Cahya Mata Sarawak Bhd

Re: Cahya Mata Sarawak Bhd

Postby winston » Tue Feb 20, 2018 8:05 am

not vested

Another well-connected political counter is Cahya Mata Sarawak Bhd (CMS).

CMS is one of the key local participants in Sarawak Corridor of Renewable Energy development and the RM1.36bil Pan-Borneo Highway project, in addition to its existing businesses with the state government.

On a year-to-date basis, the stock is up 9.49% or 37 sen at its last price of RM4.27.

CMS is involved in cement manufacturing, construction, road maintenance and property development, among others.

Recently, CMS’ cash position experienced a growth of 1,096.9% to a net cash position of RM161.09mil.

The sudden jump in net cash was primarily because of the proceeds from its RM500mil Islamic medium-term notes. The five-year notes mark CMS’s first sukuk issuance.

Source: The Star
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Re: Cahya Mata Sarawak Bhd

Postby winston » Tue Feb 27, 2018 11:37 am

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Looking at a better 2018

Maintain BUY. Cahya Mata Sarawak’s (CMS) earnings recovery will continue in FY18 and could surpass FY15’s RM248m mark.

We expect the core divisions - cement, construction materials and road maintenance - to remain resilient underpinned by:-
1) building materials demand from Pan Borneo project,
2) contribution from Pan Borneo construction packages, and
3) additional ad-hoc infrastructure projects from the government ahead of general election (GE14).

Furthermore, we also expect contribution from JVs and Associates to the group’s bottomline
to increase further, led by OM Sarawak, which has turned profitable since 3QFY17.

After adjusting our earnings and rolling over our SOP-based target price to end-FY18, we raised our TP to RM5.00. Our TP implies 20x FY18F PE and 2.0x P/B.

Source: DBS

https://researchwise.dbsvresearch.com/R ... VyaWRAQA==
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Re: Cahya Mata Sarawak Bhd

Postby winston » Tue Mar 13, 2018 2:38 pm

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CAHYA MATA SARAWAK BHD

Buy
Target Price: RM5.20

UOB Kay Hian Malaysia Research has revised up its 2018 earnings per share for Cahya Mata Sarawak Bhd by 15% to RM314mil, which is 17% above consensus forecast.

The research house said there could be a significant upside to its forecast, which conservatively assumes a lower base case for earnings from OM Holdings (OMH) and the Pan Borneo Highway (PBH)-related earnings stream.

UOB Kay Hian said it expects Cahya Mata’s 25% JV in OM Sarawak’s (OMS) net profit to reach RM52.1mil in 2018 after posting a narrowed year-on-yea (y-o-y) loss last year, mainly due to non-cash flow forex-related impact.

OMH’s Q4’17 results were particularly galvanising, with core earnings before forex impact at US$11.1mil.

Based on OMH’s filings, sales volume at OMS improved tremendously with ferrosilicon sales for 2017 increasing by 38% y-o-y to 174,540 tonnes while manganese sales improve tremendously from 876 tonnes in 2016 to 173,911 tonnes in 2017.

UOB Kay Hian is of the view that the average selling price (ASP) is still stable at US$1,600 to US$1,800 per tonne and all 15 furnaces are running at full capacity.

It estimated that Cahya Mata’s 40% stake in Malaysian Phosphate Additives Sarawak (MPAS), which will be commissioned by second half of next year, will enhance shareholder value by 10%.

Just like in the case of OMS, the heavily energy dependent MPAS will derive much of its value by tapping into Sarawak’s cheap hydro electric supply.

UOB Kay Hian expects strong earnings in 2018 by Cahya Mata.

This will be predominantly driven by a significant turnaround at OMS as well as an improvement in earnings across other business segments.

It added that Cahya Mata’s 2018 earnings could easily beat consensus net profit target of RM272mil, given that 2017’s core profit was already at RM262mil and factoring in the company’s conservative assumption of OMS’ net profit contribution of above RM50mil in 2018 (based on a well below market ASP of US$1,200 per tonne) versus a RM28mil loss in 2017.

As such, UOB Kay Hian said it has upgraded Cahya Mata to a “buy” call with a higher target price of RM5.20 (previously RM4.30) following a 15% earnings forecast adjustment for 2018.

Source: UOBKH
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Re: Cahya Mata Sarawak Bhd

Postby winston » Wed May 16, 2018 2:50 pm

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Cahya Mata Sarawak rises as much as 4.68% following surge in 1Q earnings

by Emir Zainul

May 16, 2018

KUALA LUMPUR (May 16): Shares of Sarawak state infrastructure facilitator Cahya Mata Sarawak Bhd (CMSB) rose as much as 4.68% this morning, after its first quarter net profit increased 51% year-on-year.

Yesterday, CMSB said its net profit for the first quarter ended March 31, 2018 (1QFY18) surge 51% to RM38.98 million, from RM25.86 million a year ago.

The improvement was largely due to a turnaround in its 25%-associate OM Materials (Sarawak) Sdn Bhd, which operates a ferrosilicon and manganese alloy smelting plant in the Samalaju Industrial Park in Sarawak, it said in its filing with the local bourse.

The earnings corresponded with 13.5% of MIDF Research's full year forecast, and 13.8% of analysts consensus'.

MIDF Research analyst Fadhli Dzulkifly wrote in a note today, however, that the results were dragged by the decrease in profit before tax (PBT) of CMSB's cement segment and property segment, as development is still taking place in Sarawak.

Nevertheless, he maintains the earnings' forecast for 2018 and 2019.

"Our earnings forecasts lagged expectations, due to slower progress billings from Pan Borneo Highway and slower order for aggregates," Fadhli said.

"It was quoted from the news that Sarawak’s Pan Borneo segment will continue, hence it is a good sign that recovery is expected in upcoming quarters, especially for the cement and construction materials segment. This is because demand for aggregates would increase incrementally," Fadhli added.

MIDF has maintained its 'Buy' recommendation for CMSB, with an unchanged target price of RM4.62 per share.

Fadhli estimates sentiments for construction companies would be negative, pending announcements for big-ticket projects.

"Thus, we believe that the steep selling in CMSB’s shares, suppressing its share price, unveils the opportunity to increase exposure," he concluded.

Source: The Edge

http://www.theedgemarkets.com/article/c ... q-earnings
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Re: Cahya Mata Sarawak Bhd

Postby winston » Sun May 20, 2018 9:45 am

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RHB maintains Buy on Cahya Mata Sarawak following post-election selloff

16 May 2018

KUALA LUMPUR: RHB Investment Research believes the post-election sell-off on Cahya Mata Sarawak is temporary, as its traditional businesses are backed by its expertise and heavy investments.

The research house maintained its buy call on the counter but cut its target price to RM4.57 from RM4.96.

Cahya Mata Sarawak's 1Q18 core net profit of RM39mil came in broadly in line with RHB's expectaions.

"Revenue grew 15.3%,
mainly driven by higher contributions from CMS’ construction & road maintenance, construction materials & trading, and cement divisions.

"Net profit grew 50.7%, mainly from associate OM Materials Sarawak’s (OMS) improved performance, but was offset by lower earnings from the group’s cement wing due to higher repair costs."

RHB maintains its F18-20F earnings as it expects stronger 2H18 net profits due to a recovery in cement demand especially from higher progress at the Pan Borneo Highway (Sarawak) project.

However, it lowered its sum-of-parts-based target price to RM4.57 from RM4.96 to impute a lower 16x price-earnings from 20x previously, to factor in the risk of a potential delay in the project.

Source: The Star

Read more at https://www.thestar.com.my/business/bus ... y3SdWBm.99
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Re: Cahya Mata Sarawak Bhd

Postby winston » Tue May 22, 2018 8:52 am

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Cahya Mata Sarawak (CMS MK)
Temporary Weakness; Expect Strong Earnings Ahead

CMS’ 53% share price plunge provides an opportunity to accumulate.

The weakness is temporary as investors reacted negatively to calls to reopen bribery cases related to controlling shareholder Taib Mahmud, and the new government’s review of mega projects as well as the renewal of road maintenance concessions.

Maintain BUY with a lower target price of RM3.50 which implies 12x 2018F PE.

Source: UOBKH

https://research.uobkayhian.com/content ... 0ef584359f
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Re: Cahya Mata Sarawak Bhd

Postby winston » Tue Jun 19, 2018 9:17 am

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Cahya Mata Sarawak (CMS MK)
From Strength To Strength

Our recent meeting with CMS reaffirms our positive views about the company.

Amid concerns of political risk which we think are overblown, its earnings outlook remains
bright with OM Sarawak expected to turn around significantly in 2018.

Concession on state road maintenance has been extended for another year while construction of the MPAS plant is slated to commence in Jul 18.

Maintain BUY and target price of RM4.00 which implies 13.6x PE based on 2019F EPS.

Source: UOBKH

https://research.uobkayhian.com/content ... ba5bf770ec
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Re: Cahya Mata Sarawak Bhd

Postby winston » Fri Aug 03, 2018 9:23 am

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Outlook Remains Promising

CMS’ associate has been seeing strong interest from investors and the outlook for its subsidiary OMS remains bright with global demand-supply dynamics remaining favourable.

We expect OMS to turn around significantly in 2018 (from loss-making in 2017) and become one of the biggest contributors to CMS’ earnings.

Maintain BUY and target price of RM4.00 which implies 13.6x PE based on 2019F EPS.

Maintain BUY and target price of RM4.00 based on a 25% holding company discount to our SOTP valuation, which implies 13.6x PE based on 2019F EPS.

We also imputed a 23sen “option value” for Malaysian Phosphate Additives (Sarawak) (MPAS) (assumption: 50% success rate, RM1.4b investment cost) from a NPV of RM490.1m based on CMS’ 40% stake in MPAS.

CMS currently trades at a forward PE of 10x. Share price has fallen 13% from its recent high and with the strong fundamentals, we expect the PE to trend closer to pre-general election levels.


Source: UOBKH

https://research.uobkayhian.com/content ... adfae24854
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Re: Cahya Mata Sarawak Bhd

Postby winston » Thu Aug 23, 2018 9:35 am

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Positive Outlook Remains

We reiterate our positive view on CMS as we expect the upcoming 2Q18 results to be strong, underpinned by a major turnaround at OMS (largely attributable to sustainable ASP and higher utilisation rate).

We also think that the construction of THE Pan Borneo Highway should gradually help boost CMS’s earnings and construction of MPAS plant should provide a near-term catalyst for the company.

Maintain BUY.

Target price of RM4.00 implies 13.6x PE on 2019F EPS.

Source: UOBKH

https://research.uobkayhian.com/content ... 61e8a9b787
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Re: Cahya Mata Sarawak Bhd

Postby winston » Mon Aug 27, 2018 10:26 am

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Within expectations

1H18 met expectations

Core businesses remain resilient supported by Pan Borneo Highway project

OM Sarawak continues to deliver with all 16 furnaces now up and running

Maintain BUY with SOP-based TP of RM4.00

Source: DBS

https://researchwise.dbsvresearch.com/R ... VyaWRAQA==
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