KUALA LUMPUR (Aug 24): Cahya Mata Sarawak Bhd (KL:CMSB) has pushed back the commissioning of its Samalaju yellow phosphorus plant following equipment breakdowns during the testing phase, as it reported a return to profitability in its second quarter.

Anticipated commercialisation of the facility, which will be Malaysia’s first production plant for the chemical used in high-value industrial applications, has been pushed back to the fourth quarter, the diversified group said in a statement on Monday.

“Reactivating an idle facility of this scale has introduced unexpected mechanical issues, necessitating longer lead times to ensure the plant is fully stable and fit for purpose,” it said.

The plant, which was being test-commissioned in late 2022, had been forced to sit idle for over two years after state utility Syarikat SESCO cut power supply over a contractual dispute in July 2023.

After Syarikat SESCO agreed to reconnect power in September 2025, the group resumed testing and commissioning. It previously targeted wrapping up commissioning in the second half of 2026, with initial commercial yellow phosphorus production expected by the third quarter.

Meanwhile, the group announced a net profit of RM22.44 million for its second quarter ended June 30, 2026 (2QFY2026) as opposed to a net loss of RM11.32 million for 2QFY2025, thanks to stronger profitability at its cement and property development businesses, improved contribution from its road maintenance unit and narrower losses at its phosphates segment.

Revenue for the quarter rose 18.2% to RM291.97 million from RM246.92 million on higher cement sales, and increased property development topline amid continued construction progress on the Borneo Convention Centre Kuching 2 (BCCK2) project, partly moderated by lower oiltools revenue as rig activities across most of its operating markets declined.

Beyond improved revenue, bottomline was further helped by gross margin edging up to 27.5% from 26.3%, positive other expenses and a small forex gain versus a hefty forex loss on financing activities in 2QFY2025. 

For the cumulative six months, net profit more than tripled year-on-year to RM46.52 million, while revenue rose 15.7% to RM570.43 million.

No dividend was declared with the latest earnings announcement. 

CMSB further said construction of the Mambong Clinker Line 2 under its cement unit remains on track for completion by the second quarter of 2027, while construction of the RM550 million BCCK2 project is progressing ahead of schedule, with construction targeted for completion in March 2028.

CMSB shares closed one sen higher at RM1.01 on Monday, valuing the group at RM1.09 billion.