Cahya Mata Sarawak Berhad Q1 2026 Financial Results: Revenue Growth, Segment Performance, and Outlook

Cahya Mata Sarawak Berhad (CMSB) Posts Strong Performance in Q1 2026: Key Insights for Investors

Cahya Mata Sarawak Berhad (CMSB) has released its interim financial report for the quarter ended 31 March 2026, revealing robust revenue growth and notable developments across its business units. Here’s an in-depth analysis for investors and shareholders:

1. Financial Highlights & Performance Drivers

Revenue: CMSB recorded RM278.5 million in revenue for Q1 2026, up 13% from RM246.1 million in Q1 2025. This growth was driven by improved sales across most Strategic Business Units (SBUs), with the exception of Oiltools and Support Services.
Profit Before Tax (PBT): PBT increased 27% to RM34.2 million from RM26.9 million last year. The higher PBT was attributed to better SBU performance and increased joint venture contributions.
Net Profit Attributable to Owners: Despite the strong PBT, net profit attributable to owners declined 5% to RM24.1 million, mainly due to higher income tax expenses and losses in non-controlling interests.
Earnings Per Share: Basic EPS was 2.24 sen (down from 2.36 sen), and diluted EPS stood at 2.23 sen.
Net Assets Per Share: RM3.19, up from RM3.16 at year-end 2025.
Cash Position: Cash and bank balances decreased sharply to RM585.5 million from RM750.8 million, with cash and cash equivalents at RM504.3 million (down from RM667.3 million a year ago).

2. Segmental Analysis

Cement SBU: Revenue rose to RM161.1 million (+12%). PBT increased to RM41.0 million (+11%), benefiting from increased sales volume and strategic price adjustments, as well as lower production costs.
Road Maintenance SBU: Revenue fell to RM41.3 million (-3%), but PBT increased to RM7.1 million (+1%) due to efficient cost management despite lower work completions.
Property Development SBU: Revenue surged to RM37.3 million (+341%), with PBT at RM4.7 million. This was driven by major construction contracts, notably the Borneo Convention Centre Kuching 2.0 project, progress at Cahya Intan Phase 2, and sales of completed properties.
Phosphates SBU: Loss before tax narrowed to RM27.5 million (from RM31.0 million), thanks to inventory accounting and reduced unrealised forex losses.
Oiltools SBU: Revenue dropped to RM23.5 million (-46%), with a loss before tax of RM1.2 million (down from a profit of RM4.2 million). Lower rig activities across markets were the main cause.
Construction Materials & Trading SBU: Revenue soared to RM34.6 million (+192%), driven by higher trading activities.
Strategic Investments SBU: PBT grew to RM3.0 million, mainly from fair value gains in investment securities.

3. Balance Sheet & Cash Flow

Total Assets: RM4.58 billion (down from RM4.64 billion at year-end 2025).
Total Equity: RM3.62 billion, an increase from RM3.60 billion.
Loans and Borrowings: RM224.1 million (slightly down from RM227.7 million), including RM42.8 million in non-Ringgit Malaysia denominated loans.
Operating Cash Flow: Net cash used was RM108.1 million compared to a positive RM39.1 million in Q1 2025. Investing activities saw a net outflow of RM69.1 million, mainly due to property, plant, and equipment acquisitions.

4. Corporate Actions & Material Developments

Share Capital: The company issued 644,000 new shares through Employee Share Option Scheme (ESOS) during the period. CMSB holds 200,000 treasury shares.
Corporate Proposal Proceeds: Following a major asset disposal in 2022 (USD120 million), CMSB has utilised most proceeds for capital expenditure, working capital, and estimated expenses. The balance for future acquisitions/investments stands at RM63.4 million, with the Board extending the utilisation period to 48 months.
Material Litigation: Significant legal dispute involving CMSB subsidiary Cahya Mata Intelligent Technologies and Vienna Advantage GmbH. The dispute centers on ERP system implementation, with VAG counterclaiming for damages, costs, and alleging breach of settlement agreement. Case management is set for 15 June 2026. This ongoing litigation could pose potential risks and uncertainties for CMSB.

5. Prospects & Strategic Projects

Market Risks: The report highlights that the recent Middle East conflict has increased costs for raw materials, logistics, and diesel, impacting the margins of infrastructure-related SBUs. Heightened geopolitical risks are likely to add cost uncertainty.
Major Projects:
- Borneo Convention Centre Kuching 2.0: RM550 million project progressing on schedule; completion expected by March 2028. Strategic for Sarawak’s international conventions and exhibitions.
- Mambong Clinker Line 2: On track for commercial rollout in 2027, enhancing cement production capacity.
- Phosphates SBU: First and second furnaces commissioned in Jan and Apr 2026 respectively; Yellow Phosphorus commercialisation expected in September 2026.

6. Other Noteworthy Points

No Dividend Declared: CMSB did not declare any interim dividend for Q1 2026.
Tax Expense: Effective tax rates remain higher than statutory rates due to pre-commencement and unrecognised losses in certain subsidiaries.
Fair Value Hierarchy: Investment securities include RM62.0 million in equity instruments (Level 1) and RM53.9 million in redeemable preference shares (Level 3).
Capital Commitments: CMSB has contracted and approved commitments totaling over RM1.16 billion, primarily for property, plant, equipment, and joint venture capital commitments.
No profit guarantee or forecast issued.

7. Potential Price Sensitive Issues

Material Litigation: The ongoing legal dispute with Vienna Advantage GmbH and related parties may have reputational and financial impacts depending on the outcome. Investors should monitor this closely.
Project Progress: Strategic projects like BCCK2 and Mambong Clinker Line 2 are significant for future revenue and margin growth, but any delays or cost overruns could impact share value.
Geopolitical Risks: Rising costs due to global conflicts could affect margins and future profitability.
Cash Flow Weakness: The sharp decline in operating and investing cash flows may raise questions about liquidity and capital management.
No Dividend: Absence of dividend payment could affect sentiment among income-focused investors.

Conclusion

CMSB’s Q1 2026 results show strong top-line growth, improved profitability, and progress on strategic projects, but with challenges including litigation risks, rising costs, and reduced cash balances.
Shareholders should closely monitor the outcomes of ongoing legal cases, geopolitical cost pressures, and the progress of major projects, all of which could materially impact CMSB’s share price.

Disclaimer: This article is prepared for informational purposes only and does not constitute financial advice or an offer to buy or sell securities. Investors are advised to conduct their own due diligence and consult with professional advisors before making investment decisions. The information reflects data available as of the time of writing and may change as new developments arise.

Versi Bahasa Malaysia

Cahya Mata Sarawak Berhad (CMSB) Catat Prestasi Kukuh pada Suku Pertama 2026: Sorotan untuk Pelabur

Cahya Mata Sarawak Berhad (CMSB) telah mengumumkan laporan kewangan interim bagi suku berakhir 31 Mac 2026, menunjukkan pertumbuhan hasil yang kukuh dan perkembangan penting dalam unit perniagaannya. Berikut adalah analisis terperinci untuk pelabur dan pemegang saham:

1. Sorotan Kewangan & Pemacu Prestasi

Hasil: CMSB mencatatkan RM278.5 juta hasil untuk Q1 2026, meningkat 13% berbanding RM246.1 juta pada Q1 2025. Pertumbuhan ini didorong oleh peningkatan jualan di kebanyakan Unit Perniagaan Strategik (SBU), kecuali Oiltools dan Support Services.
Untung Sebelum Cukai: Untung sebelum cukai meningkat 27% kepada RM34.2 juta daripada RM26.9 juta tahun lalu, disebabkan prestasi lebih baik SBUs dan sumbangan lebih tinggi daripada usaha sama.
Untung Bersih Milik Pemilik: Walaupun untung sebelum cukai kukuh, untung bersih milik pemilik menurun 5% kepada RM24.1 juta, terutamanya akibat cukai pendapatan lebih tinggi dan kerugian dalam kepentingan bukan kawalan.
Pendapatan Sesaham: EPS asas ialah 2.24 sen (turun dari 2.36 sen), EPS cair ialah 2.23 sen.
Aset Bersih Sesaham: RM3.19, naik dari RM3.16 pada akhir tahun 2025.
Kedudukan Tunai: Tunai dan baki bank turun mendadak kepada RM585.5 juta dari RM750.8 juta, dengan tunai dan setara tunai pada RM504.3 juta (turun dari RM667.3 juta tahun lalu).

2. Analisis Segmen

SBU Simen: Hasil meningkat kepada RM161.1 juta (+12%). Untung sebelum cukai naik kepada RM41.0 juta (+11%) disokong oleh jualan lebih tinggi dan pelarasan harga strategik serta kos pengeluaran yang lebih rendah.
SBU Penyelenggaraan Jalan: Hasil turun kepada RM41.3 juta (-3%), tetapi untung sebelum cukai naik kepada RM7.1 juta (+1%) kerana pengurusan kos yang cekap walaupun kerja siap kurang.
SBU Pembangunan Hartanah: Hasil melonjak kepada RM37.3 juta (+341%), untung sebelum cukai RM4.7 juta. Didorong kontrak pembinaan utama, terutamanya projek Borneo Convention Centre Kuching 2.0, kemajuan Cahya Intan Fasa 2, dan jualan hartanah siap.
SBU Fosfat: Kerugian sebelum cukai mengecil kepada RM27.5 juta (dari RM31.0 juta), terima kasih kepada perakaunan inventori dan pengurangan kerugian forex belum direalisasi.
SBU Oiltools: Hasil turun kepada RM23.5 juta (-46%), kerugian sebelum cukai RM1.2 juta (turun dari untung RM4.2 juta). Aktiviti pelantar yang kurang menjadi punca utama.
SBU Bahan Binaan & Perdagangan: Hasil melonjak kepada RM34.6 juta (+192%), didorong aktiviti perdagangan lebih tinggi.
SBU Pelaburan Strategik: Untung sebelum cukai meningkat kepada RM3.0 juta, terutamanya daripada keuntungan nilai saksama sekuriti pelaburan.

3. Kunci Kira-kira & Aliran Tunai

Jumlah Aset: RM4.58 bilion (turun dari RM4.64 bilion akhir tahun 2025).
Jumlah Ekuiti: RM3.62 bilion, meningkat dari RM3.60 bilion.
Pinjaman & Pembiayaan: RM224.1 juta (sedikit turun dari RM227.7 juta), termasuk RM42.8 juta pinjaman bukan denominasi Ringgit Malaysia.
Aliran Tunai Operasi: Aliran tunai bersih digunakan RM108.1 juta berbanding positif RM39.1 juta pada Q1 2025. Aktiviti pelaburan keluar bersih RM69.1 juta, terutamanya pembelian aset tetap.

4. Tindakan Korporat & Perkembangan Penting

Modal Saham: Syarikat mengeluarkan 644,000 saham baru melalui ESOS sepanjang tempoh. CMSB memegang 200,000 saham perbendaharaan.
Proceeds Proposal Korporat: Selepas pelupusan aset utama pada 2022 (USD120 juta), CMSB telah menggunakan majoriti hasil untuk perbelanjaan modal, modal kerja, dan perbelanjaan dianggarkan. Baki untuk pemerolehan/ pelaburan masa depan ialah RM63.4 juta, dengan tempoh penggunaan dilanjutkan kepada 48 bulan.
Litigasi Material: Tuntutan undang-undang melibatkan anak syarikat CMSB, Cahya Mata Intelligent Technologies dan Vienna Advantage GmbH mengenai pelaksanaan sistem ERP. VAG menuntut ganti rugi dan mendakwa pelanggaran perjanjian penyelesaian. Pengurusan kes ditetapkan pada 15 Jun 2026. Litigasi ini boleh menimbulkan risiko kewangan dan reputasi kepada CMSB.

5. Prospek & Projek Strategik

Risiko Pasaran: Konflik di Timur Tengah meningkat kos bahan mentah, logistik, dan diesel, menjejaskan margin SBUs berkaitan infrastruktur.
Projek Utama:
- Borneo Convention Centre Kuching 2.0: Projek RM550 juta berjalan mengikut jadual, siap dijangka Mac 2028.
- Mambong Clinker Line 2: Dijangka mula operasi komersil pada 2027, meningkatkan kapasiti pengeluaran simen.
- SBU Fosfat: Furnace pertama dan kedua telah dikomisen pada Jan dan Apr 2026; komersialisasi Yellow Phosphorus dijangka September 2026.

6. Perkara Penting Lain

Tiada Dividen Diumumkan: Tiada dividen interim diumumkan untuk Q1 2026.
Cukai: Kadar cukai efektif kekal lebih tinggi daripada kadar statutori disebabkan kerugian belum diiktiraf di sesetengah anak syarikat.
Hierarki Nilai Saksama: Sekuriti pelaburan termasuk RM62.0 juta instrumen ekuiti (Level 1) dan RM53.9 juta saham keutamaan boleh tebus (Level 3).
Komitmen Modal: Komitmen kontrak dan diluluskan melebihi RM1.16 bilion, terutamanya untuk aset tetap dan usaha sama.
Tiada jaminan atau ramalan keuntungan dikeluarkan.

7. Isu Berpotensi Sensitif Harga

Litigasi Material: Tuntutan undang-undang dengan Vienna Advantage GmbH boleh memberi impak kewangan dan reputasi bergantung pada hasilnya.
Kemajuan Projek: Projek strategik seperti BCCK2 dan Mambong Clinker Line 2 penting untuk pertumbuhan hasil dan margin, sebarang kelewatan atau kos berlebihan boleh menjejaskan nilai saham.
Risiko Geopolitik: Kos meningkat akibat konflik global boleh menjejaskan margin dan keuntungan masa depan.
Kelemahan Aliran Tunai: Penurunan ketara aliran tunai operasi dan pelaburan boleh menimbulkan persoalan tentang kecairan dan pengurusan modal.
Tiada Dividen: Ketiadaan dividen boleh menjejaskan sentimen pelabur yang fokus kepada pendapatan.

Kesimpulan

CMSB menunjukkan pertumbuhan hasil dan untung yang kukuh serta kemajuan projek strategik, namun berdepan cabaran litigasi, kos meningkat, dan baki tunai yang menurun.
Pemegang saham perlu memantau perkembangan kes undang-undang, tekanan kos geopolitik, dan kemajuan projek utama yang boleh memberi impak material kepada harga saham CMSB.

Penafian: Artikel ini disediakan untuk tujuan maklumat sahaja dan tidak merupakan nasihat kewangan atau tawaran membeli atau menjual sekuriti. Pelabur dinasihatkan membuat penilaian sendiri dan berunding dengan penasihat profesional sebelum membuat keputusan pelaburan. Maklumat adalah berdasarkan data semasa penulisan dan boleh berubah mengikut perkembangan baru.