KUALA LUMPUR (May 25): Cahya Mata Sarawak Bhd (KL:CMSB) reported a 5% year-on-year decline in first quarter net profit, mainly due to the inclusion of a one-off tax credit of RM7.3 million previously.
Net profit for the three months ended March 31, 2026 (1QFY2026) fell to RM24.1 million from RM25.3 million in the same period last year, according to the group’s Bursa Malaysia filing on Monday.
Revenue, however, rose more than 13% to RM278.5 million from RM246.1 million, driven by stronger infrastructure activity in Sarawak.
The group said its cement business segment recorded a 12.5% increase in revenue while the construction materials and trading division's revenue surged 192.5% amid stronger project activity in the region.
The property development segment also posted a higher revenue, underpinned by construction progress on the RM550 million Borneo Convention Centre Kuching 2 (BCCK2) project.
However, gains were partially offset by a 3.1% decline in the road maintenance division due to lower completion of instructed works during the quarter.
The oiltools segment saw revenue fall 45.7%, mainly due to completed contracts and reduced rig activity across most operating markets.
CMSB did not declare any dividend for the quarter.
On prospects, the group said it is monitoring market conditions as the conflict in West Asia has pushed up costs for raw materials, logistics and diesel, weighing on margins for its infrastructure-related strategic business units.
CMSB said it is implementing mitigation measures where possible to manage cost pressures and protect margins.
It added that construction of BCCK2 is progressing on schedule, with completion targeted for March 2028, while the Mambong Clinker Line 2 is also on track for completion and commercial rollout in 2027.
Meanwhile, testing and commissioning works for its phosphates business segment are ongoing, with the first and second furnaces successfully commissioned in January and April respectively. Commercial production of yellow phosphorus is expected to begin in September.
CMSB shares closed unchanged at RM1.12 on Monday, giving the group a market capitalisation of RM1.2 billion.