CMS Sponsors Sarawak Regatta 2013
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COVERSTORY THE GOLDEN BRIDGE PROJECT Bridging North and South Kuching The Golden Bridge project officially launched Once completed, the Golden Bridge will help by the Chief Minister of Sarawak, YAB Pehin Sri spur economic growth and social integration by Abdul Taib Mahmud on 20 August 2013 at the connecting the North and South of Kuching city. new Dewan Undangan Negeri Sarawak (DUN) It will enhance the aesthetic value of the city building will be a stunning new addition to and add character and contribute to the soul of Kuching City. the city. Furthermore, the bridge will become an integral part of the Halaman Heritage Trail, Complementing the Sarawak River, the allowing easy access to Kuching’s historical sites. architecture of the Golden Bridge has been executed with beauty, harmony and balance Construction on the Bridge will in mind reflecting Sarawak where people of commence in the 4Q 2013 and diversified races and cultures pull together to is expected to complete within sustain a harmonious and prosperous society. 24 months at a cost of RM35 million. The S-shaped bridge which is inspired by the meandering rivers of Sarawak would be able The Sarawak Economic to accommodate pedestrians, buggies and the Development Corporation is disabled. Its North Bank approach is located implementing the project for near the new DUN building while the South Bank the Sarawak Government with approach is sited at the current viewing tower the consortium of PPES Works near the Charles Brooke Memorial along the (Sarawak) Sdn Bhd and Naim Land Sdn Bhd as iconic Kuching Waterfront. the project contractor. 2 OurCMS May-Aug COVERSTORY THE GATEWAY TOWERS SEDC AND LCDA New HQ Buildings On 29 August 2013, CMS Land Sdn Bhd in joint by the curved open palm like shapes of the two venture with Sarawak Economic Development buildings. Both buildings will be Green Building Corporation (SEDC) launched The Gateway Index-certified, as is the adjoining Sarawak Towers project which comprises of two Energy Bhd headquarters building. prestigious headquarter buildings for SEDC and Land Custody and Development Authority Anticipated to be completed in 24 months’ time, (LCDA), poised to be iconic additions to the estimated project cost of each building Kuching’s new 274-acre central business district including land cost is RM76 mil. (CBD) extension at The Isthmus. This marks another big step for CMS Land The unique river island location of The Isthmus is towards realizing the State’s dream to see complemented with easy access to both Central, a well-planned Green CBD extension at South and North Kuching thanks to recent road The Isthmus. Already in the pipeline are improvements. several other major projects slated soon for announcement and construction which The 11-storey Gateway Towers are located at will further open everyone’s eyes to the the main entry bridge to The Isthmus. Visitors attractiveness of The Isthmus whether for work, will be symbolically welcomed into The Isthmus living, shopping, sports or recreation. OurCMS May-Aug 3 Q U A RT E R LY R E S ULT S CMS NEWS FLASH 2Q pre-tax profit up 26% to RM68.81million On 30 August 2013, Cahya Mata Sarawak Berhad commence operations, reported a marginal loss reported a revenue of RM338.33 million for its which arose from loss on foreign exchange. 2Q13, a 16% increase from the preceding year’s corresponding quarter’s revenue of RM292.20 Commenting on the results, Dato’ Richard Curtis, million. The Group’s PBT of RM68.81 million is Group Managing Director said, “We are very 26% higher than the PBT of RM54.81 million, pleased with the 2Q13 figures as they are further reported in the first quarter ended 31 March testament to the Group’s sound business models, 2013 (1Q13) although it declined marginally the efforts of our Board and all our staff and by 2% compared to PBT of 2Q12 at RM70.11 our ability to take advantage of opportunities million. afforded by Sarawak’s growing economy. Significant achievements have been recorded Year-on-year, the Group’s PATNCI of RM68.74 namely by the Cement, Construction Materials & million for the current six-month period Trading, Construction & Road Maintenance and (PE2013) is 12% lower than RM78.44 million for the Samalaju Development Divisions which saw the previous year’s six-month period (PE2012). robust rises year-on-year in PBT by 16%, 129%, Earnings per share stood at 20.99 sen versus 13% and 61% respectively. The outlook for the 23.80 sen from the corresponding six-month rest of 2013 remains positive and the Group period of last year. expects its financial performance to be good for the full 2013 year. The Group’s strong financial The higher profit in PE2012 was due mainly to position will enable the Group to invest both the recognition of the profit for a land sale in in its core business divisions as well as in new Bandar Samariang. business opportunities arising especially under the Sarawak Corridor for Renewable Energy The Cement Division however recorded a 16% (SCORE), which will lead to long term profits higher PBT of RM45.19 million in PE2013 over growth. PE2012’s PBT mainly due to the turnaround of CMS Clinker since March 2013 following the “CMSB is on track to be the best proxy successful re-commissioning of its upgraded investment for Sarawak’s accelerating economic clinker plant. potential, driven by the State’s plan to develop long term, hydro energy intensive industries The Construction Materials & Trading Division under SCORE and infrastructure required across reported a strong PBT for PE2013 (RM24.63 the State, which are set to propel the State’s million) which exceeded PE2012’s PBT by economy and GDP to new heights”. 129%. The Road Maintenance and Samalaju Development Divisions also reported “CMSB’s 20% stake in the joint venture ferro higher revenues and PBT compared to the silicon and manganese alloys smelter project corresponding six-month period of last year. with Australian listed OM Holdings Ltd, plus other investments in energy intensive industries The Group has recorded lower shares of profit being evaluated are poised to grow and drive up from its associates in PE2013 compared to shareholder value. Our healthy balance sheet, PE2012 due to a loss recorded by K&N Kenanga local knowledge, experienced management Holdings Berhad in PE2013. However, the team and synergised portfolio of Sarawak based decline was partially mitigated by a higher businesses will further enable us to maximise profit registered by KKB Engineering Berhad in our participation in the Sarawak growth story” PE2013. said Dato’ Curtis. OM Materials (Sarawak) Sdn Bhd, which has The Board of Directors has declared an interim a ferro silicon and manganese alloy smelter dividend of five (5) sen less 25% tax per under construction in Sarawak and has yet to ordinary share in respect of this financial year. 4 OurCMS May-Aug AWARD S CMS Group Chairman receives BrandLaureate Award 31 May 2013 CMS Group Chairman, Tan Sri Syed Anwar Syed Putra Jamalullail Tunku Syed Putra was honoured to receive the BrandLaureate Top 10 Man of the Year award from Asia Pacific Brands Foundation president Dr K.K. Johan, in recognition of his contribution to the growth of the country’s economy. largest investment bank in future growth prospects. This CMS Malaysia in terms of assets and also implies that CMS Group the largest brokerage by value would be under the radar of crowned and volume. almost every broking house in Malaysia, who would be RHB’s The event was an initiative keenly glancing at our financial by the RHBIB to showcase to performances every quarter so their investors the top range we truly need to work together Top 5 of Small Cap companies from to ensure we consistently show Bursa Malaysia and help them sustainable growth across all Small Cap make informed decisions after our Business units. finalising a comprehensive economic, equity and debt The other 4 companies to Companies market research coverage by also receive the accolade their economists and analysts. were Instacom Group Bhd award Their team of market-savvy (Sarawak), Tambun Indah researchers provide financial Land Bhd (Penang), Brahim’s analysis, credit opinions, and Holdings Bhd (Kuala Lumpur) Our Group was crowned by RHB business prospects to help their and Wellcall Holdings Bhd Investment Bank (RHBIB) as clients in making decisions (Ipoh). Amongst the other 25 Top 5 Small Cap Company in with their funds. The definition Top Small Cap Companies was Malaysia at the Westin Hotel, of Small Cap can vary among KKB Engineering Bhd whose Kuala Lumpur on 30 July 2013. brokerages, but generally it strong growth over the last few The event was in conjunction is a company with a market years has had them long on the with RHB Research’s book capitalisation of between radar screen of investors. launch of Top 30 Small Cap RM300 million and RM2 billion. Companies in Malaysia. Our GMD, Dato’ Richard Curtis This was an important occasion was in attendance to receive for the Group as the gesture the award on behalf of the by RHB is highly noteworthy Group and deliver a corporate and significant. RHBIB has presentation to a crowd of 100 maintained that the CMS people consisting of Business Group has solid fundamentals, Analysts and Fund Managers. strong balance sheet and an RHBIB is one of the leading experienced Management investment banks in Malaysia Team and it was inevitable for and with the recent merger of their stock price to increase OSK Investment Bank, RHBIB as the Group has grown its is now the revenues and earnings over time and the public has become more aware of its existence and OurCMS May-Aug 5 E VENT S CMS Works buys newly launched WR 240 12 July 2013 ITC Programme CMS Works Sdn Bhd became the first customer of the Kicks-Off recently launched Wirtgen WR 240 cold recycler and soil “With this stabilizer paving the way for product we improved road construction can service our and maintenance in Sarawak clients better, with its impressive all round faster and to a performance for the heavy duty higher quality ” stabilisation of large areas of non-cohesive soil, and for the conservative cold Mr Teo Khing Tnia, General Manager of CMS recycling of damaged asphalt layers.