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

CMS Roads Puts Sarawak on the Global Map for Road Excellence with International Roads Federation Awards Win

CMS Roads Puts Sarawak on the Global Map for Road Excellence with International Roads Federation Awards Win

Kuching (Sarawak), 6 December 2019 –CMS Roads Sdn Bhd, a wholly-owned subsidiary of Cahya Mata Sarawak Berhad (CMSB), was recently among just 12 elite road industry companies from around the world to be recognised by The International Road Federation (IRF) at their prestigious annual Gala Awards Dinner in Las Vegas (Nevada – USA).

Speaking about the award, CMSB’s Group Managing Director, Y Bhg Dato Isaac Lugun said, “This is the big one for the road industry and I simply cannot upsell the achievement enough. There is no bigger award in the industry, and we won outright in the category of ‘QUALITY MANAGEMENT – LONG TERM MANAGEMENT AND MAINTENANCE’, for our excellence in maintaining and developing State roads in Sarawak.

“The State Government’s foresight and vision to implement all those years ago a Performance Based Contracts (PBC) system for road development and maintenance was at the time revolutionary. It meant that contractors and concessionaires were accountable for their work and their response times in fixing any damages caused by rains, floods, tree falling or just wear-and-tear. In fact, our average response time of under one-hour (58.89 minutes to be precise) to be onsite was 30% to 40% faster than the accepted global standard. This again hails the State Government for introducing PBC’s which ultimately holds the roads concessionaires accountable and responsible. It also shows that our CMS Roads are the best Roads team in the State, highly trained, completely dedicated and have an experience level that is second to none.”

CMS Roads has over the years spared no expense in training staff, recruiting the best people, developing cutting edge innovations in R&D and purchasing state-of-the-art equipment, as can be noted by the statement by International Roads Federation Chairman, Abdullah Al-Mogbel who said, “”This year, the IRF honors 12 projects from around the world, each leading the way in innovation across major road & highway disciplines. The selection was made by an international panel of senior road development specialists. As an industry, we understand the importance of setting a long-term agenda for our research activities and capital investments. By promoting innovations and the successes in our industry, we can provide a forward-looking road map for others to follow”.

“This year has been a real year of recognition for CMS. Never in the history of CMS have we picked up so many prestigious globally recognised and globally coveted awards. BrandLaureate – Conglomerate Award 2019, Gold at the 11th Global CSR Summit Awards, retaining Our FTSE4Good Rating and now this ‘International Roads Federation Quality Management – Long Term Management and Maintenance’. I am so proud of everyone at CMS and every division” concluded Dato Isaac.

Financial_Construction Materials & Trading

Cahya Mata Sarawak Berhad’s Financial Performance For The First Nine Months Of 2019

Kuching (Sarawak), 26 November 2019 – Cahya Mata Sarawak Berhad (CMSB – 2852) is pleased to announce its financial performance for the first nine months of 2019 (PE2019). The Group reported a total revenue of RM1.28 billion for PE2019, an increase by 6% in comparison to the preceding year’s corresponding period’s (PE2018) revenue of RM1.22 billion. Its pre-tax profit (PBT) of RM230.85 million for PE2019 was, however, lower by 20% than PE2018’s PBT of RM289.25 million.

The Group’s profit after tax and non-controlling interests (PATNCI) of RM154.93 million forPE2019 was also lower by 26% than PE2018’s PATNCI of RM208.62 million. Earnings per share (EPS) stood at 14.44 sen versus 19.45 sen reported for the corresponding nine-month period of last year.
The lower profit reported during this period was mainly attributed to weaker profits reported by the Group’s associate company, OM Materials (Sarawak) Sdn Bhd, due to the current depressed commodity market. In addition, CMSB’s Cement, Construction & Road Maintenance and Property Development Divisions have also reported lower profits during the first nine months of this year.

The Group’s Cement Division reported a 7% lower PBT of RM65.52 million in PE2019 compared to PE2018’s PBT of RM70.37 million, despite 10% improvement in its revenue. The lower PBT was attributable to higher imported clinker cost, which has increased due to the spike in global demand being driven by the reduction of clinker production in China because of environmental concerns and strong regional demand especially from Bangladesh and the Philippines, as well as higher coal cost.

The Construction Materials & Trading Division registered a strong PBT of RM63.59 million, an increase by 34% in comparison to PE2018’s PBT of RM47.39 million. The higher PBT is mainly attributable to the 19% higher revenue and a reversal of provision of RM9 million. Even without the reversal of provision, the Division’s PBT of RM54.59 million for PE2019 would have been 15% stronger than the corresponding nine-month period of last year.

The Construction & Road Maintenance Division reported a PBT of RM52.75 million for PE2019, 21% lower than PE2018’s PBT of RM66.51 million. This was due to the Division’s lower year-on-year revenue by 7%, mainly due to lower construction revenue resulting from completion of works and the expiry of the Federal road maintenance contract on 31 August 2018. Furthermore, a one-off item amounting to RM3.51 million was recognised in PE2018, in the form of arrears received, due to which the Division reported 2% lower gross profit margin in PE2019.

The Group’s Property Development Division reported a PBT of RM26.35 million for PE2019, lower than PE2018’s PBT of RM29.04 million, reflecting the current softening property market. This performance by the Division was attributable to the profit recognition from a land sale, steady ongoing sales of condominium and apartments as well as higher rental income from unsold apartments in Samalaju.

From its associates, the Group recorded a share of profit of RM55.80 million in PE2019, lower by 44% than PE2018’s profit of RM99.20 million. This was mainly due to the significantly lower contribution by OM Materials (Sarawak) Sdn Bhd, CMSB’s 25%-owned associate company. The lower profit by OM (Sarawak) was due to the recent weak commodity prices and the ongoing global trade-war which has been impacting the entire industry.

Commenting on the results, CMSB Group Managing Director, Dato Isaac Lugun, said: “The weaker result for the first nine months of 2019 is mainly attributable to the performance of our associate company OM Materials (Sarawak) as well as our traditional core businesses. For OM Material (Sarawak), although its prospects in the immediate-term remain challenging due to macro-economic factors, the Group remains confident on its longer-term prospects due to its position in the first quartile of the global production cost curve and its strong global presence. Once the market rebounds, as forecasted from second half of 2020 onwards, we are confident that OM Materials (Sarawak) will again post stellar financial performance as it did in 2018. The Group is also confident on continuing growth from its other associate companies including SACOFA Sdn Bhd, KKB Engineering Berhad and Kenanga Investment Bank Berhad which 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 counter-balance each other and in the long-term to equally contribute to double the Group’s earnings.”

On our traditional core businesses, despite the current challenging business environment, we expect their future growth 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 budget for 2020, RM6.60 billion is allocated for development and a further RM21.67 billion of State’s fund has been set aside for the implementation of major infrastructure projects including the Coastal Road and Second Trunk Road, tenders for which have started being awarded, the Water Grid and Electricity projects, the State’s push for rural development and lastly for telecommunication structures. This ensures that the State will be a pocket of increased construction activity for the next few years and is expected to have a positive spill-over impact on our traditional core businesses.”

“CMSB will continue to maintain its strong growth potential and will remain resilient in spite of certain headwinds we foresee and are ready for. The Group is well positioned to benefit in all key economic drivers in Sarawak and is supported by its healthy balance sheet and its three-pronged growth strategy. Specifically, this strategy calls for CMSB to: firstly, reposition and fortify all traditional core businesses, secondly, to fully implement and grow the strategic businesses and, lastly, to reposition and strengthen the CMS brand.” added Dato Isaac Lugun.

CMSB’s Dato Isaac Lugun Dedicates Huge Brandlaureate Win to Company’s Employees

Kuching (Sarawak) November 5, 2019 – Cahya Mata Sarawak Berhad (CMSB) this week celebrated winning the much coveted and highly regarded ‘BrandLaureate – Conglomerate Award 2019’. In picking-up the prestigious accolade, CMSB not only continues to surpass its mantra of being ‘The Pride of Sarawak’ but is also rapidly forging a new mantra for itself and that new mantra is that of becoming one of the State’s ‘Most Admired Companies’.

The World Brands Foundation presented, ‘The BrandLaureate World Best Brands Awards 2019 – Conglomerate’ to CMSB’s Group Managing Director, Y Bhg Dato Isaac Lugun at an exclusive black-tie event at the Shangri-La Hotel, Singapore on 31 October 2019. Dato Isaac said, “The company has worked tirelessly on delivering absolute excellence to all of our stakeholders, whether they are our customers, partners, employees or even the communities in which we operate. It is this pursuit of excellence that sees Cahya Mata Sarawak Berhad receiving this award and being in the company of such esteemed, iconic and global brands that are also represented here tonight.”

‘The BrandLaureate – Conglomerate Award 2019’ is based on seven strict and stringent criteria namely; (1) Strength and Performance of the brand; (2) Innovation in product development and relevance of products; (3) Engagement factor of the brand with its customers; (4) Ability to influence the industry with its expertise and know-how; (5) Ability to influence and impact communities with its products and services; (6) The brand is respected by its peers and emulated on its initiatives and (7) Contributions to the industry, community and development of the country.

“This year alone, we have won a global CSR award, retained our FTSE4Good standing and now, we add the BrandLaureate to our list of accolades. These awards are all true testaments to the commitment and dedication of all Cahya Mata Sarawak’s employees, and it is my honour to collect this award tonight for them, in recognition of their efforts,” concluded Dato Isaac.

Grand Prize Winner

“My Home My Community” At Bandar Samariang

Kuching (Sarawak), 29 October 2019 – “My Home My Community” at Bandar Samariang held at Mydin Mall Samariang last Saturday was a huge success with an estimated 5,000 visitors attending the event. This community event was jointly organised by Projek Bandar Samariang Sdn Bhd, a wholly-owned subsidiary of Cahya Mata Sarawak Berhad and CATS FM.

The fun-filled day started with a Zumba session inside the mall – the instructor and members from Zumba Fitness led the crowd with fun moves and upbeat music to get them going.

A colouring contest was also held where schools in and around Bandar Samariang sent their most talented students to participate. All the participants were given goodie bags while the top three winners each brought home a trophy and hamper.

A blood donation campaign was also held where all successful donors received a 5 kg bag of rice each as a token of appreciation.

Project Bandar Samariang also took this opportunity to donate two water dispensers to SMK Bandar Samariang and one unit of 43” TV to SK Bandar Samariang.

In the evening, visitors were treated to a KONSERT CATS Day Out, starting from 7pm until midnight with various local celebrities such as Dayang Nurfaizah, Hael Husaini and many more, belting out their popular songs to entertain the crowd.

Throughout the event, many lucky draw winners were announced with the grand prize being a 49” Samsung TV.

Commenting on the event, Cahya Mata Sarawak’s Group Managing Director, Dato Isaac Lugun said, “We are not just building a township. Our objective is also to build a vibrant and sustainable community”.

Projek Bandar Samariang is the anchor developer at Bandar Samariang. Their latest property package – Alam Impian consists of single-storey terrace, double-storey terrace and single-storey semi-detached units, with price ranging from RM268,888 to RM382,888. Units are available for booking.

For more information on Projek Bandar Samariang’s property and promotion, kindly contact 019 8581666 (Aaron), 012 8220557 (Alex), 012 8085055 (Charlotte), 012 8856685 (Cherrie), 012 8288119 (Melissa) or 012 9311887 (Tisa).

dato_isaac

CMSB to Undertake Strategic Restructuring

Kuching (Sarawak), 18 October 2019 – Cahya Mata Sarawak Berhad (CMSB) today announced a strategic restructuring at Board level which will allow Y Bhg Datuk Syed Ahmad Alwee Alsree to retire after serving the Group for more than 15 years.

Over the last 12 months, in preparation for the strategic restructuring, CMSB has implemented a planned, measured and robust succession plan. The restructuring allows Datuk Syed to relinquish all his roles at CMSB.

Explaining the move, CMSB’s Chairman, Y Bhg Tan Sri Abdul Rashid Bin Abdul Manaf, said; “Datuk Syed Ahmad has been a loyal and faithful servant of CMSB for over a decade-and-a-half. His contributions to the development and growth of CMSB are immeasurable, as is our thanks and appreciation to him.”

Y Bhg Datuk Syed Ahmad Alwee Alsree, said; “My time with CMSB has been an amazing journey. I have seen the company grow by leaps-and-bounds, from 2004 when I joined as the Group General Manager of HR, through my time as Deputy Group Managing Director and then ultimately as Group Executive Director. It gives me endless pride to know that I played a role in CMSB reaching status it now holds. However, after 15 years, it is time for a new challenge and this restructuring delivers that opportunity.

The company’s robust succession planning will see the highly experienced 23-year CMSB veteran Y Bhg Dato Isaac Lugun, take the helm as Group Managing Director.