Stay abreast with the latest happenings in Cahya Mata Sarawak Berhad.

Financials_Integrated Cement Plant_media

CMSB’s pre-tax profit reported at RM231 million

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Kuching (Sarawak), Wednesday, 29 November 2017 – Cahya Mata Sarawak Berhad (CMSB – 2852), the State’s leading infrastructure facilitator, is pleased to announce its financial performance for the first nine months of 2017 (PE2017). The Group reported a pre-tax profit (PBT) of RM231.02 million for PE2017, exceeding the preceding year’s corresponding period’s (PE2016) PBT of RM160.41 million by 44%. This was largely attributable to increased efficiencies and productivity within the Cement Division, reflecting the Group’s unrelenting focus towards its operations, and to improved sales within the Property Development Division. The increase in the Group’s PBT was despite an 8% decrease in its revenue of RM1.02 billion for PE2017, in comparison to PE2016’s revenue of RM1.10 billion. The decline was mainly due to lower sales volumes in the Construction Materials & Trading and Cement Divisions. The Construction & Road Maintenance Division also reported lower revenue due to reduced federal road maintenance work and due to the completion of major projects in 2016.

Furthermore, the Group’s profit after tax and non-controlling interests (PATNCI) also increased by 121% to RM149.43 million in PE2017, from RM67.66 million in PE2016. Earnings per share stood at 13.91 sen versus 6.30 sen from the corresponding nine-month period of last year.

The main contributors towards the earnings for PE2017 were the Cement, Construction & Road Maintenance, Construction Materials & Trading and the Property Development Divisions. The Cement Division reported a PBT of RM82.16 million for PE2017, exceeding PE2016’s PBT of RM76.98 million by 7% attributable to lower handling costs, cheaper imported clinker and lower clinker production costs due to both stable production and lower coal prices. Moreover, with the commissioning of the Integrated Cement plant in Mambong, the Group’s cement sales are no longer required to be supported by imports.

The Construction & Road Maintenance Division recorded a PBT of RM55.12 million in PE2017 – a 4% decrease in comparison to PE2016’s PBT of RM57.61 million – as a result of a reduction in the road length maintained due to the construction of the Pan Borneo Highway project. The Construction Materials & Trading Division reported a PBT of RM52.14 million for PE2017, 30% lower than the PBT of RM74.65 million reported during PE2016. This was mainly attributable to lower sales due to slower implementation of Government projects during the first half of the year.

The Property Development Division reported a PBT of RM29.28 million during PE2017, an increase of 190% in comparison to PE2016’s PBT of RM10.11 million. This was mainly due to the revenue recognition of the Rivervale housing project and, additionally, improved sales of residential properties generally and the rental income from a hypermarket in Bandar Samariang.

The Group also recorded a higher share of profit of RM25.85 million in PE2017 from the share of results of its joint-ventures in comparison to PE2016’s profit contribution of RM8.04 million. The increase was mainly attributable to the excellent performances by CMS Opus Private Equity Sdn Bhd and two private equity funds.

Furthermore, CMSB recorded profit of RM12.63 million in PE2017 from the share of results of its associates, a significant improvement by 131% in comparison to PE2016’s losses of RM40.49 million. This is largely due to the Group’s 25% associate, OM Materials (Sarawak) Sdn Bhd’s improved performance. Its performance levels are expected to continue to improve as the plant is ramping up towards full production and its market sectors are observing demand growth and price improvements.

Commenting on the results, Dato’ Richard Curtis, Group Managing Director of CMSB, said: “The first nine-months of 2017 has been an important phase in terms of meeting performance against targets, despite the challenging market and operational conditions faced by our Group. These macro factors were generally the sluggish regional private and public sectors resulting in reduced demand for construction materials and related services. Despite the challenges, the Group recorded significant achievements, namely, by its Cement, Construction & Road Maintenance, Construction Materials & Trading and Property Development Divisions. Overall, the results for the first nine-months of this year are viewed positively as they provide reassurance that the Group is on track towards achieving a very much-improved performance for its FY2017 financial results as against FY2016.

“This confidence in our prospects is supported by our healthy balance sheet, our focused portfolio of core business Divisions and our prudent succession planning as CMSB ushers into a new era of leadership. We strongly view that we are well positioned to benefit from the State’s ever-growing infrastructure needs, including the RM27.0 billion Pan Borneo Highway project, which is now gathering momentum. Furthermore, the 2017-2018 growth projections for the Malaysian economy and the continued focus on infrastructure related projects and services in Sarawak in both the Federal and the State budgets, bodes well for our businesses. Looking further to the future, CMSB’s potential high-growth investments in its associate companies, including SACOFA Sdn Bhd, and OM (Sarawak) Sdn Bhd, are expected to materially transform our longer-term profits growth.

“We believe that CMSB continues to be one of the best proxy listed investments for Sarawak’s economic growth. This is consistent with the State’s promotion of energy-intensive industries under the Sarawak Corridor for Renewable Energy (SCORE) initiative, its rural transformation plans, its focus towards establishing a digital economy and the infrastructure and related services that will therefore be required across the State. These various drivers, which reflect CMSB’s business focuses, are set to propel the State’s economy and CMSB to new heights in the long term,” added Dato’ Richard Curtis.

CMS staff plant 500 mangrove saplings at Ramsar site, Kuching Wetlands National Park

Environmental Protection at Work: CMS staff plant 500 mangrove saplings at Ramsar site, Kuching Wetlands National Park

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Kuching (Sarawak), Tuesday, 21 November 2017 – Over the past weekend, 75 employee volunteers from Cahya Mata Sarawak (CMS) planted 500 mangrove saplings (Bakau Kurap species or rhizophora mucronata sp.) at the RAMSAR site, Kuching Wetlands National Park. The programme, which is part of CMS’ ‘Doing Good’ CSR programme, was organised in collaboration with the Forest Department Sarawak – the government agency that promotes the rehabilitation of the ecosystem in Kuching Wetlands.

The volunteers braved the rain and mud, and by working together collaboratively and systematically, they managed to plant all 500 saplings in just one hour. Part of the group were assigned to do nursery work where they managed to prepare 500 saplings from the mangrove propagules as part of the propagation process. This is to meet the condition set by the Forest Department whereby the number of saplings planted must be replaced with the same number of saplings prepared in their efforts to guarantee sustainability.

As well as manpower, CMS also contributed tools worth RM2,300.00, comprising rubber boots, gloves, a ladder, hoes and garbage bins for future use as part of the programme. The contribution was handed over by CMS Group Corporate Communications Manager, Ms Shirly Ann Clarke to the Forest Department representative, Mr Haazizkin. This is the second time CMS joined the mangrove planting programme and hopes to increase its involvement and value in future programmes with the Forest Department Sarawak.

The RAMSAR site is situated 15km from Kuching and approximately 5km from Damai Beach. The Kuching Wetlands National Park covers an area of 6,610 hectares in between the Sibu Laut and Salak rivers. The park is mostly comprised of a saline mangrove system that includes an extensive network of marine waterways and tidal creeks interconnecting the two major rivers that form the boundaries of the park.

Initiated in 1971 at Ramsar, Iran, the Ramsar Convention had been adopted by many countries including Malaysia in 1995. The Kuching Wetlands National Park fulfilled four out of nine criteria suitable as a Ramsar site. The four criteria include: the site is a particularly good representative example of a natural coastal mangrove system, the site supports the Proboscis Monkey (Nasalis larvatus), the site is of special value as a nursery area for the Estuarine Crocodile (Crocodylus porosus) and the site is an important spawning and nursery ground for fish and prawn species.

TPS Aerial

Tunku Putra School’s partnership with Help Education Services promises unrivalled Academic Excellence

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Kuching (Sarawak), Wednesday, 15 November 2017 – 2017 marks an important milestone for CMS’ owned international school, Tunku Putra School (TPS), as it embarks on its next journey in educational growth with the signing of a Management Agreement with HELP Education Services Sdn Bhd. HELP has been successful in running Help University which has over 9,000 students offering a plethora of study disciplines and manages two international schools in KL and Johor respectively which together have over 2,000 students. HELP has over 30 years of experience in producing top students that have secured scholarships to study in top universities around the world including Cambridge, Harvard, MIT, LSE, Imperial College and Australian National University.

Speaking about the new agreement, The Chairman of TPS, Datuk Syed Ahmad Alwee Alsree explained that this partnership is destined to position TPS ahead of other existing international schools in the State of Sarawak with the promise of delivering excellent academic performance and good quality education by capitalising on the school’s existing holistic learning approach.

Datuk Syed Ahmad Alwee Alsree had recently toured both HELP International Schools in KL and Johor and is confident that this partnership will bring invaluable benefits to the school, not least because both schools share the common principle of holistic learning. “Students at Tunku Putra School enjoy learning and are genuinely happy to come to school. Our students are articulate, confident, driven and polite. I am very proud that our students possess these traits in droves,” remarked the Chairman after speaking to an IGCSE student who is bound for Scotland to study a Foundation programme in Computer Science.

Dr. Goh Chee Leong, CEO of HELP and the newly appointed Chairman of the Tunku Putra EXCO, in his briefing to parents and staff of TPS on 10 November 2017 shared HELP’s academic success in their KL campus, strength in talent management and teacher development and their philosophy and passion in leading the education charter. “These are all strong attributes that are absolutely transferable to Tunku Putra School as it embarks on its latest chapter in transformational and holistic learning,” added Dr. Goh Chee Leong.

Interested parents are invited to attend TPS’s Open Day at its school premises on 25 November 2017, from 10.00am to 3.00pm where they can tour the campus, meet the teachers and listen to a presentation from Dr. Goh Chee Leong.

Miri Marudi Road Rehabilitation Infographic_media

Miri-Marudi Road upgrading works well ahead of schedule

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Kuching (Sarawak), Friday, 13 October 2017 – CMS Roads Sdn Bhd today confirmed that the upgrading of the 43.2km road connecting Miri to Marudi is progressing well ahead of its original 30-month schedule. By 25 September 2017, the road upgrading was scheduled to be 12.53% complete, but stands at 30.80% complete – the equivalent of 18.27% ahead of schedule.

The upgrading began on 15 September 2016, and in view of the extensive public interest in the upgrading of this road link due to its unsatisfactory condition and growing importance, CMS Roads volunteered in March 2017 to provide quarterly updates on the project’s progress.

Speaking about the third update of the upgrading, Director of CMS Roads, Dato’ Richard Curtis, commented: “We are pleased to report that notwithstanding the many challenges ranging from the road’s remote location in terms of getting materials in, weather, crop compensation issues and the need to keep the road open to users as much as possible whilst works are underway, we are many weeks ahead of schedule. In carrying out and exceeding the project targets, we have carefully considered the different type of vehicles that access the road and their impact on the road’s development and upgrading. After 12 months since the project’s commencement, the focus remains on expediently providing long-lasting upgrades to the road so it’s safe and fit-for-purpose for those who travel between Miri and Marudi.

Status updates for the project as at 25 September 2017:

  • Scheduled Physical Progress of Road Upgrading: 12.53%
  • Actual Physical Progress: 30.80%
  • Ahead of Schedule by 18.27%
  • Premix Surfacing Completed: 15.83km
  • Completed Road Base: 18.68km
  • Reinforced Concrete Pipe Culverts: 12 completed out of 21
  • Roadside Earth Drains: 8km completed (both sides of the road)
  • JKR and Lands & Survey Department assisting with outstanding land matters

CMS Roads’ next planned update on this project is scheduled for the start of 2018.

Click to read Press Release in BM or Chinese.

Miri Marudi Road Rehabilitation Infographic
CMS Kick Starts its Fifth Safety Month Campaign

CMS kick starts its Fifth Safety Month Campaign

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Kuching (Sarawak), Monday, 2 October 2017 – This year marks the 5th anniversary of CMS’ group-wide Safety Month Campaign. The campaign, which kicks off every October of the year since its inception in 2013 aims to create awareness among its employees and stakeholders on Occupational Safety & Health, as well as environmental and sustainability values.

“Safety is an attitude, a frame of mind, an awareness of our environment, our actions and activities all day; put simply, safety is a way of life at CMS and is central to all of our activities,” said CMS Group Managing Director, Dato’ Richard Curtis during the launch of the CMS Safety Month 2017 at Wisma Mahmud in Kuching, today. This year’s campaign is themed “A Better you, Today!” and carries the slogan “Your Life’s Matters!”. Witnessing the launch were DOSH Sarawak’s Assistant Director, Sadiyuk Henry Rigit, Deputy Director of PERKESO Sarawak, Dundang Udong and CMS senior management and employees.

CMS incorporated Occupational Safety and Health (OSH) performance criteria into its staff KPIs (Key Performance Indicators) from 2009 and the company has since endeavoured to ensure excellence in OSH management, group-wide.

Among the activities organised during the Safety Month are safety talks and training from DOSH, PERKESO, BOMBA, Health Department, and the Sarawak Government Hospital, private clinics, PPE suppliers and invited speakers from local companies. A compulsory site walkabout is also included in the program whereby selected employees will have the chance to visit other subsidiary companies within the CMS group to observe and input on other group of companies’ OSH practices and standards. A “Heart Run” to emphasise this year’s focus on a healthier lifestyle, will be organised to close the campaign in the final weeks of October 2017.