Cahya Mata Sarawak Bhd

[winston]

not vested

Cahya Mata to gain from construction jobs, road maintenance works

Outstanding order book currently stood at RM600mil.

RM5.6bil was allocated for Sarawak’s development expenditure, on top of RM2.50bil that was allocated for Sabah and Sarawak for public amenities,”

Commitment of expediting the Pan Borneo Highway and the Sarawak-Sabah Link Road, which the federal government estimates will cost a total of about RM20bil.

Source: The Star

https://www.thestar.com.my/business/bus ... ance-works

[winston]

not vested

Cahya Mata Sarawak (CMS MK)
Deeply discounted
Maintain tactical BUY

We maintain our tactical BUY call on CMS with a revised MYR1.48 TP (-9sen).

Excluding net cash plus ST/LT investments of 68sen/shr as at endDec 2022, the stock now trades at just 3.1x FY23E PER.

Our TP implies 0.5x FY23E P/B and 0.5x P/RNAV.

While it still needs to do more to reassure investors that governance issue (in 2021) is a one-off, its’ extremely low valuation underscores its dominant position in Sarawak which we continue
to see upside.

Our revised earnings forecasts incorporate losses expected from its phosphate ops, and small earnings contribution from Oiltools.

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/309532.pdf

[winston]

not vested

RAM Ratings raises Cahya Mata Sarawak outlook to positive

In view of the group’s improving business and financial profiles.

The company’s new phosphates manufacturing division, Cahya Mata Phosphates Industries Sdn Bhd, has started commissioning production and would transition to commercial operations by mid-2023.

"The division is anticipated to become a significant earnings contributor from fiscal 2024 and will diversify the group’s current construction-focused business profile and further strengthen its financial profile with segmental contribution potentially reaching half of the group’s earnings”.

Direct beneficiary of the rise in Sarawak’s construction activity and its sturdy foothold in Sarawak’s cement industry would directly benefit from the state’s continued focus on infrastructure development.

Anticipated modest contributions from its recently acquired businesses in drilling fluids and drilling waste management to become more meaningful over the longer term.

Source: Bernama

https://www.thestar.com.my/business/bus ... o-positive

[winston]

not vested

CMSB says RM266m contingent liability could possibly be reflected in FY2022 statements if unit's PPA deemed terminated

By Isabelle Francis

Source: theedgemalaysia.com

https://theedgemalaysia.com/node/666934

[winston]

not vested

Analysts stay positive on Cahya Mata despite 1Q results coming in below expectations

By Reyanna Ng

Source: theedgemalaysia.com

https://theedgemalaysia.com/node/668131

[winston]

not vested

MIDF Research stays firm on Cahya Mata despite termination of power supply to phosphate plant

By Sufi Muhamad

The termination has limited impact on Cahya Mata’s financials as CMPI has yet to commence commercial operations as it is still in the process of obtaining approvals and licences to begin selling.

CMPI has 10,000 drums of phosphorus in its inventory.

MIDF Research maintained a “buy” call with an unchanged TP of RM1.50 based on a forward price-earnings (PE) of eight times to its financial year 2024 forecast (FY2024F) earnings per share (EPS) of 18.7 sen.

Cahya Mata’s medium to long term outlook remained strong with the expected improvement in cement demand, especially with planned development projects including Indonesia’s upcoming new capital in Nusantara.

“It is currently building a new RM750 million clinker line at the integrated complex in Mambong, which will allow it to triple its clinker production capacity to 2.8 million tonnes annually.”

Source: theedgemalaysia.com

https://theedgemalaysia.com/node/674372

[winston]

Norges Bank emerges as substantial shareholder of Cahya Mata

By Anis Hazim

Norges Bank, which manages Norway's Government Pension Fund Global, has emerged as a substantial shareholder of Cahya Mata Sarawak Bhd (CMS) after acquiring 50.05 million shares or a 5.03% stake in the Sarawak-based cement manufacturer.

CMS recently reported a net profit of RM26.35 million in the second quarter ended June 30, 2023 (2QFY2023), a decline of 33.42% from RM39.57 million a year earlier, due to a lower share of profit of associates and bigger loss before tax by its phosphate division.

Revenue, however, increased 38.52% to RM290.52 million, from RM209.74 million driven by its oil tools division.

Source: theedgemalaysia.com

https://theedgemalaysia.com/node/682752

[winston]

not vested

Growing Mystery Over Taib Family's CMSB Shares

Source: Sarawak Report

https://www.sarawakreport.org/2023/09/g ... sb-shares/

[winston]

2Q24: Tracking in-line

Significantly undervalued; maintain BUY

CMS’ 1H24 net profit was in-line at 48% of our full-year est., but above consensus at 54%.

We tweak FY24/FY25/26E net profit forecasts by +0.1%/ -3%/+4% post house-keeping.

Rolling forward valuation to FY25E and pegging on an unchanged 10x PER (-0.5SD of LT mean), our revised TP is MYR1.60 (+22sen).

The stock remains significantly undervalued, trading at 8x FY25E PER, 0.4x P/B (BVPS of MYR3.16 @ 30 Jun 2024) and 0.4x our RNAV/shr est. (of MYR3.10).

We reiterate our tactical BUY call. TP: RM 1.60

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/401777.pdf

[winston]

not vested

On track for higher earnings delivery

Maintain BUY with an unchanged TP of MYR1.60

We maintain our BUY call on CMS with an unchanged TP of MYR1.60, pegged to 10x FY25E PER which implies 0.4x P/B (BVPS of MYR3.16 @ 30 Jun 2024) and 0.4x our RNAV/shr est. (of MYR3.38).

We make negligible changes to our earnings estimates due to house-keeping, expecting strong 29% earnings growth in FY24E with cement and Oil tools to be the drivers.

Valuation remains undemanding, now at 9.8x FY24E PER.

Further catalyst would be a favourable outcome to the impasse for its phosphate op.

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/404855.pdf