Posted by johnny cash > 2014-04-30 14:05 | Report Abuse

KEY ASSUMPTIONS
Year 2013 2014F 2015F 2016F
Capacity (‘000 tonnes) 1,750 1,750 2,750 2,750
Utilisation (%) 90% 90% 60% 63%
ASP (RM) 300 320 320 320
Source: CMS, UOB Kay Hian

Posted by johnny cash > 2014-04-30 14:05 | Report Abuse

Construction Materials and Road Maintenance
 Leading construction materials provider. CMS has strategically positioned itself
as a one-stop building materials provider, complementing other divisions such as
construction and property whereby products can be utilised in-house, thus
enhancing the overall profitability margins of the group. The construction materials
division consist of i) five quarries commanding an estimated 30% share of stone
aggregates sold in Sarawak, ii) six premix plants and a mobile plant with 60% share
of concrete and bitumen emulsion market and iii) a single plant to manufacture steel
wire and wire mesh.
 Capitalising on infrastructure growth. Similar to cement, construction materials
demand will be underpinned by increased construction activities within the State,
especially from SCORE. We conservatively forecast revenue to grow by 9% from
2013-16 on stable margins.

Posted by johnny cash > 2014-04-30 14:06 | Report Abuse

Recurring income from road maintenance concessions. CMS currently receives
stable recurring income from two separate concessions to maintain 680km of federal
roads and 5,200km of state roads. Having said that, we gather that these
concessions are expiring soon in 2017/18. Nevertheless, we assume segment
earnings to grow by 3% in 2015 as its state road concession is due for another
round of revision in Jan 15. Note that the concession rate was last revised upwards
by 9% in 2012. Looking ahead, construction of more roads to satisfy SCORE needs
as well as urbanization in the state bode well for the growth outlook of this division.
 Assuming non-renewal of concessions. We have conservatively assumed nonrenewal
of these concessions upon their expiry in 2017/18 reflecting concerns over
its perceived political links. That said, we reckon CMS has a strong chance of
clinching more concessions in future due to its incumbency and solid track record.

Posted by johnny cash > 2014-04-30 14:07 | Report Abuse

ESTIMATED MARKET SHARE
Products Market share in Sarawak
Stones 30%
Premix 60%
Steel wire & wire mesh 15%
Source: CMS, UOB Kay Hian

Posted by johnny cash > 2014-04-30 14:07 | Report Abuse

Property Development
 Vast landbank in Kuching. CMS owns two prime tracts of landbank in Kuching.
These include the 3,911 acre land bank which will be developed into a riverine
township named Bandar Samariang and 199-acre plot to be developed into
Kuching’s new CBD called The Isthmus, some 5km North of the city centre.
 Unlocking value through property development. We note that massive
development plans are in the pipeline and various property launches have been
earmarked for the next five years, bringing in an estimated GDV of RM1.7b. On top
of property development, management will carry out periodic strategic land sales
aimed at catalysing the value of its own adjoining land parcels.
 …and land sales. CMS has recently sold 500 acres of land In Bandar Samariang to
Sentoria Group Berhad for RM47m. First phase of the land measuring 200 acres will
be developed into a resort city comprising a water park, MICE facilities and a resort
whilst the remaining 300 acres have been earmarked for residential and commercial
development. We view the strategic land sales by CMS positively as it will lift the
profile of the vicinity and unlocks the value of their adjoining land bank.

Posted by johnny cash > 2014-04-30 14:08 | Report Abuse

FIGURE 10: DEVELOPMENT PIPELINE
Land sales (2013 –2018)
Location
Ownership
(%)
Land
(acres)
Est GDV
2013-2018
(RMm)
Acres
developed
2013-2018 Type of development Acreage (RMm)
Bandar Samariang 100% 4,211 474 155 Mixed use – mid income 635 67.2
The Isthmus 51%* 199 511 55 Mixed use – new CBD 5.0 9.9
Lot 9244 100% 19 262 19 Semi-Detached, Terrace
Lane Park Residences 100% 4 27 4 Semi-Detached
Bintawa Lot 622 51%* 8 80 8 Commercial
Bintawa Lot 2520 51%* 35 350 35 Commercial
Toll Bridge Land 100% 8 150 8 Mixed use – river frontage
Total 4,510.9 1,854 283.5 640.0 77.1

Posted by johnny cash > 2014-04-30 14:09 |

Post removed.Why?

Posted by johnny cash > 2014-04-30 14:10 | Report Abuse

EARNINGS AND FINANCIALS
 Steady earnings growth. We forecast CMS earnings to grow by 3-year CAGR of
15% from RM175m in 2013 to RM269m in 2016, spearheaded by its SCORE
investments. Despite the commencement of OMS plant in 2H14, we expect
meaningful earnings contribution to flow in only from 2015 onwards due to ramp up
of plant operations. Apart from OMS, the group’s bottomline is also supported by
other business segments, riding on Sarawak infrastructure growth.
 Healthy balance sheet. As of end-2013, CMS is sitting on a huge cash pile of
RM513m, giving management a sizeable warchest to participate in more valueenhancing
investments to shareholders (eg. OMS). We gather that management is
studying a few proposals and will only invest if the project meets an internal hurdle
rate of 18%. Recall that the local press has recently reported about the potential
acquisition of Sacofa, a telecommunication infrastructure player in Sarawak. Should
the deal materialize, it will significantly enhance CMS’ earnings as Sacofa is
reported to be raking in some net profit of RM60m last year.
 Upside to dividend payout. CMS has committed to a 30% dividend payout policy,
dishing out full-year DPS of 15.8sen in 2013. We continue to project 30% payout
going forward but reckon that there is scope for upward revision supported by strong
earnings growth and growing cash pile. At current price, CMS is delivering 2015F
dividend yield of 2%.
RISK FACTORS
 Construction delay
 Slowdown in global steel demand (affecting ferroalloy products)
 Disruption in power supply
 Non-renewal of road concession (although already factored into our forecast)
CATALYSTS
 Rollout of more mega projects such as hydropower plants further driving cement
demand growth
 Value enhancing acquisitions (eg. Sacofa)
 Increasing dividend payout from 30% committed currently
 Listing of key subsidiaries to unlock value

Posted by johnny cash > 2014-04-30 14:13 | Report Abuse

Tan Sri holds a Bachelors of Arts degree in Accounting from Macquarie University in Sydney,
Australia. He is a qualified Chartered Accountant, having qualified in 1984. He is also currently the
Chairman of Nestle (M) Berhad, Lembaga Zakat Selangor and Pulau Indah Ventures Sdn Bhd (JV
between Khazanah and Temasek of Singapore).

YAM Tan Sri Dato’ Seri Syed Anwar
Jamalullail
Group Chairman

Posted by johnny cash > 2014-04-30 14:13 | Report Abuse

Joined the group in 2004 and was appointed as Group Executive Director in August 2008. Datuk
Syed Ahmad graduated with a Bachelor of Law (LLB) degree from the National University of
Singapore, and practiced law in Singapore for over 10 years prior to joining CMS. He completed
the Advanced Management Program at Harvard Business School in 2012.
*Datuk Syed Ahmad is the son-in-law of Tan Sri Taib Mahmud, who is the current Governor of
Sarawak.

Datuk Syed Ahmad Alwee Alsree Group Executive Director

Posted by johnny cash > 2014-04-30 14:14 | Report Abuse

Dato’ Richard graduated with Bachelor of Law (LLB) degree from University of Bristol, United
Kingdom and is a Sloan Fellow of the London Business School. Appointed to the Board in
September 2006, he is also a director of K&N Kenanga Holdings Berhad, Kenanga Investment
Bank Berhad and a number of CMS subsidiaries.


Dato’ Richard Alexander John Curtis Group Managing Director

Posted by johnny cash > 2014-04-30 14:15 | Report Abuse

Syed graduated with Bachelor of Science with Finance major and Economics minor from San
Jose State University, California. Joined CMS in 2005, Syed is the Group CFO & CMS nominee
representative on KKB Engineering and OM Sarawak.


Tuan Syed Hizam Alsagoff Group Chief Financial officer

Posted by johnny cash > 2014-04-30 14:15 | Report Abuse

Shareholding structure. Collectively, family members of Tan Sri Taib (former Chief
Minister of Sarawak) own approximately 41% of the group, followed by Sarawak
Development Corporation (8%) and Julius Baer (5%). As of latest set of data, foreign
shareholding of the group stands at 17%.

Posted by johnny cash > 2014-04-30 14:16 | Report Abuse

Cahya Mata Sarawak (CMS MK)
Technical Buy on Weakness
Last price: RM9.87
Target Price : 10.85
Support: RM9.20
CMS’s share price has consistently traded above the long-term
trendline over the last five months. Despite rebounding from the
low of RM9.20 on 14 Apr 14, CMS was unable to sustain much
needed momentum in order to test the recent high of RM11.46.
Given the lack of buying interest at the moment as well as the
share price trading below both 10-day and 21-day SMA lines, we
opine that the short-term outlook has a downside bias as the
bearish crossover in Stochastic confirms further correction.
Nevertheless, with the overall trend remaining on the upside, the
weakness ahead should, in our view, be perceived as an
opportunity to accumulate the share at a lower price. We expect
CMS to test the immediate support of RM9.20. Thus, investors are
recommended to accumulate at RM9.20-RM9.50. Upon
normalisation of the selling pressure, CMS should resume trading
towards the long-term uptrend line. Stop-loss can be placed below
RM8.99.

Posted by Eastern_Tea > 2014-04-30 14:59 | Report Abuse

Today DIGI sui sui...

Posted by choop818 > 2014-04-30 16:14 | Report Abuse

Johnny, thanks for your painstaking research on CMSB! Any indications of their venturing off-shore?

Posted by Eastern_Tea > 2014-04-30 19:23 | Report Abuse

Hopefully cmsb can distribute higher dividend...

Posted by johnny cash > 2014-04-30 19:26 | Report Abuse

THIS IS NOT MY RESEARCH BUT UOB KAY HIAN REPORT TODAY ON CMSB.

Posted by Eastern_Tea > 2014-04-30 19:59 | Report Abuse

How good if cmsb thread is active like dsonic...335 pages edi...XD

Posted by 8wpwtmt8 > 2014-04-30 20:31 | Report Abuse

http://www.theedgemalaysia.com/business-news/287578-hot-stock-cmsb-falls-44-after-hsbc-winds-down-banking-business-in-sarawak.html

CMSB fell sharply after after HSBC does not support Taib's linked company in Sarawak anymore. Please share your opinions.

It does not look good for the future of the CMSB shares prices.

Posted by Cweed > 2014-04-30 20:35 | Report Abuse

What about other banks? R they withdrawing support too? How many big international banks exist in Sarawak, anyone knows?

Posted by pang72 > 2014-04-30 21:30 | Report Abuse

Aiya.....HSBC being kick out or pretend dun support?

Posted by johnny cash > 2014-04-30 22:34 | Report Abuse

Changes in Director's Interest (S135)



Wednesday, 30 Apr 2014

7:32PM LIONFIB TAN SRI CHENG HENG JEM (2,669,490 units Transacted)
7:21PM LIONDIV Tan Sri Cheng Heng Jem (60,000,000 units Transacted)
7:15PM HOHUP Datin Chan Bee Leng (1,004,700 units Acquired)
7:14PM HOHUP Low Kheng Lun (1,004,700 units Acquired)
7:03PM SEB Wong Chee Kian (80,000 units Acquired)
7:03PM SEB Wong Choon Cheon (80,000 units Acquired)
7:03PM SEB Wong Poh Chee (80,000 units Acquired)
6:31PM RAYA DEEPAK JAIKISHAN A/L JAIKISHAN REWACHAND (16,000,000 units Disposed)
6:22PM TIGER Tan Lee Chin (3,400,000 units Acquired)
6:22PM TIGER Dato' Tan Wei Lian (3,400,000 units Acquired)
6:09PM LIONFIB TAN SRI CHENG HENG JEM (2,669,490 units Transacted)
6:09PM GOLSTA Dai Kuang Yen (100,000 units Disposed)
6:09PM MKLAND Kasi A/L K L Palaniappan (1,950,200 units Disposed)
5:24PM SUNWAY-WA Tan Sri Dato' Seri Dr Jeffrey Cheah Fook Ling, AO (19,027,298 units Acquired)
5:24PM SUNWAY-WA Sarena Cheah Yean Tih (19,027,298 units Acquired)
5:20PM AJIYA CHAN WAH KIANG (1,304,505 units Acquired)
5:20PM PPG LEE KHENG HON (30,000 units Disposed)
5:14PM KANGER Dato' Paduka Sharipah Hishmah binti Sayed Hassan (1,100,000 units Transacted)
5:14PM GTRONIC Ng Kweng Chong (15,000 units Acquired)
5:14PM CMSB Datuk Syed Ahmad Alwee Alsree (600,000 units Acquired)
5:14PM GTRONIC Ng Kok Khuan (15,000 units Acquired)
5:14PM SUNWAY Tan Sri Dato' Seri Dr Jeffrey Cheah Fook Ling, AO (30,000,000 units Acquired)
5:14PM SCIENTX Lim Peng Cheong (180,000 units Transacted)
5:14PM SUNWAY Sarena Cheah Yean Tih (30,000,000 units Acquired)
5:14PM SALCON Ho Tet Shin (1,300,000 units Transacted)
5:08PM TONGHER Tsai, Hung-Chuan (99,000 units Acquired)
5:08PM TONGHER Tsai Ming Ti (99,000 units Acquired)
1:02PM GADANG TAN SRI DATO' KOK ONN (1,100,000 units Acquired)
12:41PM DSONIC Raghbir Singh A/L Hari Singh (3,000 units Acquired)
12:38PM ECOFIRS Dato' Tiong Kwing Hee (400,000 units Acquired)

Posted by johnny cash > 2014-04-30 22:34 | Report Abuse

5:14PM CMSB Datuk Syed Ahmad Alwee Alsree (600,000 units Acquired)

Posted by LIAUSAN > 2014-05-01 00:33 | Report Abuse

investor .com announce Datuk Syed Ahmad Alwee acquired 600,000 units on 22/04/2014.

Posted by pang72 > 2014-05-01 00:39 | Report Abuse

Only smart director will buy at low
We need to learn

Posted by li1552 > 2014-05-01 11:09 | Report Abuse

So, I think we also be smart and follow them ,buy in low. But, what is the best buy price ?

Posted by ahuat > 2014-05-01 11:34 | Report Abuse

Sarawak companies not affected by HSBC exit
http://www.thestar.com.my/Business/Business-News/2014/05/01/Sarawak-companies-not-affected-by-HSBC-exit/

Posted by bing > 2014-05-01 16:37 | Report Abuse

Still consider a good stock. 9.++ going to challenge this unstable klse.

Posted by OptimusX > 2014-05-01 16:51 | Report Abuse

back to 7.00

Posted by bing > 2014-05-01 16:55 | Report Abuse

Really? Good! Bcos I sold last 2 day.

Posted by Bravo > 2014-05-01 20:39 | Report Abuse

Hi, OptimusX can I know why ? :)

Posted by Bravo > 2014-05-01 20:44 | Report Abuse

Johnny, I read from Bursa, director acquire the shares with esos price at RM2.2. will the price still go up kah?
http://www.bursamalaysia.com/market/listed-companies/company-announcements/1610309

Posted by fishermanship > 2014-05-01 22:23 | Report Abuse

rebound tomorrow

Posted by Cweed > 2014-05-01 23:36 | Report Abuse

http://www.freemalaysiatoday.com/category/nation/2014/04/30/taib-linked-to-money-laundering-in-canada/

Posted by Cweed > 2014-05-02 00:34 | Report Abuse

http://www.theedgemalaysia.com/first/287679-exclusive-hsbc-to-take-1-3-years-to-wind-down-commercial-banking-in-sarawak-fr.html

Posted by 文耀 > 2014-05-02 08:25 | Report Abuse

Lolz....after taib become tyt...only now acc those bad news...lolz...useless dy. . With BN....their business go on as usuall...plus....timber become lesser dy... and all going onto oil palm bisness...

Posted by 8wpwtmt8 > 2014-05-02 15:05 | Report Abuse

With so many negative comments on Taib, is CMSB on the down trend now and no longer a simple price correction? Is CMSB an index linked counter? Anyone knows when the 1st quarter results of 2014 be announced?

Posted by Eastern_Tea > 2014-05-02 20:44 | Report Abuse

If joined early bird with money maker dsonic, after earning then switch to stable cmsb, sui sui lo...

Posted by pang72 > 2014-05-02 23:44 | Report Abuse

Cmsb shall HV another up trend coming....after AGM..

Posted by pang72 > 2014-05-02 23:45 | Report Abuse

This is the final shoot up to 12.2 as we see always...down a lot ....then go up also nonstop

Posted by Eastern_Tea > 2014-05-03 09:32 | Report Abuse

After share split 2:1, bonus issue 1:2, with the TP 12.200, the share price will adjust to 4.070, wish could speed up to 12.000 again in a very short time, then follow by the share split and bonus issues again and again...haha...

Posted by pang72 > 2014-05-03 15:06 | Report Abuse

We still got 10days to wait for realizations. It is exciting.

Posted by kingdomtan888 > 2014-05-03 16:02 | Report Abuse

Pang cmsb still can up?

Posted by 8wpwtmt8 > 2014-05-03 17:00 | Report Abuse

From Investlah forum:

It is wrong for some buggers in the business reports to explain off the slide in price was due to HSBC exit from Sarawak.

Simply. My humble opinion is this CMSB price just went through the roof!! Just last September when I bought it was just RM5.05 per share. It went all the way to RM10.50!! If profit went through the roof that can explain the 100% gain but no! It is plain manipulation. They just announce bonus and split and just push the price to stratosphere just before the announcement. So even at RM7 I believe it is over priced. I sold all and will not look back.

Any comment on this forumer opinion?

Posted by choop818 > 2014-05-03 20:51 | Report Abuse

8wpwtmt8, there is no reason for a second opinion. You should be happy to take profits if you deem it to be overpriced. I would.

Posted by Eastern_Tea > 2014-05-03 21:07 | Report Abuse

Believe that CMSB and DSONIC are ready to rocket soon, enjoy another round of peak again...A bit heart pain and regret for not joining DSONIC due to no money as all in CMSB...CMSB and DSONIC, what a hard choice...Anyway HUAT AH~~~

Posted by Eastern_Tea > 2014-05-04 00:03 | Report Abuse

Looking forward to EGM 15 May 2014 for the share split & bonus issues announcements...can't wait...rocket stock is waiting to shoot up edi...

Posted by pang72 > 2014-05-04 01:25 | Report Abuse

15may14 is our day. It is remarkable day for rocket price.

Posted by Melaos > 2014-05-04 09:11 | Report Abuse

what will happen on 15th may?