cahya mata

 
 

Sarawak’s mega projects to boost state’s construction outlook in 2019

KUCHING: The pending implementation of mega projects, especially in Sarawak, will likely provide a boost on the state’s construction outlook next year, the research arm of MIDF Amanah Investment Bank Bhd (MIDF Research) projected in its sector update. MIDF Research expected construction works mainly for MRT2, LRT3 and Pan Borneo Highway (PBH) to pick up […]


Positive on CMS’ ability to grow revenue in most divisions

KUCHING: Cahya Mata Sarawak Bhd’s (CMS) ability to grow revenue in most divisions denotes positive tone on production demand and construction progress, analysts say. According to CMS, for the first nine months of 2018 (9M18), the group reported a total revenue of RM1.22 billion, an increase of 21 per cent in comparison to the preceding […]


KLCI drifts lower as Public Bank, Tenaga drag

market repor

KUALA LUMPUR (Nov 15): The FBM KLCI drifted lower at mid-morning today, as losses at Public Bank and Tenaga Nasional kept the benchmark index from advancing. At 10am, the FBM KLCI was down 1.29 points to 1,687.12. Gainers led losers by 258 to 202, while 255 counters traded unchanged. Volume was 455.31 million shares valued at RM243.93 million. The top losers included Fraser & Neave Holdings Bhd, British American Tobacco (M) Bhd, Batu Kawan Bhd, Daibochi Bhd, Public Bank Bhd, Tenaga Nasional Bhd, Cahya Mata Sarawak Bhd, Nestle (M) BhdRead More


CMS achieves milestone with launch of eco-friendly cement product

KUCHING: Cahya Mata Sarawak Berhad (CMS), the state’s leading infrastructure facilitator, announced that its cement division had achieved another major milestone with the official launch of its new eco-friendly product, the Portland Limestone Cement (PLC). Officiating the launch was CMS Cement Division head Suhadi Sulaiman accompanied by other senior officials from University Malaysia Sarawak (Unimas), […]


PAM Contract 2018 roadshow on November 17

KUCHING: After 12 years being the prime standard form of contract in the Malaysian construction industry, Pertubuhan Akitek Malaysia (PAM) launched the new PAM Contract 2018 on April 2018. The latest iteration of the contract covers the rights and duties of employers and contracts, matters materially affecting the regular progress of works, certificate of extension […]


Implementation of national fibre plan to benefit Sacofa

KUCHING: The implementation of the National Fibre Connectivity Plan (NFCP) next year will benefit companies such as Cahya Mata Sarawak Bhd’s 50 per cent-owned subsidiary Sacofa Sdn Bhd (Sacofa). As revealed in the federal Budget 2019, the government will launch the NFCP in 2019 with an allocation of RM1 billion, to support the growth of […]


Raintree Square set to spearhead retail, leisure scene at The Isthmus

KUCHING: Raintree Square is set to spearhead the retail and leisure scene at The Isthmus, as it has been envisioned to be the centrepiece and catalyst for leisure and lifestyle in the area. Yesterday’s handing-over of 18 units of Raintree Square to UCSI Peterson Properties Sdn Bhd (UCSI), a member of UCSI Group, marked a […]


Construction sector outlook still challenging

PETALING JAYA: The outlook for the local construction sector remains challenging as the government is reviewing ongoing infrastructure projects to reduce costs by 20% to 33%, said Affin Hwang Capital.

Projects that could be affected include MRT2 and LRT3, Pan Borneo Highway and Gemas-Johor Baru double-tracking projects.

Affin Hwang Capital said MRT2 could see a 25% reduction in cost to RM24 billion from an initial estimate of RM32 billion. The MMC-Gamuda JV will be the most affected as it is the main contractor for the underground section and the project delivery partner (PDP) for the aboveground section of MRT2.

“Since the cost reductions will come from the reduction in the scope of works, we believe only the contract values will be reduced while profit margins should be preserved,” it said.

For LRT3, the construction cost could be slashed to RM9 billion to RM10 billion from an initial estimate of RM15-16 billion.

“The MRCB-George Kent JV will be most affected as the PDP for the project. We maintain our forecasts for MRCB as we believe we were conservative in our contract value assumption at RM9 billion for the LRT3 despite the previous escalation in cost. Other contractors affected include Gabungan AQRS Bhd, IJM Corp Bhd, Sunway Construction Group Bhd and WCT Holdings Bhd.”

Having said that, Affin Hwang Capital noted that there are opportunities in state government projects in Penang and Sarawak.

The Sarawak state government plans to complete the upgrading of the coastal highway and trunk roads at an estimated RM11 billion. Potential beneficiaries are Cahya Mata Sarawak Bhd and Hock Seng Lee Bhd.

Meanwhile, the Penang Transport Master Plan is pending approval by federal government authorities and public feedback collection is ongoing. The Pan Island Link 1 Highway and George Town-Bayan Lepas Airport LRT is estimated to cost RM16 billion. The Gamuda-led SRS Consortium is the PDP for the project.

Affin Hwang Capital is maintaining a “neutral” call on the construction sector due to the risk of order book reductions.

“However, we believe the concerns are reflected in current share prices. Our top buys are IJM Corp Bhd, Sunway Construction Group Bhd and HSS Engineers Bhd.”

Construction companies reported mixed results in Q2, with most seeing slower sales and progress billings due to general election uncertainties. However, construction earnings for most companies showed positive growth momentum.


CMS records significant improvement in earnings for 1H18

1

KUCHING: Cahya Mata Sarawak Bhd (CMS) recorded significant improvements for its performance for first half of 2018 (1H18), driven by its associates’ healthy numbers. Beyond this, CMS believes that its growth strategy for its strategic investments are expected to drive the next wave of growth for CMS Group. Last week, CMS reported a total revenue […]


KLCI struggles to recoup losses, stages marginal recovery

1

KUALA LUMPUR (Aug 14): The FBM KLCI struggled to recoup some lost ground in the morning session today amid some choppy trading. At 12.30pm, the FBM KLCI rose 0.3 points to 1,783.64. The index had earlier slipped to its intra-morning low of 1,778.20. Gainers edged losers by 303 to 255, while 549 counters traded unchanged. Volume was 1.16 billion shares valued at RM987.79 million. The top gainers included ViTrox Corp Bhd, British American Tobacco (M) Bhd, Far East Holdings Bhd, Lingkaran Trans Kota Holdings Bhd, Cahya Mata Sarawak Bhd, YSPRead More