6. CMSB case sharing the similar common scandal issues with Transmile

Answer : Transmile scandal is not as complexed as it seen. Inflated Receivable and rapid depleting cash in Bank in a short period are the good warning signals. As far as i know, Transmile had been enjoying robust revenues growth in 3 years and Receivable inflated to 381 millions for 2006 or surged 270m in comparison to the previous year. In addition, cash flows from operation activities substantially dropped from 161 million to 18 million in 2006.
CMSB doesn't face any inflated Receivable or depletion of cash flows. CMSB net cash used in operating activities is merely 1.5 million in 6 months results to 30 Jun 21.

Investment securities 409 million
Cash and bank Balance 375 million
Non Current Loan 325 million
Current loans 588 million
Net Bank loans 129 million

CMSB's Receivable was merely 152 million or reduced by 30 million in comparison to the 4th Qtr 21. Inventories remained 330 million

I have to admit that we are more sophisticated than layman investors. They are really badly informed through reading news on the press.

Here's the summary of his concerns raised by Anson:

1. CMSB's CFO has resigned from his employment.
Answer: CFO was fired through non renewal of the employment contract

2. Group MD has resigned from his employment.
Answer : Group MD was seen forced from early retirement through the transitional plan

3. Lembaga Tabung Haji (LTH) dumping the shares.
Answer : LTH remains the substantial shareholder held 7.57% after trimming its stakes.

4.EPF ceased to be substantial shareholder
Answer : It's hard to gauge EPF direction. They even ceased to be the substantial shareholder of TAAn in Aug 21.

5. CMSB's case sharing the similar commonity with Serbadk.
Answer : CMSB has delayed disclosure of the KPMG findings until end of October as legal investigations is underway. This, is what really different from Serbadk.

Anyway, thanks Anson...He has triggered me to look for more information about 'legal investigations'. No more nonsense now. hi hi.

Not interested in entertaining people who is intending simply tembak for pleasure rather than exchanging knowledge. I come here to make money. Time will tell soon. Hahaha

Simply tembak again... 3.5? Go to check when i started posting in CMSB thread la.

What have you guys learned from Transmile & Serbadk cases... simply tembak for pleasure?

EPF God like analyst good man.....EPF still keen on winding up Transmile which ownes RM 500 mil old story

https://www.thestar.com.my/business/business-news/2010/09/29/epf-still-keen-on-winding-up-transmile-which-owes-rm500mil

Full story of Transmile just in case you have forgotten some details... For reading pleasure.


https://so04.tci-thaijo.org/index.php/NCRJ/article/view/25093/21369

My analysis is based on facts not what I heard... gullible again worshipping God like analyst. I don't have to cari makan in Bursa anymore.

positive assessments on the company’s prospect and lofty target prices.These, despite the fact that profit growth were unusually high – a common general red flag for financial statement fraud. One of the leading local research houses was rating Transmile’s share as a “strong buy” with an expected total return exceeding 20% in the next 12 months, underpinnedby the reported net profit growth of 110.5%. An analyst explained thatthis was mainly due to the increase in aircraft capacity in 2006,contributed by the arrival of four MD-11s in September 2005. Curiously enough, the research house’s own estimate on the Transmile’s profitwasn’t that far off, but merely by 1.5% than that of Transmile’s own inflated figure. Other analysts were not bad either in their estimates, with Transmile’s figures were just 4.6% above consensus. This gave riseto suspicion that the analysts could have gotten wind of the informationfrom insiders in Transmile

AnalystsTransmile had always been one of the favorite companies forinvestors and analysts alike. Its share price had risen by 428.3% since2003 and analysts had always maintained bullish views on Transmile.Key points that were usually highlighted by analysts were, Transmile’s strong growth in earnings; its five year pact with DHL, as its strategic partner; its landing rights in various cities around Asia, freedom rightsout of Hong Kong and China to the US; its increasing capacity includingthe four long haul and fuel efficient MD11 planes freighters; and thecompany’s strong and reputable shareholders such as The Kuok Groupand Pos Malaysia. In order to encourage a better understanding of the company’s performance and latest developments, Transmile had also conducted several briefing sessions to interested fund managers and analysts and “one to one” dialogue sessions upon request. AdvocacyOn 15 February 2007, the company released its unaudited 4th Quarter of 2006 report. Both local and foreign analysts, agreed with it by giving

From the operation activities to service the interest payments of the debts. The drop also gave rise to concerns on its ability to finance its futuregrowth as seeking funds maybe more expensive in the future. Transmile’s cash and bank balances as at year-end 2006 stood at RM417 million. Of this amount, only a meager RM18 million came from its operating activitieswhile much of it, RM260.7 million was from the previous year and RM287 million from the issuance of new shares.

Transmile...Go to read the story before tembak again.

While many analysts were focused on the earnings and company’s
prospects, there were other indicators that could have a material effect on
the investors’ decisions to invest in the company but were largely missing
from many analysts’ reports. Despite being a strong growth company,
Transmile had not really been able to turn its sales into cash. Transmile’s
trade receivables had been building over the years with trade receivables
for 2006 were reported at RM381.2 million, which was a 243% jump or
RM270.1 million more than the previous year, while growth in 2005 was
5% and 2004, 46.1%. With revenue recorded increase of 80% or RM439.1
million during the same year 2006, receivables accounted for much more
of the company’s revenue growth. Since trade receivables could have
influence on the profitability reported, it would be prudent for analyst to
be on the alert as these trade receivables could easily be re-classified as
doubtful debts.
The cash flows from the operation activities substantially dropped
from RM161.2 million in 2005 to RM18 million in 2006, which resulted
in the company not having sufficient fund from its operating activities
to service the interest payments of existing debt which stood at RM36.5
million. The shortfall had been financed by its cash flow from financing
activities. Given the substantial drop in the operating cash flow and the
level of debts, question lingered over the sufficiency of the future cash flow

Switch to Transmile scandal ...Wait ah

CMSB's previous management team was appointed by the Owner, Taib. family, included Group MD (appointed director). Serbadk MD is the owner cum MD man. See the difference picture or not?

Legal investigations..Possible of white-collar crime man. who will be the one do the legal investigations? KPMG, lawyer or Prosecutor (police) ?

Did you hear any 'legal investigations' in Serbadk after few months of ding-dong?

Again, if you don't know how to read or interpret the announcement properly. Get someone to help you. I think many here are willing to lend their hands.

I welcome negative news or facts about a company to keep myself updating. Please don't simply tembak.

We don't know what is the strategy of EPF and why they disposed CMSB. You said EPF disposal means a company going to have big problems soon. With the same reckoning, EPF has ceased to be TAAN substantial shareholder... Is it TAAN going to have big problems soon?

Lembaga Tabung Haji remains the substantial holder with the shareholding of 82.4 million shares or 7.57% stakes in CMSB.

Why pretending? What Group MD resign la... He is forced to retire early . Haha

Get someone to read the announcement for you to make a proper decision.

Dato Isaac Lugun retired as Group Managing Director ("GMD") of the Company on 8 July 2021. As part of the transition plan for the GMD, he remained as a Non-Executive Director until 7 August 2021.

Legal investigations, an investigation is very simply the gathering together of facts to form a cohesive and logical picture of a given situation. Legal investigation is such a gathering together of facts in a situation which will be tried in a court of law. Because of this, there are exacting requirements, called rules of evidence, which must be met in order for the evidence gathered in the course of such an investigation to be admissible for the judge and jury to see and hear.

See who will be charged in the court.... CFO, CIO...

" WWe referto the Company's announcements on 5 May 2021, 3 June 2021, 8 June 2021 and 2 August 2021 on the suspension of Mr Syed Hizam Alsagoff, the Group Chief Financial Officer of the Company and appointment of KPMG Management & Risk Consulting Sdn Bhd ("KPMG MRC") as the independent consultant to review the financial management of certain investment and contracts. Whilst KPMG MRC has completed its reports, the legal investigations of the said investments and contracts are still ongoing. The Company expects the complete results of the review to be announced by the end of October 2021.

Noting that the contract of Mr Syed Hizam Alsagoff as the Group Chief Financial Officer of the Company ends tomorrow (31 August 2021), the Board has today decided for the Company's General Manager, Group Finance, Madam Tan Mei Fung to continue as Head of Finance pending the recruitment of a new Group Chief Financial Officer.



This announcement is dated 30 August 2021. "

Please get your fact right. CFO is fired by the board of director through non renewal of the contract. There is a lot of difference between resign and fire.

Please do remember to get your comrades to dump tickets tomorrow. If not, i would dump first and lari kuat kuat.

It's similar with Serbadk... See who is gullible.

Yeah. All these is hard selling and 'fakes' facts claimed by super smart guy. Please dump your tickets to break 1.3 tomorrow

It was so confusing and hard to quantify contribution from Associates and JV and inter segment after the disposal in year 2020. All is cleared now.

JV SEDC & PPES remains profitable after disposing 2% stakes and reclassified as JV from 51% subsidiaries in Construction and Road Maintenance segment in year 2020. From year 2021 onwards, It has changed to Road Maintenance segment. Contribution from SEDC and PPES (Construction) is classified as JV.

CMSB booked heavy losses in Associate, OM Materials, for year 2020 is due to one off subscription of ICPS.

Exercise of call option on Excess Irredeemable Convertible Preference Shares (“ICPS”)
In 2018, pursuant to the Share Subscription Agreement with OM Materials (Sarawak) Sdn. Bhd. (“OM Sarawak”), OM Materials
(S) Pte. Ltd. (“OM Singapore”) exercised its option to call upon the non-controlling interest shareholder of OM Sarawak to sell
66,309,700 units of Excess ICPS in OM Sarawak to OM Singapore for a total consideration of A$25,040,000.

Yeah. KPMG investigation is targeting to the system of control and risk management within the group.

We refer to the Company's announcement dated 5 May 2021 and the query from Bursa Malaysia Securities Berhad dated 6 May 2021 ("Query") in relation to the same.



The Company wishes to provide the following additional information pursuant to the Query:



1. Duties of the Group Chief Financial Officer ("GCFO") will be taken over by our General Manager, Group Finance - Madam Tan Mei Fung who has been with the CMSB Group for 24 years and has the requisite experience and knowledge to assume the role in the interim.



2. Concerns have been expressed to the Board on substantial investment and contract losses which have been accounted for and reported in our audited financial statements for 2016, 2017, 2019 and 2020. The nature of these transactions will be subject to review by an external consultant to be appointed by the Company.



3. CMSB is working on the appointment of an external consultant to undertake the investigation. The Terms of Reference ("TOR") are being drafted and expected to be completed within this week.



4. As stated under item 3 above the TOR are being finalised and the schedule for completion will be agreed with the external consultant to be appointed by middle of May 2021. The more important task of the external consultant, is to review whether there were sufficient effective controls and risk mitigation measures in place to ensure that there are no future recurrences.



5. None. As stated under item 2 above, these are historical losses which have been accounted for and reported in our audited financial statements for 2016, 2017, 2019 and 2020.



This announcement is dated 6 May 2021.

Charlie. People will be rushing to join the boat tomorrow. I haven't loaded enough tickets due to lacking understanding of CMSB businesses. Worried of KPMG report. Ha ha.

I didn't know much things behind CMSB until I started digging for more information since 3 days ago. Ready....

Market cap of CMSB stands half of OMH. It’s quite reasonable if CMSB holds 25% stakes in OMM without other businesses.

Market Cap comparison:
CMSB - 1.46 billion
OMH - 2.9 billion

What’s your take on CMSB? Besides OMM, they owned cements business, 50% Sacofa, Associate KKB & KENAGA, JV construction business with Sarawak government.

On the surface, CMSB doesn’t seen sharing much profit from OMM for merely holding 25% stakes. You would be surprised to know the results of comparison between OMH and OMM contribution to CMSB. OMH has reported AUS 17.4 million ( RM 54 million ) PAT attributed to the owner of company whereas CMSB shared PAT RM 25 million from OMM. It’s almost half of OMH entire profit.

OMH’s smelting segment (mostly derived from OMM operations ) has reported PBT AUS 40.5 million for the 1st half 2021. After deducting CIT 24% and translating into RM, we would arrive Associate (OMM) contribution RM 23.8m which is rather close to the above calculations of RM 25m.

OMM contribution is expected far more than 25m given strong demand of ferrosilicon and robust selling prices in the next 6 months.

Profit contributed by Sacofa is rather stable, about 42m per year ,in the past few years. With the assumption of Safico generated average 21m for the 1st half 2021, the remaining 25m is reasonably expected deriving from OM Materials, 75% owned by OMH.

Sacofa PBT:
FY 2020 - 114m
FY 2019 - 113m
FY 2018 - 105m
FY 2017 - 106m

Both OM Materials (OMM) and Sacofa are not listed entities. Therefore, their operations performance will only be revealed in the Annual Audited Accounts.

Cement division bottom line is catching up and may surpass year 2019. JV SEDC & PPES remains profitable after disposing 2% stakes and reclassified as JV.

What really interesting is profit generated from OMM & Sacofa surged to 46m in 6 months performance. We will see a record breaking profit in future when Jendela project kicks off and high profit contributed from OMM as FeSi prices rally.

CMSB operation results half Year 2021
41.5m - Cements
2.7m - Trading
4.5m - Road maintenance
11.3m - Property Development
-11.1m - Phosphate
6.1m - Strategic Investment

15.2m - Share Profit of Associate ( KKB & Kenaga )
46.0m - Share Profit of Associate ( OMM & Sacofa & etc)
12.8m - Share Profit of JV (SEDC & PPES & etc)

AR 2020
Sacofa, the major telecommunications infrastructure provider in Sarawak responsible for over 90% of mobile traffic in the State, Sacofa was deemed an essential services provider and was able to continue running its operations unhampered throughout the initial MCO period.

Operation results of CMSB is mainly divided into few segments:

Year 2020
48.4m - Cements
3.8m - Trading
19.1m - Construction & Road maintenance
-5.3m - Property Development
-2.4m - Phosphate (Excluded impairment 51.8m)
5.6m - Strategic Investment

30.8m - Share Profit of Associate ( KKB & Kenaga )
-23.7m - Share Profit of Associate ( OMM )
41.7m - Share Profit of Associate ( Sacofa )
0.7m - Share Profit of JV (SEDC & PPES & etc)

Year 2019
73.1m - Cements
9.0m - Trading
37.2m - Construction & Road maintenance
20.1m - Property Development
-2.5m - Phosphate
-3.3m - Strategic Investment

19.1m - Share Profit of Associate ( KKB & Kenaga )
-0.8m - Share Profit of Associate ( OMM )
41.5m - Share Profit of Associate ( Sacofa )
-0.6 m - Share Profit of JV (SEDC & PPES & etc)

The biggest advantage to the existing players is the low depreciation costs. Europe automatic machines can be operated for more than 30 years. They are ready to go for price war with any new entrant as many of their old machines have depreciated to zero value.

Therfore, Tin can business players are able to maintain a comfortable level of profit margin in long term.

Tin can business doesn't require high technology but high level of precision or quality (especially leaking and corrosion) requirements must be achieved consistently to ensure safety in packaging food and beverage. It won't easy to enter into the supply chain of the established consumer players due to high switching costs and many big consumer players don't want to take extra risks from a fresh new supplier. In addition, it is a capital intensive for 2 pieces aluminium cans.

Tin can business remains relevant in a stable consumer environment. Their customers are mostly established consumer conglomerate in the market. New players hardly venture into this business since the existing players don't price the products at high level even though shortage happens adding another barrier.

Not sure how long it takes. Next TP 6 or plus another 30%.

Sarawak got big telco tower project
CMSB’s Associate, Sacofa makan udang galah

Sarawak state government holds almost 35% stakes of SACOFA. Regarding to Jendela project, who has the higher chances of getting bigger pie?

Sacofa shareholders:
CAHYA MATA SARAWAK BERHAD ( 50.00% )
STATE FINANCIAL SECRETARY ( 20.51% )
CELCOM AXIATA BERHAD ( 15.12% )
SARAWAK INFORMATION SYSTEMS SDN BHD ( 7.57% )
YAYASAN SARAWAK ( 6.80% )

STATE FINANCIAL SECRETARY
State Financial Secretary’s Office is the State Financial Authority under Financial Procedure Act, 1957 and responsible for financial management in Sarawak. State Financial Secretary’s Office is also a body corporate established on 2nd January 1948 under State Financial Secretary (Incorporation) Ordinance (Cap. 103). The appointment of State Financial Secretary’s Office is subject to Article 11 of the Sarawak State constitution.

SARAWAK INFORMATION SYSTEMS SDN BHD
In the mid 1980's the use of IT among state government agencies in Sarawak started to grow. Shortly thereafter, in 1991, SAINS, then called Sarawak Computerisation Services Sdn. Bhd. was formed. SAINS was given the task of spearheading the development and implementation of IT within the Sarawak State Government to better integrate and utilize its resources.

“ SACOFA SDN BHD (552905-P) is the leading telecommunication infrastructure provider in Sarawak.

SACOFA’s primary objective is to promote common sharing of telecommunications infrastructure amongst operators, enabling speedy and cost effective service roll-out throughout Sarawak.

TYPE OF STRUCTURES OFFERED BY SACOFA
Rapole (Ranging From 12m to 30m)
Lamp pole structure (24m)
Monopole (ranging from 24m to 45m)
Monopole Tree (ranging from 36m to 45m)
3 legged Tower (ranging from 45m to 120m)
4 legged Tower (ranging from 45m to 120m)
Rooftop

“ Since its inception, SACOFA has built and acquired more than 1,800 telecommunication towers throughout the state of Sarawak to cater to the network expansion needs of cellular operators and other organizations.

To help new operators roll out their wireless networks in Sarawak, we offer our completed towers to share among networks with our streamlined process. Our charging principle is based on a non-discriminatory and fair basis. “

OMH 1st half 2021 operation results :

Smelting
This business segment covers the operations of the FeSi and manganese alloy smelter operated by OM Sarawak and the Qinzhou manganese alloy smelter operated by OM Materials (Qinzhou) Co Ltd (“OMQ”).

The operations within OM Sarawak and OMQ recorded revenue of A$255.3 million for 1H 2021 as compared to A$272.1 million for 1H 2020. The decrease in revenue was mainly due to the
lower volumes of ferroalloys produced and sold in 1H 2021 as compared to 1H 2020.

OM Sarawak produced a total of 61,472 tonnes and 94,827 tonnes of FeSi and manganese alloy respectively in 1H 2021 (1H 2020: 96,508 tonnes of FeSi and 109,415 tonnes of manganese
alloy) and sold 55,360 tonnes and 101,944 tonnes of FeSi and manganese alloy respectively (1H 2020: 80,538 tonnes of FeSi and 99,833 tonnes of manganese alloy).

Total revenue contribution
for 1H 2021 was A$232.8 million as compared to A$256.1 million for 1H 2020. 4 FeSi furnaces have were shut-down since the second quarter of 2020 due to limited manpower at the Plant because of labour disruptions coupled with lockdowns and strict travel restrictions as a result of the COVID-19 pandemic. In addition, operations at the Plant were also temporarily suspendedfor about 1 month as a result of positive COVID-19 cases which also contributed to the decrease in production tonnages and sales volume in 1H 2021.

OMQ’s production was suspended after the shut-down of its 2 furnaces at the end of March 2020 for scheduled maintenance and furnace upgrading. A furnace transformer was subsequently upgraded from 16.5MVA to 25.5MVA to improve production efficiency and to provide the Qinzhou
smelter with added flexibility to produce either SiMn or HCFeMn. Full commercial operations for the upgraded furnace commenced in late January 2021 and the second furnace was subsequently restarted in March 2021. OMQ produced 24,684 tonnes of manganese alloy and 14,469 tonnes of manganese sinter ore in 1H 2021 (1H 2020: 10,140 tonnes of manganese alloy and 8,051 tonnes of manganese sinter ore) and had a revenue contribution of A$22.5 million for 1H 2021 as compared to A$16.0 million for 1H 2020.

The smelting segment recorded a higher contribution of A$40.5 million for 1H 2021 as compared to A$22.3 million for 1H 2020 predominantly due to the improved prices for ferroalloys, particularly
FeSi, which resulted in improved margins achieved, and the one-off gain from the de-recognition of financial liabilities realised from the redenomination of the MYR portion of the project finance
loan to USD. This increase was also contributed by OMQ having resumed full operations in the
first quarter of FY2021.