New RHB TP : RM5.00

We hosted a group visit to CMS’ operation in Samalaju. Its OMS is now at progressive commissioning stage and its phosphate project under MPA is making good progress – both are set to enjoy attractive power tariffs at SCORE. We expect its property development in Samalaju toreach a larger scale and be completed earlier than expected. Maintain BUY with a higher SOP-based TP of MYR5.00, implying a 16.6% upside.
 Ground zero at Samalaju. Early this week, we hosted a small group site visit to Cahya Mata Sarawak’s (CMS) operation in Samalaju, Sarawak. Besides visiting its property site at Samalaju Industrial Park (SIP) and the workers’ camp, we are proud to be the first group of investors who had the opportunity to witness the commissioning of the first ferrosilicon furnace owned by its 20%-owned OM Materials (Sarawak) (OMS).
 All set to SCORE. The Sarawak Corridor of Renewable Energy’s(SCORE) key advantage is the availability of attractive power tariffs. Phase 1 of OMS’ power-intensive smelter is entering progressive commissioning stage – the first furnace has just commissioned and the company is heating up the second one. Meanwhile, CMS’ Malaysian Phosphate Additives SB (MPA) project is also progressing well, while its 51%-owned Samalaju Property Development SB (SPD) may offer some upside. We believe that the earnings decline at the latter’s workers’ lodge may be mitigated by its property developments in Samalaju , for
which we expect to reach a larger scale and be completed earlier than originally expected.
 Cement unit the immediate catalyst. We continue to like CMS’ tight grip on Sarawak’s cement market, thanks to its logistics prowess. Management expects the cement unit to post a strong performance this year, especially after CMS raised its selling prices in mid-February. The group is also in the midst of installing a brownfield 1m tonne/annum (tpa) grinding plant next to its clinker facility.
 BUY with a higher MYR5.00 TP. Investors who joined us on the trip aregenerally receptive to CMS’ businesses. The group’s huge cash pile also allows it to take on projects with attractive returns in SCORE or others, which may boost its future earnings. Maintain BUY with our SOP-based TP raised to MYR5.00 (from MYR4.85), as we lifted the DCF value of its OMS project.

Don't understand. Despite of good new still price drop. Any other news?