About Cahya Mata Sarawak Bhd

Cahya Mata Sarawak Berhad is an investment holding company. The Company, through its subsidiaries, is engaged in manufacturing and trading of cement and construction materials, construction, road maintenance, township, property and infrastructure development. It operates through seven segments, including Cement, which is engaged in manufacturing of cement, clinker and concrete products; Construction materials and trading, which is engaged in quarry operations, production and sale of premix, wires and general trading; Construction and road maintenance, which is engaged in civil engineering, road construction and maintenance; Property development, which is engaged in property holding, development, project management and related services; Samalaju development, which is engaged in lodging, catering services and manufacturing of ferro alloy products; Strategic investments, which offers financial service, education and telecommunication infrastructure providers, and others.

There are two notable directors in Cahya Mata. First is Y A M Tan Sri Dato’ Seri Syed Anwar Jamalullail, who is the chairman for Cahya Mata, at the same time chairman for Nestle (Malaysia) Berhad and Lembaga Zakat Selangor. Moreover, Y A M Tan Sri was the former chairman of Lembaga Tabung Haji Investment Panel, and also formal chairman for various huge corporation in Malaysia. Second notable director is Y Bhg Datuk Syed Ahmad Alwee Alsree, who is the son in law of Abdul Taib Mahmud, the Sarawak chief minister.

Based on Financial Year (FY) 2016 full year results, Cahya Mata achieved RM 1.55 billion turnover, which is categorised as a large company based on turnover value. Other aspects of the company’s FY2016 financial results are illustrated in the table below.

Cahya Mata’s revenue has been on a upward trend since 2012 but experience a drop from RM 1.78 billion in FY2015 to RM 1.55 billion in FY2016 which translates to a 13% decrease. In terms of net earnings, Cahya Mata experienced a similar drop from RM 248 million in FY2015 to 169 million in FY2016 which equals to 32% drop. Both drop in revenue and profit was due to weak macroeconomic environment such as strong US dollar increases raw material cost, slowed down economy growth in Sarawak and bank lending restraints slows public and private demand in construction industry.

Net profit margin wise, Cahya Mata scores a reasonable 10.9% as well as an average Return of equity (ROE) value at 7.64%.

On company’s debt, Cahya Mata has a low debt to equity ratio at 0.15 and both current ratio and cash ratio are of good values at 1.99 and 0.58 respectively.

Cahya Mata pays a low dividend yield of 1.57% in FY2016 with a payout ratio of 0.4, which is an average payout ratio among public companies.

In conclusion, Cahya Mata is a large corporation with good financial strength and low debt. However, with 92% of the group’s revenue is from the construction sector, its ups and downs is very closely tied with the macroeconomic environment as well as the financial climate in Sarawak state. The upcoming general election will definitely affect the company’s future as its upcoming revenue growth will be greatly depending on the development policies that the upcoming state government has for Sarawak.

(Next quarterly results announcement: Last Week of Feb 2018)

News on Cahya Mata Sarawak Bhd

Cahya Mata Sarawak Bhd confirmed that Datuk Richard Curtis will retire from his position as group managing director on December 31, 2017. The designation of Datuk Isaac Lugun as group chief executive officer (corporate) and Goh Chii Bing has group chief executive officer (operations) were appointed on August 1, 2017. Both new chief executives have ensured the company’s smooth and undisturbed transition as it meets new challenges and achieves new milestones.

This stock has been seen as a potential because of the company’s strong business profile as Sarawak’s only cement manufacturer. Their diversified source of income has also been seen as favourable especially with majority of them coming from the construction sector. Having a strong market position and vertically integrated operations, the Group is anticipated to acquire from the development of the Sarawak Corridor of Renewable Energy (SCORE), the State’s ambitious digital economic transformation plans and the Pan Borneo Highway project next year.

Reflecting on the company’s increment of 44% in profit, this is largely supported by the decrease in cost of production of cement, the completion of its property project in Rivervale, and also higher share profits from associates.

iVolume Spread Analysis Weekly Chart & Comment – Cahya Mata Sarawak Bhd

Based on 1-year weekly iVSAChart above, we saw the changed in trend since end of November 2018. This is confirmed with Buy Signal generated by iVSAChart in January 2018. Notice that the volume is also increased for the last few weeks. This mean the Smart Money is buying after the Mark-down at lower price.

The 4 Sign of Strength also confirmed the support from Smart Money. We will hold for Cahya Mata until we see Sign of Weaknesses or Red Diamond.

Interested to learn more?

Sign up now via the URL link below to receive a series of FREE weekly GE14 newsletter with stock analysis for the next 10 weeks leading up to the GE14 election, where we analyse the major financial news and company background in these GE14 stocks specially just for you.

http://ge14.ivsachart.com/

P.S Upcoming events

1. Market Conference & Investment Outlook 2018

Malaysia is expecting to undergo its 14th General Election (GE14) anytime within the 2nd quarter of 2018. The uncertainty leading up to the 14th general election and the results after the election will affect the country’s markets and its economy with many consequences. But the main question here is, how is Malaysia GE14 going to affect the country’s stock exchange? Featuring high-profile speakers we will share with you How the General Elections this year will Impact the Stock Market and also how you can identify stock opportunities with Growth Potential! Click the link below to find out more!

https://www.ivsachart.com/investconference2018.php

2. Monthly Mini Workshop

Find out more about our iVSAChart mini workshop schedules via: https://www.ivsachart.com/events.php or attend via webinar for the upcoming workshop: https://register.gotowebinar.com/register/5918645092666604803

· Find out more about iVSAChart events via: https://www.ivsachart.com/events.php

· Follow & Like us on Facebook via: https://www.facebook.com/ivsachart/

· Subscribe to our YouTube Channel via: https://www.youtube.com/ivsachart/

· Contact us via: email at sales@ivsachart.com or Call/WhatsApp at +6018 236 9060/ +6018 286 9809/ +6019 645 3376

Disclaimer

All views or opinions articulated in this article and/or related website are expressed in iVSA Mobile Technologies and its writers’ personal capacity and do not in any way represent those of the company, their employers and other related parties.

All published posts and materials made do not constitute as investment advice or recommendations for buy or sell call. iVSA Mobile Technologies and its writers do not take responsibility whatsoever for any loss or damage of any kind incurred from opinion or materials presented in the article and any other materials.

All materials presented are for knowledge sharing purposes and while iVSA Mobile Technologies and its writers will take the best efforts to produce materials that are as accurate as possible based upon publicly available sources that are believed to be reliable, but there is no guarantee as to accuracy of the information provided. All posts may be edited in the future without prior notice.

Conduct your own research and assessment before deciding to buy or sell any stock. If you decide to buy or sell any stock, you are responsible for your own decision and associated risks.