Cahya Mata seen as catalyst for infrastructure spending

“CMS is in a stronger position to reap the benefits of higher infrastructure spending, given its financial strength versus its peers in Sarawak, particularly after the pandemic. We have maintained a ‘buy’ call with a higher target price of RM2 post our earnings adjustment, ’’ UOB Kay Hian said.

PETALING JAYA: Even though Cahya Mata Sarawak Bhd’s (CMS) core net profit for the first quarter (Q1) fell by more than half, analysts believe the company should be a key catalyst for the state’s infrastructure spending.

UOB Kay Hian Research said earnings for 2020 will be impacted by Covid-19. But it expects infrastructure spending to be robust, as the Sarawak state election is due soon. The state has budgeted over RM22bil for infrastructure projects.