Cahya Mata Sarawak swings back to black in Q2

KUALA LUMPUR: Cahya Mata Sarawak Bhd returned to profitability in the second quarter (Q2) ended June 30, 2026, as improved cement and property development revenue outweighed lower Oiltools sales. Net profit rose to RM22.4 million, up from a loss of RM11.3 million in the same period last year. Revenue increased 18.2% to RM292.0 million, primarily due to stronger cement sales and progress on the RM550 million Borneo Convention Centre Kuching 2 project.

However, weaker Oiltools sales, due to reduced rig activity, partially offset the gains. For the six months of FY26, net profit more than tripled to RM46.5 million, while revenue grew 15.7% to RM570.4 million. Cahya Mata remains cash positive, with RM506.8 million in cash and bank balances against RM315.6 million in borrowings, and a gearing ratio of 0.11 times.

The company's Sarawak-focused infrastructure development remains a key driver of its outlook, supported by ongoing projects and a strong pipeline of industrial, commercial, and residential developments. The Borneo Convention Centre Kuching 2 project is ahead of schedule, with completion expected by March 2028, and the Mambong Clinker Line 2 is on track for completion in the second quarter of 2027, which will eliminate reliance on imported clinker.

The company's concrete business is also expanding, with market share nearly doubling year-on-year as it increases its ready-mixed concrete and precast capabilities. However, the commercialization of its Yellow Phosphorus facility has been delayed until the fourth quarter of 2026 due to unexpected mechanical issues discovered during testing and commissioning.

Once operational, it will be Malaysia's only Yellow Phosphorus producer, serving global customers across various industries.