KUALA LUMPUR (May 22): Cahya Mata Sarawak Bhd (CMSB) saw its net profit fall 40.9% to RM42.56 million for the first quarter ended March 31, 2023 (1QFY2023), from RM72.02 million a year earlier, on lower profit contribution from the road maintenance, property development and phosphate divisions.

According to its filing with Bursa Malaysia on Monday (May 22), its profit contribution from associates also fell 69% to RM14.01 million in 1QFY2023, from RM45.72 million a year earlier. This was partly due to the group no longer recognising profits from an associate, OM Materials (S) Pte Ltd, which it had disposed of in December last year for US$120 million.

As a result, earnings per share came in lower at 3.96 sen for 1QFY2023, compared with 6.7 sen in 1QFY2022.

Revenue for the quarter, however, was up 28.8% to RM275.67 million from RM214.04 million in 1QFY2022, due to higher contributions from the cement and oiltools divisions.

On prospects for the financial year ending Dec 31, 2023 (FY2023), CMSB said the performance of its divisions in 1QFY2023 reflects the active infrastructure and rural development works in Sarawak.

“This is expected to continue for the remainder of FY2023. Our group of companies are in position to benefit from these developments. The board of directors holds a long-term view that the Sarawak economy will remain robust,” it added.

The group ended FY2022 on a high note, with its net profit improving 26% to RM298.06 million, from RM204.22 million in the previous year. Revenue surpassed the RM1 billion mark to record RM1.01 billion in FY2022, compared with RM814.55 million in FY2021.

CMSB shares closed up six sen or 5.56% at RM1.14 on Monday, giving it a market capitalisation of RM1.22 billion.