Headline numbers appeared to be lower year on year, mainly due to a one-off exceptional gain in 9M14.
KUCHING: Cahya Mata Sarawak Bhd (CMS) is gaining steam in the third quarter of financial year 2015 (3Q15) after a poor start in the first halfo f the year.
According to RHB Research Institute Sdn Bhd (RHB Research), CMS’ 3Q15 net profit rose 61 per cent quarter on quarter to RM65.5 million.
“We deem the results largely in line with our forecast but marginally short of consensus, with 9M15 profit reaching 74 per cent and 70 per cent of the respective projections.
“Headline numbers appeared to be lower year on year, mainly due to a one-off exceptional gain in 9M14. We also note that there were no land sales to date vis-à-vis the RM24 million profit from land disposals in 1H14.”
Earnings from its road maintenance and materials and trading divisions rose ahead of the impending Sarawak state election by June 2016, observed RHB Research, adding that “both divisions may eventually benefit from the RM26 billion Pan Borneo Highway project.”
“Meanwhile, the weaker ringgit resulted in flattish earnings for its cement unit in 9M15. However, we expect the commissioning of its new grinding plant in Mambong, Sarawak, early next year may help to improve profitability of its cement unit in 2016.
“Also, its acquisition of a 50 per cent stake in Sacofa Sdn Bhd in Oct 2015 may see full-year earnings contribution from FY16 onwards, pending more details from management.
“Separately, more contribution is expected from its property division upon completion of certain developments plus possible gains from land sales.”