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CMS Receives Silver And Bronze At International ARA 2019_media

CMS Receives Silver and Bronze at 2019 Australasia Reporting Awards

Kuching (Sarawak), Friday, 28 June 2019 – Cahya Mata Sarawak (CMS) recently received silver for their distinguished achievement in Sustainability Reporting and bronze for Annual Reporting at the 2019 Annual Australasian Reporting Awards (ARA) held in Melbourne, Australia. These reports were benchmarked against ARA criteria which are based on world best practice.

Speaking about the awards, Dato Isaac Lugun, Group Chief Executive Officer – Corporate said, “We are delighted to know that the quality of both our sustainability and annual reports stand on par with world best practice.”

“We take great pride in our Annual and Sustainability Reports as we believe it is one of the best ways to communicate with our stakeholders.  The reports demonstrate our commitment to good governance, transparency, compliance and ethics. Recognition like these are what makes CMS an admired company.”

The ARA was first founded in the 1950s by a group of business leaders who were keen to establish awards for excellence in preparing annual reports, constantly improving the standards of financial reporting and communicating with stakeholders. These awards are now known as the ARA and the recipient criteria entails an open willing attitude, attention to detail and accuracy, a sensitivity and responsiveness to stakeholders, a willingness to put in the effort to communicate effectively and a commitment to achieving and improving upon standards.

These awards are in addition to other similar recognitions achieved by CMS in Malaysia. CMS is the only Sarawak public-listed company and one out of 56 companies in Malaysia to be made a constituent of the FTSE4Good Bursa Malaysia Index, a testament to its strong sustainability practice. For its good track record of corporate disclosure, the Group has also qualified for Bursa Malaysia’s Green Lane Policy.

CMS Cement Pending plant

Cement Prices to Normalise Post Pen. Malaysia Cement Price Wars

Kuching (Sarawak), Sunday, 23 June 2019 – Cahya Mata Sarawak Berhad (CMSB – 2852) CMS Cement Industries Sdn Bhd (CMSCI), swiftly moved to welcome the request by YB Lim Guan Eng, Finance Minister of Malaysia to probe the difference in cement prices between East Malaysia and West Malaysia.

En. Suhadi Sulaiman, CEO of CMSCI said, “We welcome the enquiry for two reasons. Firstly, it will show that the disparity in prices is purely due to the recent aggressive price war which led to industry mergers and acquisitions in Pen. Malaysia. Secondly, an enquiry of this nature will also serve-to-show once and for all that Sarawak is not and never has been a cement monopoly. Other industry players are welcome to set-up-shop but choose not to venture into Sarawak because the initial start-up costs for development of infrastructure and haulage make it non-viable. CMSCI has been able to offset and spread these operations costs year-in-year-out by being in operation for over 40 years.”

“CMSCI will cooperate openly and transparently with any enquiry because any enquiry will show that we operate at the highest levels of business and retail integrity. The enquiry will also show that CMSCI has not raised our prices since January 2016.” We reaffirm as per our statement last week, CMSCI has no plans to increase our prices any time soon.”

Top 10 Employers of Choice 2019 Cert

Cahya Mata Sarawak Admired By Sarawakian Workforce as Among the Top 4 Preferred Employers

Kuching (Sarawak), Thursday, 13 June 2019 – JobStreet recently conducted a survey of over 1,000 Sarawakian jobseekers to find out the desirable companies to work for in 2019. The survey highlighted that Sarawakian jobseekers are interested in career development, fair compensation, company reputation and values the most. These are the same key pillars that Cahya Mata Sarawak (CMS) strives for, in their journey towards being Sarawak’s most admired company.

One of the biggest selling points in recruitment is career pathing and this is clearly evident in CMS’ ‘Management Trainee Development Programme’ where candidates are given an opportunity to rotate in different departments to gain insight and appreciation of the various job functions within the company. The second thing candidates look out for is a company that cares for the community in which it operates, something that CMS has been doing for many years. Employees at CMS have contributed 363,926 hours in the last 12 years through their ‘Doing Good’ initiatives, lending a hand and improving the lives of communities throughout Sarawak. Recently, CMS launched its new community page where nominations for communities in need of help can be submitted to the ‘Doing Good’ team for consideration under their ‘Building Sustainable Communities’ initiative.

Talking about JobStreet’s ‘Top 10 Employers of Choice’ survey, CMSB’s Head of Corporate Reputation & Communications, Jason Lee said, “I’m delighted to hear we are in the top 4 on the survey. Having a 13-year long career in CMS myself, shows that I believe in the values that CMS upholds and the number of long service awards we give out is staggering. We are given career development opportunities while being in an environment that makes you feel like you are a part of a family. Such a feeling motivates everyone to bring out their personal best which is integral in the company’s growth so we can remain on track in helping Sarawak achieving a ‘Developed State’ status by 2030.”

Group photo of the CMS Tribal Run 5.0 committee

The Highly Anticipated ‘CMS Tribal Run’ Is Back For Its 5th Season

Kuching (Sarawak), Friday, 17 May 2019 – Speaking on season five of the ‘CMS Tribal Run’, CMS Group Chief Executive Officer – Corporate, Dato Isaac Lugun said, “When we first launched this run, we wanted to raise money for charities and the local communities, in a fun and unique way. The ‘CMS Tribal Run’ has seen thousands of people take part, helping raise money, while dressed in their traditional regalia. Truly showing off Sarawak’s beauty and diversity.”

“At CMS, we are very proud that the CMS Tribal Run is among the very few, if not the only run in Sarawak where 100% of the registration fees are given to charities and the local communities” added Dato Isaac.

This year, the ‘CMS Tribal Run’ will be expanded to cover two zones, to allow even more people to do their bit, raise money and at the same time have fun.

The first flag-off will take place at the Marina Park, Miri on Sunday, 7 July 2019. The Miri event is a 5 km fun run/walk and features many attractive prizes to be won by the top 5 men and women runners.

The second flag-off will be at Wisma Mahmud, Kuching on Sunday, 4 August 2019. For the Kuching event, there will be three categories – 3 km and 5 km fun run/walk and a 10 km competitive race. The top 10 men and women finishers for the 10 km race in Kuching will each receive a prize.

Entry fees for the 3 km, 5 km fun run/walk are RM40.00 and RM45.00 respectively, while for the 10 km competitive race is RM50.00. All categories come with a specially-designed t-shirt and a finisher’s medal.

True to the theme, participants are also encouraged to “Go Tribal”, dressing creatively to showcase the cultural diversity that forms the solidarity and community that is uniquely Sarawak. Prizes will be given to the top 10 most creatively-dressed men and women runners. Apart from race and best outfit prizes, there will also be many lucky draws for grabs.

Register now at www.malaysiarunner.com. To encourage more runners to participate in the CMS Tribal Run 5.0, the closing date has been extended to Sunday, 23 June 2019.

Endorsing this event, Dato Isaac Lugun further added, “In 2018, a total of 3,288 people participated in the CMS Tribal Run 4.0, resulting in a sum of RM136,000.00 being donated to 10 local charities. The encouraging participation from the first time we opened this run to the public five years ago display the community spirit that is prevalent amongst Sarawakians and we hope to be able to attract more runners this year.”

Financials_Integrated Cement Plant Aerial

Cahya Mata Sarawak Berhad Reports Improved Earnings for 1Q 2019

Kuching (Sarawak), Wednesday, 15 May 2019 – Cahya Mata Sarawak Berhad (CMSB – 2852) is pleased to announce its financial performance for the first quarter ended 31 March 2019 (1Q 2019). The Group reported a total revenue of RM418.18 million and a pre-tax profit (PBT) of RM62.44 million for 1Q 2019. Both Revenue and PBT increased by 18% and 10%, respectively, in comparison to the preceding year’s corresponding quarter’s (1Q 2018) revenue of RM354.99 million and PBT of RM56.96 million.

Year-on-year, the Group’s profit after tax and non-controlling interests (PATNCI) of RM40.76 million for 1Q 2019 was 5% higher than RM38.98 million reported for 1Q 2018. Earnings per share (EPS) stood at 3.80 sen versus 3.63 sen from the corresponding three-month period of last year.

The improvement in the Group’s financial performance during this period was mainly due to the strong performance by its traditional core businesses, namely Cement Division, Construction Materials & Trading Division and Property Development Division.

The Group’s Cement Division reported a PBT of RM11 million for 1Q 2019, an improvement by 67% in comparison to 1Q 2018’s PBT of RM6.57 million. The improved performance was mainly due to higher revenue, as sales volume of both cement and concrete products increased by 9% and 70% respectively. During this period, the Division also sustained lower production cost for clinker due to its higher production volume as well as lower repair costs of its plant. In 1Q 2018, there was a major overhaul of the Division’s ageing clinker plant which has since improved the plant’s performance and reliability.

The Construction Materials & Trading Division also reported a strong PBT of RM20.98 million for 1Q 2019, 128% higher than the PBT of RM9.19 million for 1Q 2018. The higher PBT was attributable to 20% higher revenue, 2% higher gross profit margin and a reversal of a provision of RM9 million. Even without the reversal of provision, the Division’s PBT for 1Q 2019 of RM11.98 million would have been 30% stronger than the corresponding three-month period of last year.

The Construction & Road Maintenance Division reported a PBT of RM15.33 million in 1Q 2019, 15% lower than 1Q 2018’s PBT of RM18.13 million (excluding share of results of joint ventures), despite 17% higher revenue. This was mainly due to 4% lower overall gross profit margin as a result of cost revisions in project and higher road maintenance costs.

The Group’s Property Development Division reported a PBT of RM15.08 million in 1Q 2019 in comparison to 1Q 2018’s PBT of RM2.00 million, representing an increase by 654%. This was mainly attributable 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.

For its share of profit from associates, the Group recorded a lower share of RM13.35 million for 1Q 2019 in comparison to 1Q 2018’s share of RM36.05 million. This was due to lower contribution by most of the Group’s associates.

Commenting on the results, CMSB’s Group Chief Executive Officer – Corporate, Dato Isaac Lugun, said: “The strong performance for the first quarter of this year is in line with our projections and expectations of a full rebound once businesses and other economic factors had normalised post GE14. Our traditional core businesses, particularly our Cement Division lead the charge. Going forward, we expect the rebound to continue and to be driven by the ongoing Pan Borneo Highway project and the State government’s increased spending on infrastructure. As seen in the State’s record budget for 2019, RM9.07 billion is spent on development which in part will fund the implementation of major infrastructure projects including the Coastal Road and Second Link Road, tenders for which have started being awarded, the Water Grid and Electricity projects and the State government’s push for rural development. This ensures that the State will be a pocket of increased construction activity in Malaysia for the next few years.”

“Going forward, we are also confident on our strategic investments and particularly OM Sarawak Sdn Bhd, the Group’s second largest PATNCI contributor in 2018, and SACOFA Sdn Bhd to continue to be significant contributors. Although OM Sarawak’s prospects in the immediate-term are challenging due to the trade war between China and the US and the expected slowdown of China’s economy, the Group remains confident on its longer-term prospects due to its strong underlying fundamentals. The Group also remains positive on SACOFA as it aims to capitalise on the State’s push to fully embrace the Digital Economy with an allocation of RM2 billion for telco-infrastructure. Both OM Sarawak and SACOFA, alongside our other strategic investments in Kenanga Investment Bank Berhad and KKB Engineering Berhad, are part of our growth strategy for our strategic investments to drive the next wave of growth. The aim of this growth strategy is for our traditional core businesses and our strategic investments to equally contribute to double the Group’s earnings in the next five years.”

“CMSB will continue to maintain its strong growth potential and will remain resilient in spite of certain headwinds we foresee and are ready for. With its healthy balance sheet and diverse portfolio of businesses, the Group is well positioned to benefit in all key economic drivers in Sarawak. We expect this to be through: OM Materials (Sarawak) Sdn Bhd in the Sarawak Corridor for Renewable Energy (SCORE) initiative, SACOFA Sdn Bhd in the State’s push to fully embrace the digital economy and Cement Division, PPES Works (Sarawak) Sdn Bhd and our other construction materials supply companies in the roll-out of the Pan Borneo Highway project and other major infrastructure projects recently announced by the State government.” added Dato Isaac Lugun.

“Continually posting good and strong profits while staying true to our business ethics, transparency and absolute dedication to compliance, Cahya Mata Sarawak Berhad, is well on its way to becoming ‘Sarawak’s Most Admired Company’, the company you can trust,” concluded Dato Isaac Lugun.