBiz
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 104142
Joined: Wed May 07, 2008 9:28 am

Re: Cahya Mata Sarawak Bhd

Postby winston » Tue May 17, 2016 10:06 am

not vested

Cahya Mata Sarawak (CMS MK)
Share Price: MYR3.30
Target Price: MYR4.60
Recommendation: Hold

Double whammy

The lackluster 1Q16 reported net profit of MYR1m was due to temporary earnings weakness at its core businesses and higher-than-expected associate loss from OMS mainly due to one-off forex losses.

Excluding the forex losses, CMS 1Q16 core net profit would be higher, but the quantum of such losses will need to be ascertained.

We maintain our earnings forecasts, HOLD call and MYR4.60 SOP-TP pending analyst briefing today.

Source: Maybank
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 104142
Joined: Wed May 07, 2008 9:28 am

Re: Cahya Mata Sarawak Bhd

Postby winston » Tue Jul 26, 2016 9:22 am

not vested

Cahya Mata Sarawak (CMS MK)

by Li Shin Chai

Share Price: MYR3.78
Target Price: MYR3.80
Recommendation: Buy

Wins Pan Borneo contract

The Pan Borneo Sarawak Highway project contract win will triple CMS’ outstanding orderbook to MYR1.45b while bolstering demand for its building materials.

We estimate a total net profit contribution of MYR30m (3sen EPS) over 4 years into 2020 but our forecasts remain intact, having factored in job wins.

Maintain BUY and our SOP-based TP of MYR3.80 for now pending further clarification with management.

Source: Maybank

https://factsetpdf.maybank-ke.com/PDF/3 ... cb199e.pdf?
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 104142
Joined: Wed May 07, 2008 9:28 am

Re: Cahya Mata Sarawak Bhd

Postby winston » Fri Jul 29, 2016 8:00 am

not vested

'Hold’ call on Cahya Mata maintained

By M&A Securities
Hold (maintain)
Target price: RM3.70

M&A Securities has kept its “hold” call on Cahya Mata Sarawak Bhd underpinned by its full-year earnings contribution from Sacofa, strong construction prospects related to Pan Borneo Highway project and the fact that the firm is riding on the growth from Sarawak Corridor of Renewable Energy initiative.

The research house said after two packages have been awarded to Sarawak consruction firms Zecon and Hock Seng Lee in the first quarter of 2016, a joint venture between Cahya Mata and Bina Puri Holdings Bhd had received a letter of award for the proposed development and upgrading workd of Pan Borney Highway.

The contract is valued at RM1.36bil.

The 70:30 JV is between PPES Works (Sarawak) Sdn Bhd (PPESW) and Bina Puri Sdn Bhd (BPSB).

The contract entailed Phase 1 of road construction works and bridges from Sungai Awik to Bintangor Junction in Sarawak. PPESW is 51%-owned by Cahya Mata, while the remaining 49% stake is owned by Sarawak Economic Development Corp.

BPSB is a unit of Bina Puri.

Given the contract sum, it thinks that the actual order book contribution to Cahya Mata is RM485mil or RM120mil per year.

“Although it is not a sizable amount for Cahya Mata, we expect the mega project to contribute earnings to other segments of the group given its strong profile.

“Cahya Mata is still the sole cement and clinker manufacturer in Sarawak as well as a leading pre-cast concrete maker and ready mix supplier in the state,” said M&A Securities.

Apart from that, Cahya Mata also stands to benefit from projects won by associate KKB Engineering, which was recently awarded a RM1.29bil contract to develop and upgrade the Pan Borneo Highway (from Sungai Arip Bridge to Bintulu Airport Junction).

“The new contract win came within our expectations and we believe CMS will continue to remain the front runner to clinch more contracts from Pan Borneo Highway in the near future,” it said.

It maintained its target price of RM3.70 for now based on sum-of-part valuation (ascribing 15% discount), implying 15 times financial year 2017 price-to-earnings ratio.

Source: The Star
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 104142
Joined: Wed May 07, 2008 9:28 am

Re: Cahya Mata Sarawak Bhd

Postby winston » Mon Aug 15, 2016 8:42 am

Cahya Mata to bank on demand for cement

BY TOH KAR INN

The construction proxy picked up momentum in mid-May and have since registered a share price growth of 17.7% as of Aug 12. CMSB is a good construction proxy for investors looking to capitalise on Sarawak’s wave of new infrastructure project.

PETALING JAYA: Although Cahya Mata Sarawak Bhd (CMSB) stock fell drastically in April ahead of the Sarawak state election, interest seems to be stirring of late. CMSB has been lagging behind due to the weakness of its ferrosilicon business while many other construction stocks had rallied, analysts said.

The construction proxy picked up momentum in mid-May and have since registered a share price growth of 17.7% as of Aug 12. CMSB is a good construction proxy for investors looking to capitalise on Sarawak’s wave of new infrastructure project.

This is because construction players who have clinched these projects in Sarawak are likely to rely on CMSB for the construction materials, given that CMSB has a dominant market share in the state’s cement business.

With the biggest packages of the RM16bil Pan Borneo Highway portion already handed out, construction players will now focus on increasing capacity and sourcing for materials.

Some RM9bil worth of contracts from the total RM16bil had since been awarded by Lebuhraya Borneo Utara Sdn Bhd to expedite the construction of the 1,089km Sarawak portion of the highway which stretches from Telok Melano to Merapok.

The ramping up of new infrastructure developments meant that construction materials suppliers would need to increase capacity in order to meet the incoming demand spike.

CMSB had a dominant market share in construction material supply in Sarawak, as it owns the only two cement manufacturing plants there with a combined annual capacity of 1.75 million tonnes.

“Each successful contractor will only get a parcel of the Pan Borneo Highway project,” said Alliance DBS Research.

“Therefore, we do not expect CMSB to clinch any further contracts for this project.

“CMSB will still benefit from the higher demand for its cement as well as construction materials and trading divisions,” according to Alliance DBS Research.

CMSB’s new RM190mil cement plant with one million tonnes per annum capacity in Mambong is ready to meet demand which is expected to reach 1.8 million tonnes in FY16. M&A Securities reported that demand was expected to grow by 3% to 4% every year.

The group estimated that the Pan Borneo Highway project would need 12,000 tonnes per year until 2021. The cement plant is currently operating at 65% to 70% capacity.

“The new plant will also provide CMSB with reserve capacity in the event that its other plants are shut down for maintenance,” said Alliance DBS Research.

The Pan Borneo Sarawak Highway project contract win was expected to triple CMSB’s outstanding order book to RM1.45bil while bolstering demand for its building materials.

The job scope involved the development and upgrading of the Sungai Awik Bridge- Bintangor Junction stretch, expected to be completed by mid-2020.

CMSB’s 70% stake in the joint venture with Bina Puri for the RM1.36bil contract implied RM951mil for its portion of the contract value. This increased CMSB’s outstanding order book significantly by three times to RM1.45bil.

Assuming a pre-tax profit margin of 8%, Maybank IB Research forecast a total net profit contribution of RM30mil over four years into 2020.

An analyst opined that CMSB’s financial performance would depend on whether ferrosilicon prices recover.

OM Materials Sarawak Sdn Bhd, a 25%-owned subsidiary of CMSB, which operates a ferrosilicon alloy smelting plant, faced a plunge in commodity prices and weak ringgit in 2015. This eventually led to huge hedging losses which amounted to US$15mil to US$20mil.

Ferrosilicon prices as quoted by the Zhengzhou Commodity Exchange have been on an upward trajectory since December last year, with an increase of 35.7%.

“Investors can look forward to the group’s upcoming second quarter results announcement, as well as the loan restructuring of its associate OM Materials (Sarawak) Sdn Bhd, which will mitigate the impact of hedging losses to CMSB,” she said.

According to an analyst, CMSB will be taking up additional gearing for its 40%-owned business, Malaysian Phosphate Adhesives Sdn Bhd. “It is not expected to be too excessive, so it should not be a concern,” she said.

From a valuation standpoint, CMSB currently trades at a price-earnings ratio of 21.4 times. The group’s balance sheet has a net cash value of RM140mil, as of March 2016.

Alliance DBS Research said that the group’s cash balance had reduced significantly in 2015 as it acquired Sacofa Sdn Bhd and purchased landbank in Samalaju.

CMSB reduced its dividend payout to 20% in financial year 2015 in order to conserve some cash.

Source: The Star

http://www.thestar.com.my/business/busi ... or-cement/
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 104142
Joined: Wed May 07, 2008 9:28 am

Re: Cahya Mata Sarawak Bhd

Postby winston » Fri Sep 02, 2016 12:44 pm

not vested

Recovery en route
Maintain BUY

CMS’ 1H16 core net profit was actually slightly above expectations due to higher forex losses from OMS.

We expect 2H16 earnings to be stronger

HoH as earnings normalise. Going forward, its core building material supply business would benefit from the Pan Borneo Sarawak Highway construction, which would drive its forward earnings growth.

Meanwhile, OMS and Sacofa could provide upside to earnings. Our earnings forecasts are unchanged.

Maintain BUY with a SOP-based TP of MYR4.20. 2Q16 results were slightly above expectations

CMS’ subsequent quarters headline earnings would normalize given:
i) minor hedging loss from OMS as it has closed most of its hedging positions in 2Q16 and
ii) minimal unrealized forex impact from its MYR denominated payables.

OMS’ principal bankers have also agreed on the restructuring and refinancing for its loan. This could be finalized in 4Q16
pending fulfillment of all condition precedents and would alleviate default concern.


Positive outlook

Construction works for Pan Borneo is expected to start in October 2016.

As such, construction works recognition would start from 2017 onwards.

Going forward, CMS’ core segments of cement, construction materials and construction will drive earnings growth.

Earnings upside could come from:
i) OMS, if ferrosilicon price recovers and
ii) Sacofa, if it wins telco infrastructure development projects.

Source: Maybank

https://factsetpdf.maybank-ke.com/PDF/3 ... 6f8250.pdf?
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 104142
Joined: Wed May 07, 2008 9:28 am

Re: Cahya Mata Sarawak Bhd

Postby winston » Fri Dec 02, 2016 9:58 am

not vested

Cahya Mata Sarawak (CMS MK)

by Chew Hann Wong

Share Price: MYR3.77
Target Price: MYR4.20
Recommendation: Buy

Brighter spark in FY17

With OMS having completed its restructuring and refinancing of its loan, it can focus on ramping up its remaining 10 furnaces which it targets for full-production by April 2017.

Construction works for the Pan Borneo Sarawak Highway have also begun and we do expect an acceleration of works recognition from 2H17 onwards.

CMS’ construction materials supply business remains a beneficiary of the Pan Borneo construction.

Maintain BUY with an unchanged SOP-based TP of MYR4.20.

Source: Kim Eng
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 104142
Joined: Wed May 07, 2008 9:28 am

Re: Cahya Mata Sarawak Bhd

Postby winston » Mon May 01, 2017 6:13 pm

not vested

Cahya Mata associate's manganese alloy smelting plant to reach full output in Q3

BY JACK WONG

The two-phase development for OM Materials smelting plant is estimated at US$458mil. The OM Material’s phase one smelting facility, which was completed in 2015, started with the production of ferrosilicon.

However, the global ferroalloys market during the year had experienced a sharp slowdown due to excessive production and inventory.

This prompted the plant to shut down its two furnaces to facilitate reconfiguration of the product-mix, adding manganese alloys to its production capability.


By end-2016, seven ferrosilicon furnaces and one manganese furnace were in operation.


OM Holdings Ltd (OMH) has a 75% stake in OM Materials, in a recent update. CMS owns the remaining 25% equity in the joint-venture (JV) company.


Source: The Star

http://www.thestar.com.my/business/busi ... eam-ahead/
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 104142
Joined: Wed May 07, 2008 9:28 am

Re: Cahya Mata Sarawak Bhd

Postby winston » Thu May 18, 2017 11:31 am

not vested

Cahya Mata Sarawak (CMS MK)
by Chew Hann Wong

Share Price: MYR4.30
Target Price: MYR4.50
Recommendation: Hold

Better quarters ahead

Stripping out a MYR7m unrealized forex loss from OMS, 1Q17 core earnings of MYR30m met 13% of our FY17 forecast.

We lower our FY17-19 earnings forecasts by 4%-5% factoring in the slower-than-expected progress of the Pan Borneo Sarawak Highway construction and lower contribution from the road maintenance division.

Our revised SOP-based TP is MYR4.50 (-4%).

CMS is now a HOLD due to a smaller upside potential to our 12M target with much of the improving outlook priced in for now.

Source: Kim Eng
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 104142
Joined: Wed May 07, 2008 9:28 am

Re: Cahya Mata Sarawak Bhd

Postby winston » Wed Dec 27, 2017 7:18 pm

not vested

CAHYA MATA SARAWAK BHD

Buy
Target price: RM4.50

MAYBANK IB Research said it is positive on the six-month extension for Cahya Mata Sarawak Bhd’s (CMSB) state road maintenance concession in Sarawak, as it would help to address the earnings overhang, especially with the concession ending on Dec 31, 2017.

The rationale for the extension is to facilitate negotiations and to finalise terms for a renewal of a long-term agreement, and thus Maybank said it did not discount the possibility of CMS securing a new longer-term concession on renewed terms once the details had been ironed out.

CMSB’s wholly-owned subsidiary CMS Roads Sdn Bhd has on Dec 5, 2017 accepted a letter from the government of Sarawak for the extension of its current state road maintenance concession over a period of six months starting Jan 1 to June 30, 2018.

The extension will be based on existing terms with a contract sum of about RM88mil for the six-month period.

Recall, CMSB was awarded a 15-year concession to maintain and manage 5,800 km of state roads in Sarawak that will expire on Dec 31, 2017.

With the six-month extension being on the existing terms, Maybank has maintained its earnings forecasts and sum-of-part-based target price of RM4.50.

Source: Maybank IB Research
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 104142
Joined: Wed May 07, 2008 9:28 am

Next

Return to A to D

Who is online

Users browsing this forum: No registered users and 1 guest

cron