Latest news with #BCCKII
New Straits Times
22-04-2025
- Business
- New Straits Times
Cahya Mata Sarawak shielded from external disruptions by extensive know-how in large projects
KUALA LUMPUR: Cahya Mata Sarawak Bhd's extensive local expertise in large scale infrastructure projects will mitigate the company from risks associated in the industry such as price fluctuations, labour availability and potential delays. MIDF Research said potential supply chain disruptions arising from global trade uncertainties, specifically related to the ongoing uncertainties surrounding Donald Trump's tariff policies, represent foreseeable headwinds. "Specifically, the potential influx of lower-priced Chinese construction materials, particularly cement, could pose a strategic challenge to local cement manufacturers, such as Cahya Mata Sarawak. "Historically shielded by relatively stable domestic pricing dynamics, local producers could face heightened pricing pressure and market share erosion due to cheaper imports. "This development may compel this company to intensify efficiency initiatives, tighten operational cost controls, or potentially seek protective regulatory interventions to sustain competitiveness and preserve margins," it said in a note. While the immediate impact is slightly negative, MIDF Research noted that Cahya Mata Sarawak's established market presence and integrated supply network offer some resilience against these pressures. However, its vertically integrated business model - comprising subsidiaries such as Cahya Mata Cement, its concrete division, and the construction materials and trading arm - provides a strong foundation for managing supply chain disruptions and material price volatility. It also said that the company is well-equipped to ensure timely project execution and cost control, even amid global trade-related uncertainties, supported by a robust local supply infrastructure and efficient procurement network. On April 21, CMS Land Sdn Bhd received a letter of acceptance from the Sarawak government to undertake the design and construction of the Borneo Convention Centre Kuching II (BCCK II) in Muara Tebas Kuching. Valued at RM550 million, the contract encompasses a comprehensive scope of work, including foundation, substructure, superstructure, mechanical and electrical installations, fit-out works, testing and commissioning. Construction works commence immediately in April, with scheduled completion by the first quarter of 2028. "This latest contract boosts Cahya Mata Sarawak's order book significantly, further improving earnings visibility over the medium term. The RM550 million award will positively impact the group's financial performance from financial year 2025 (FY25) through FY28," it added. MIDF Research maintained a "Buy" call on the stock with a lower target price of RM1.11.
Borneo Post
22-04-2025
- Business
- Borneo Post
Cahya Mata Sarawak secures RM550mln BCCK II contract from state govt, says report
A filing by CMSB with Bursa Malaysia on Monday said the contract was awarded to subsidiary CMS Land Sdn Bhd. KUCHING (April 22): Cahya Mata Sarawak Bhd (CMSB) has secured an RM550 million contract from the Sarawak government for the development of the Borneo Convention Centre Kuching II (BCCK II). According to The Edge, a filing by CMSB with Bursa Malaysia on Monday said the contract was awarded to CMS Land Sdn Bhd, a subsidiary that is 51 per cent owned by Cahya Mata Sarawak, with the remaining 49 per cent held by the Sarawak Economic Development Corporation (SEDC). It said the project includes the design and construction of the convention centre, covering the foundation, structure, mechanical and electrical systems, interior fit-outs, and commissioning. Construction will commence this month, with an anticipated completion in the first quarter of 2028. The formal agreement will be signed in the second quarter of this year. The Edge reported that while global trade uncertainties may cause supply chain challenges, CMS is confident in its ability to manage these risks through synergies with its subsidiaries, such as Cahya Mata Cement and its concrete and construction materials business. It added that the project is expected to positively impact earnings and net assets from 2025 to 2028. According to the Public Works Department Sarawak , BCCK II will be able to accommodate up to 9,500 people. In a Facebook post on April 12, JKR Sarawak said the strategic initiative by the Sarawak government will strengthen Kuching's role as a major hub for conventions and international events in the region. When announcing plans to develop BCCK II, Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg said the new building next to the current BCCK will be able to host a combined 15,000 visitors at one time.
New Straits Times
21-04-2025
- Business
- New Straits Times
Cahya Mata wins RM550mil Kuching convention centre deal
KUALA LUMPUR: Cahya Mata Sarawak Bhd has bagged a RM550 million contract from the Sarawak state government for the development of Borneo Convention Centre Kuching II (BCCK II) in Muara Tebas, Kuching. In its filing with Bursa Malaysia today, Cahya Mata said its subsidiary, CMS Land Sdn Bhd has received and executed a letter of acceptance from the Sarawak state government for the project. "The project includes the design and construction of the convention centre, covering the foundation, structure, mechanical and electrical systems, interior fit-outs, and commissioning," it said. Construction is set to begin this month, with completion targeted for the first quarter of 2028. The formal agreement will be signed in the second quarter (Q2) 2025. While global trade uncertainties may pose supply chain challenges, Cahya Mata is confident in its ability to manage these risks through synergies with its subsidiaries including Cahya Mata Cement and its concrete and construction materials business. The project is expected to contribute positively to earnings and net assets between 2025 and 2028, it added.
