Cahya Mata Sarawak's Q3 earnings jump 15pct

Cahya Mata Sarawak's Q3 earnings jump 15pct

Cahya Mata Sarawak Bhd’s (CMS) net profit rose 15 per cent to RM53.88 million in the third quarter (Q3) ended september 30, 2021 from RM46.71 million a year earlier.

KUALA LUMPUR: Cahya Mata Sarawak Bhd's (CMS) net profit rose 15 per cent to RM53.88 million in the third quarter (Q3) ended september 30, 2021 from RM46.71 million a year earlier.

However, the company's revenue fell 18 per cent to RM185.87 million from RM226.48 million last year.

This was due to a hike in Covid-19 cases during the quarter while businesses were in full operation in Q3 2020 after the first movement control order (MCO) was lifted.

For the nine months, CMS registered a higher net profit of RM179.06 million from RM80.70 million, while its revenue rose three per cent to RM572.93 million from RM555.80 million last year.

"Revenue increased due to higher contributions from the cement, trading and property development divisions.

"The increase was partially offset by a dip in revenue from the road maintenance and other divisions," it said.

CMS said with the resumption of construction activities post-MCO 3.0, the property development division would focus on the timely execution and completion of projects under construction.

However, it said the labour shortage and the increase in raw material pricing remain a constant challenge for the company.

"The division has delivered a continuous performance in the affordable housing segment of below RM500,000.

"The sales rate at the residential developments of Projek Bandar Samariang has remained strong, meeting the demands of this segment in both product and pricing.

"The low interest rate environment and the government's Home Ownership Campaign, which has been extended to December 31, 2021 is expected to support the mid- market segment demand," it said.

Meanwhile, CMS said the Malaysian Phosphate Additives Sarawak (MPAS) project had not been progressing as scheduled due to technical and commissioning issues, the extent of which is being assessed and solutions being actively worked at.

The company will continue to evaluate all options on the future direction of the MPAS project.

"​​With the economic re-opening, the company is operating strict standard operating procedures to safeguard the health of its people being the top priority.

"With this, the business divisions are not yet operating at optimal levels in Q3 2021 and this is expected to further improve in the coming months.

"The management is making every effort to bolster the competitive edge and identify new business opportunities to achieve sustainable long-term growth," it added.

https://www.nst.com.my/business/2021/11/748449/cahya-mata-sarawaks-q3-earnings-jump-15pct