OM Sarawak, a 75:25 joint venture between ASX-listed OM Holdings Ltd and Cahya Mata Sarawak Bhd, has set aside A$20mil (RM57.6mil) as capital expenditure for the construction of the sinter plant with auxilliary facilities, a laboratory, offices and canteen
KUALA LUMPUR: Maybank Investment Bank Research is positive on the 12-month extension for Cahya Mata Sarawak’s (CMS) state road maintenance concession in Sarawak as it would alleviate the earnings overhang, especially with the concession ending on June 30, 2018.
It said on Tuesday it does not discount the possibility of CMS securing a new longer term concession once the proposed new road management and maintenance system for the 30,000km of Sarawak State roads has been set up.
“No change to our earnings forecasts and realised net asset value based TP of RM4.10,” it said.
To recap, CMS unit CMS Roads Sdn Bhd (CMSR) had on June 14 accepted a letter from the Sarawak State Government for the extension of its current state road maintenance concession for another 12 months from July 1, 2018 to June 30, 2019.
“We believe the contract sum of RM180mil for the 12 months period is based on existing terms.
Recall that CMSR was granted a six month extension of its State road maintenance concession from Dec 31, 2017 to June 30, 2018.
CMS believes that the 12 month extension will allow the State Government to develop a comprehensive road management and maintenance system for the total 30,000km of State roads in Sarawak, of which only 6,000km (1/5th) is currently being maintained by CMSR.
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