Cahya Mata Sarawak posts 4.4% higher 1Q net profit of RM40.76m

OM Sarawak, a 75:25 joint venture between ASX-listed OM Holdings Ltd and Cahya Mata Sarawak Bhd, has set aside A$20mil (RM57.6mil) as capital expenditure for the construction of the sinter plant with auxilliary facilities, a laboratory, offices and canteen

KUALA LUMPUR: Cahya Mata Sarawak Bhd's (CMS) net profit for the quarter ended March 31 rose 4.4% year-on-year (y-o-y) to RM40.76mil on the back of higher contributions from the group's core businesses.

"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," said CMS group CEO, corporate, Datuk Isaac Lugun.

"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," he said.

He added that the group's strategic investments will drive the next wave of growth with OM Sarawak Sdn Bhd and Sacofa Sdn Bhd continuing to be significant contributors.

For the quarter under review, group revenue was 15.11% higher y-o-y at RM418.18mil compared to RM354.99mil in the previous corresponding quarter.

The cement division experienced pretax profit growth of 67% y-o-y to RM11mil as revenue was boosted by higher products sales volumes.

In the construction materials and trading division, pretax profit jumped 128% to RM20.98mil, mainly due to a reversal of a RM9mil provision.

The group's property development division recorded a pretax profit of RM15.08mil, a 654% jump from the same quarter last year mainly due to the proceeds from a land sale, as well as a higher number of condominiums sold and higher rental income.

Contribution from associates shrank to RM13.35mil from RM36.05mil in the previous corresponding quarter.