KUCHING: Cahya Mata Sarawak Bhd (CMSB) share price rose to its highest level in five years, boosted by the company buying back its own shares.
The stock inched up another 1sen to close at RM2.82 yesterday with a volume of more than 1.2million shares.
CMSB was on an uptrend since July 10, gaining 12sen last week to RM2.57. The rally continued when it surged 13sen on Monday and another 11sen on Tuesday.
The stock has gained nearly 40% from 2011’s close of RM2.09.
The company bought back 719,500 shares at prices ranging from RM2.50 to RM2.80 in the open market on July 23 and 24.
Last month, CMSB’s wholly-owned subsidiary Samalaju Industries Sdn Bhd and Malaysian Phosphate Additives Sdn Bhd signed a memorandum of understanding (MoU) on a proposal to set up a joint-venture integrated phosphate plant in Samalaju Industrial Park, Bintulu.
The proposed plant at a current estimated cost of RM850mil will have an annual production capacity of about 500,000 tonnes.
Malaysian Phosphate Additives makes various grades of food and feed phosphates. If materialised, the integrated phosphate plant would be CMSB’s second major investment in Samalaju, the first being its 20% stake in OM Material (Sarawak) Sdn Bhd, which is investing some RM1.9bil in a manganese and ferro alloy smelting plant.
CMSB’s partner in OM Sarawak is Australian listed OM Holdings Ltd (OMH). For the first quarter ended March 31, 2012, CMSB posted a group’s pre-tax profit of RM49.9mil on revenue of RM230.3mil, an improvement over RM43.1mil and RM226.4mil respectively a year ago.
The manufacturing segment contributed the bulk or RM122.8mil to the group’s revenue. Other key contributors were construction and road maintenance segment (RM40.4mil), construction materials’ segment (RM32.3mil), trading, financial services, education and others (RM26.6mil), and lodging and catering services (RM17mil).
CMSB had said earlier that with the group’s strong financial position, it would be able to invest in new business opportunities especially in Samalaju Industrial Park within Sarawak Corridor of Renewable Energy (SCORE).