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ERC换TRC:CMSB bullish on construction division

admin2022-08-258

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The order book growth will be achieved via the acquisition of new projects from the Sarawak government and CMSB’s joint-venture partner Sarawak State Economic Development Corp (SEDC), according to group managing director Datuk Seri Sulaiman Abdul Rahman Taib.

KUCHING: Cahya Mata Sarawak Bhd (CMSB) is confident its construction division will grow its order book by an average of 80% per year and sustain earnings momentum over the next two years.

The order book growth will be achieved via the acquisition of new projects from the Sarawak government and CMSB’s joint-venture partner Sarawak State Economic Development Corp (SEDC), according to group managing director Datuk Seri Sulaiman Abdul Rahman Taib.

He said the group’s construction division currently has an order book of RM603.6mil and tender book of RM63mil. The construction division completed most of its major projects last year.

CMSB reduced its stake in two subsidiaries – PPES Works (Sarawak) Sdn Bhd and CMS Resources Sdn Bhd – to 49% from 51% after disposing of 2% equity interest to the SEDC in 2020.

Following the deal, PPES Works’ construction and road maintenance activities and CMS Resources’ quarry operations as well as manufacturing and sales of concrete products and premix come under the direct control of SEDC.

CMSB, however, continues to manage the day-to-day operations of PPES and CMS Resources.

“Moving forward, the CMSB group is focused on strengthening its competitive edge by bidding for new projects related to mega infrastructure works in Sarawak.

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“The group also expects other infrastructure projects, such as the upgrading and improvement works of urban roads, to take form in 2022,” said Sulaiman.

He said this in a circular to shareholders on the proposed disposal of the CMSB’s stake in OM Materials (Sarawak) Sdn Bhd (OM Sarawak), which owns a ferroalloy smelting plant at the Samalaju Industrial Park in Bintulu.

CMSB’s wholly-owned subsidiary, Samalaju Industries Sdn Bhd, has proposed to sell its entire 25% equity interest in OM Sarawak and OM Materials (Samalaju) Sdn Bhd to OM Materials (S) Pte Ltd for US$120mil (RM526.6mil).

CMSB is seeking approval from its shareholders on the proposal disposal at an EGM here on Aug 26.

On the group’s construction materials and trading business, Sulaiman said given SEDC’s majority stake in the quarry and premix-related operations, CMSB is on a stronger footing to capture opportunities from the infrastructure development in Sarawak.

This is especially with several mega infrastructure projects underway or in the pipeline including the Pan Borneo Highway and the Autonomous Rapid Transit (ART) under the Kuching Urban Transportation System (KUTS).

SEDC is tasked by the Sarawak government to develop the KUTS via wholly-owned unit Sarawak Metro Sdn Bhd.

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