Broker Name: Maybank Investment Bank Berhad
Date of Report: November 25, 2025
Excerpt from Maybank Investment Bank Berhad report.
Report Summary
- Cahya Mata Sarawak (CMS) reported 3Q25 and 9M25 results that underperformed expectations, mainly due to higher-than-expected pre-operating costs in its phosphate segment and reduced rig activities affecting the oiltools segment.
- Despite the earnings miss, Maybank maintains a BUY call and a target price of MYR1.66, anticipating that the commissioning of its phosphate plant in September 2025 will narrow losses and potentially turn the segment profitable from 4Q25 onwards.
- The cement and road maintenance segments showed quarter-on-quarter recovery after being affected by wetter weather earlier in the year, while property development is expected to benefit from the MYR550m Borneo Convention Centre Kuching II project.
- CMS remains in a net cash position, with its diversified operations in cement, construction materials, road maintenance, oiltools, and property development positioning it as a key proxy for Sarawak’s infrastructure growth.
- Key upside risks include the roll-out of major infrastructure projects and a positive resolution to legal disputes relating to the phosphate business, while downside risks involve competition, project delays, and raw material price volatility.
above is an excerpt from a report by Maybank Investment Bank Berhad. Clients of Maybank Investment Bank Berhad can be the first to access the full report from the Maybank Investment Bank Berhad website : www.maybank.com/investment-banking
