Cahya Mata Sarawak Berhad

$CMSB / 2852 (CAHYA MATA SARAWAK BERHAD)
Research by MAYBANK

Cahya Mata Sarawak Bhd rose yesterday, in another attempt to break out of a consolidation channel.

$CMSB / 2852 (CAHYA MATA SARAWAK BERHAD)
Research by Maybank

$CMSB / 2852 (CAHYA MATA SARAWAK BERHAD)
Research by Maybank
BUY – TP RM 1.60

" On track for higher earnings delivery”

We maintain our BUY call on CMS with an unchanged TP of MYR1.60, pegged to 10x FY25E PER which implies 0.4x P/B (BVPS of MYR3.16 @ 30 Jun 2024) and 0.4x our RNAV/shr est. (of MYR3.38). We make negligible changes to our earnings estimates due to house-keeping, expecting strong 29% earnings growth in FY24E with cement and Oiltools to be the drivers.Valuation remains undemanding, now at 9.8x FY24E PER. Further catalyst would be a favourable outcome to the impasse for its phosphate op

Analyst:
Wong Chew Hann
wchewh@maybank-ib.com

$CMSB / 2852 (CAHYA MATA SARAWAK BERHAD)
Research by TA
Sell - TP RM1.15

"Steady Gains Amid Stormy Skies"

We maintain our Sell recommendation on the stock, with a revised SOP-derived target price of RM1.15, after incorporating a 3% ESG discount based on our 2-star rating. Additionally, we are ceasing coverage on CMSB due to reallocation of our resources and concerns over its corporate governance practices.

Analyst:
Raymond Ng Ing Yeow
raymondng@ta.com.my

$CMSB / 2852 (CAHYA MATA SARAWAK BERHAD)
Research by RHB
Buy - TP RM1.57

"Leveraging On Sarawak’s Growth; U/G To BUY"

U/G to BUY from Neutral, new MYR1.57 TP from MYR1.12, 21% upside. 2Q24’s result exceeded both our and Street’s full-year estimates. We are sanguine on the medium- to long-term prospects of the cement industry, as Cahya Mata Sarawak stands to benefit directly from the anticipated construction increase given its prominent role as Sarawak’s leading cement provider. We believe our new TP (implying 10x FY25F P/E or 1SD above the historical mean) is justified. This report marks coverage transfer to Cindy Lee.

Analyst:
Cindy Lee
cindy.chin.hui@rhbgroup.com

$CMSB / 2852 (CAHYA MATA SARAWAK BERHAD)
Research by MIDF
Buy - TP RM1.53

"Stronger Cement Demand to Drive Earnings"

• 2QFY24 core net profit tripled to RM38.0m despite weaker revenue
• Cement revenue declined -4.8%yoy to RM150.0m; PBT doubled to RM43.9m due to improved margins
• Phosphate division’s losses declined due to lower operating costs
• Maintain BUY with an upgraded TP of RM1.53

Analyst:
Royce Tan Seng Hooi
royce.tan@midf.com.my

$CMSB / 2852 (CAHYA MATA SARAWAK BERHAD)
Research by Maybank
Buy - TP RM1.60

"2Q24: Tracking in-line"

CMS’ 1H24 net profit was in-line at 48% of our full-year est., but above consensus at 54%. We tweak FY24/FY25/26E net profit forecasts by +0.1%/-3%/+4% post house-keeping. Rolling forward valuation to FY25E and pegging on an unchanged 10x PER (-0.5SD of LT mean), our revised TP is MYR1.60 (+22sen). The stock remains significantly undervalued, trading at 8x FY25E PER, 0.4x P/B (BVPS of MYR3.16 @ 30 Jun 2024) and 0.4x our RNAV/shr est. (of MYR3.10). We reiterate our tactical BUY call.

Analyst:
Wong Chew Hann
wchewh@maybank-ib.com

$CMSB / 2852 (CAHYA MATA SARAWAK BERHAD)

Titan Trading Notes For Friday [14/6/2024]:

$KLSE-KLCI had a good rebound back towards the 1610 points region with an overall positive market sentiment as our market started to rebound from yesterday's profit taking activities. Daily trading volume closed around the 5.9 billion mark, which is still pretty good here.

Main stocks that showed strong buying momentum today would be the likes of JCY, MYEG, AEMULUS, AGMO, TOPGLOV, MINETEC, CMSB, APPASIA, INARI, EURO, JTGROUP, SCIB, PERDANA, BJCORP, K1, CAREPLS, SEALINK, CFM, YONGTAI, CUSCAPI, and SIAB. All of which were able to sustain their rallies throughout the day on the top volumes list.

$TOPGLOV / 7113 (TOP GLOVE CORPORATION BHD) since breaking out towards the RM 1.30+ regions over the past month, had been retracing and consolidating here with RM 1+ as the main support levels on the daily chart.

Today, it was able to breakout from its RM 1.12 major resistance with good volume and rallied all the way towards the RM 1.19 level with good volume and buying momentum here, suggesting a potential uptrend continuation pattern.

Will be monitoring TOPGLOV closely. As long as able to hold above its RM 1.12 support, could continue on towards and beyond the RM 1.20+ regions soon.

$CMSB / 2852 (CAHYA MATA SARAWAK BERHAD) since forming its dip regions around the RM 0.90+ levels during April, had been able to hold well and trend up strongly over the past few months on the daily chart.

Today, it was even able to breakout all the way towards the RM 1.42 regions wit huge volume and buying momentum here. Overall looking very strong, and could be the start of a parabolic rally.

Will be monitoring CMSB closely to see how far it can go.

EPICON since retracing over the past 2 weeks here from its RM 0.37 regions back towards the RM 0.32+ major support levels, was able to breakout strong from its RM 0.34+ immediate downtrend resistance and rallied back towards the RM 0.365 regions with good volume and buying momentum.

For now looking quite strong here for a potential recovery play and as long as able to hold above its RM 0.34+ immediate support levels, could continue to breakout towards and beyond the RM 0.37+ regions to test its RM 0.40 major resistance level.

$YNHPROP / 3158 (YNH PROPERTY BERHAD) since its huge rally all the way towards the RM 0.89 regions, had been entering into a minor consolidation phase with RM 0.72+ as the main support over the past few days.

For now it's trading towards the end of this triangle consolidation pattern already and if able to sustain, could breakout from its RM 0.80+ main resistance levels soon for an uptrend continuation pattern towards the RM 0.90+ regions.

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - LEMBAGA TABUNG HAJI

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - LEMBAGA TABUNG HAJI

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - LEMBAGA TABUNG HAJI

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - LEMBAGA TABUNG HAJI

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - LEMBAGA TABUNG HAJI

Sarawak's Economic Takeoff: Companies That Could Benefit

In 2024, Malaysia's GDP is expected to grow by 4% to 5%. However, Sarawak's growth rate is projected to be higher, reaching 5% to 6%. With the Sarawak government allocating RM9 billion for development in its 2024 state budget, the economic outlook for Sarawak looks very promising. This budget increase signifies the Sarawak government's strong commitment to accelerating regional economic growth and development.

This substantial budget is likely to be used for various development projects, including infrastructure upgrades, support for local industries, and social welfare programs. These initiatives could attract more investment, create jobs, and improve the overall quality of life for the people of Sarawak.

For the stock market, this undoubtedly presents new opportunities. Here are a few areas that might benefit:

📍 Infrastructure Construction: With infrastructure upgrades and expansions, related construction and engineering companies could benefit. This could drive up their stock prices.

📍 Local Industries: The government might provide more support and incentives to promote the development of local industries, which could enhance the profitability of related companies and, in turn, boost their stock prices.

📍 Social Welfare: As social welfare programs are implemented, consumer purchasing power could increase, potentially driving up the stock prices of retail and consumer goods companies.

Here are some stocks related to Sarawak that could potentially benefit from Sarawak's economic takeoff:

📌 $CMSB / 2852 (CAHYA MATA SARAWAK BERHAD)

CMSB is a Sarawak-based conglomerate engaged in cement production, construction materials & trading, construction, road maintenance, property development, ICT, and financial services. This company has historical ties to the late Tun Taib, the former premier and Yang di-Pertuan Negeri Sarawak.

📌 $KKB / 9466 (KKB ENGINEERING BERHAD)

KKB specializes in steel fabrication for buildings and other products used in the construction sector. The company has also diversified into manufacturing steel pipes, pipe specials, and LPG cylinders. This expansion aligns well with the anticipated infrastructure boom in Sarawak, making KKB a likely beneficiary.

📌 $IBRACO / 5084 (IBRACO BERHAD)

IBRACO is involved in property development, construction, and quarry businesses in Sarawak. Like CMSB and KKB, IBRACO stands to gain from the increased infrastructure activities in the region.

📌 $ADVCON / 5281 (ADVANCECON HOLDINGS BERHAD)

ADVCON operates as a construction firm specializing in civil engineering and infrastructure projects, focusing on earthworks and related services. In 2023, Advancecon (Sarawak) Sdn Bhd secured a RM45.4 million earthworks contract from Petros Power Sendirian Berhad for the Miri Combined Cycle Gas Turbine (MCCGT) Power Plant Project. This positions ADVCON well for future projects in Sarawak.

📌 $ZECON / 7028 (ZECON BERHAD)

ZECON is involved in construction, water infrastructure, property development, and healthcare & hospital concessions. The company covers a wide range of sectors, including buildings, roads, bridges, and water infrastructure. On 15 March 2024, Zecon and Sarawak Digital Economy Corporation Berhad (SDEC) signed a Memorandum of Understanding to collaborate on the Kota Petra Masterplan, which includes developing an integrated urban area with smart city technologies.

📌 NAIM

Naim is a leading township developer in Sarawak with flagship developments in Miri, Kuching, and Bintulu. As a Class A Bumiputera Contractor with ISO 9001 certification, Naim has also expanded beyond Sarawak into Sabah, Peninsular Malaysia, and Fiji, working on various large-scale projects, including the MRT project in Klang Valley and road rehabilitation projects in Fiji.

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - LEMBAGA TABUNG HAJI

$CMSB / 2852 (CAHYA MATA SARAWAK BERHAD)
Research by RHB
Neutral (Maintained) – TP RM1.12

“Results Missed Expectations"

MaintainNEUTRAL,newMYR1.12TPfromMYR1.06,6%downside.Cahya Mata Sarawak’s 1Q24 core earnings of MYR19.8m were below ours and consensus’ full-year estimates at 18% and 13%. Although its cement wing’s results were disappointing, we maintain FY24F earnings as we expect sales volume to pick up in the coming quarters. As CMS is currently fairly valued and its risk-reward profile appears balanced, we retain our call.

Analyst:
Nai Wan Yan
nai.wan.yan@rhbgroup.com

$CMSB / 2852 (CAHYA MATA SARAWAK BERHAD)
Research by TA
Sell – TP RM1.19

“A Soft Patch for FY24"

After rolling forward the valuation base year to CY25 earnings, we have arrived at a new target price of RM1.19 (from RM1.11). However, given the recent strong run-up in the share price, we believe the stock is now fairly valued. Therefore, we recommend that investors take profits at this juncture. Downgrade to Sell.

Analyst:
Raymond Ng Ing Yeow
raymondng@ta.com.my

$CMSB / 2852 (CAHYA MATA SARAWAK BERHAD)
Research by MIDF
Buy – TP RM1.38

“A Quarter of Slower Activities"

Maintain BUY. In light of the upcoming developments that are expected in Sarawak which will drive stronger construction job flows, we believe CMSB is well positioned to ride on this upside as it is currently the only cement producer in the state and the main supplier. We expect ongoing projects such as the Pan Borneo Highway and the upcoming Sabah-Sarawak Link Road (Phase 2) to further improve demand. All factors considered; we reiterate our BUY recommendation on CMSB.

Analyst:
Royce Tan Seng Hooi
royce.tan@midf.com.my

$CMSB / 2852 (CAHYA MATA SARAWAK BERHAD)
Research by Maybank
Buy – TP RM1.38

“1Q24: Above expectations"

CMS’ 1Q24 net profit beat expectations at 28%/27% of our/consensus’ full-year forecasts on strong delivery by all ops including cement. We raise our FY24E net profit forecast by 8%, unchanged for FY25/FY26E. Pegging on an unchanged 10x FY24E PER (-0.5SD of LT mean), our revised TP is MYR1.38 (+10sen). CMS remains a liquid proxy to higher construction activities in Sarawak. We reiterate our tactical BUY call.

Analyst:
Wong Chew Hann
wchewh@maybank-ib.com

Cahya Mata Sarawak Bhd remains cautiously optimistic about its prospects for 2024, despite challenges stemming from the high foreign exchange rate and the outcome of the ongoing arbitration for Cahya Mata Phosphates.

KUALA LUMPUR: Cahya Mata Sarawak Bhd (CMS) recorded a net profit of RM38.34 million for the quarter ended March 31 2024, down from RM42.56 million a year ago.

© New Straits Times Press (M) Bhd

Quarterly rpt on consolidated results for the financial period ended 31/03/2024

General Meetings: Outcome of Meeting

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - LEMBAGA TABUNG HAJI

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - LEMBAGA TABUNG HAJI

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - LEMBAGA TABUNG HAJI

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - LEMBAGA TABUNG HAJI

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - LEMBAGA TABUNG HAJI