Cahya Mata Sarawak registers 4.6% rise in Q1 earnings

PETALING JAYA: Cahya Mata Sarawak Bhd (CMSB) saw its net profit increase 4.6% to RM40.76 million for the first quarter ended March 31, 2019 compared with RM38.98 million in the same quarter a year ago, driven by higher contribution from its core businesses, namely cement, construction materials & trading and property development.

Its revenue also soared 17.8% to RM418.18 million from RM354.99 million.

In a filing with the stock exchange, the group said cement division’s profit before tax (PBT) surged 67% to RM11 million as sales volume of both cement and concrete products increased 9% and 70% respectively.

The construction materials & trading division’s PBT more than doubled to RM20.98 million, attributable to higher revenue and gross profit margin a well as a reversal of a provision of RM9 million.

The construction & road maintenance division, however, reported a lower PBT of RM15.33 million due to lower overall gross profit margin as a result of cost revisions in project and higher road maintenance costs.

Meanwhile, the property development division’s PBT jumped more than seven times to RM15.08 million thanks to a recognition of profit of RM10.90 million from a land sale, higher number of condominium units sold and higher rental income from unsold apartments.

Going forward, CMSB’s group CEO (corporate) Datuk Isaac Lugun expects the rebound in its businesses will continue and to be driven by the ongoing Pan Borneo Highway project and the state government’s increased spending on infrastructure.

At 2.35pm, CMSB shares were trading 8 sen or 2.5% higher at RM3.27 with 161,100 shares changing hands.