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.
Sarawak's state election is in early 2016. If BN wins big, sure CMSB wll rally. Start collecting on weakness as US interest rise throughout October 2014 - end of 2015.
Yes I know. The big fish is EPF. The imminent rise of US interest rate will pull down the whole market. No counter can fight against this gravity. Just now I put buy at 4.20. Cannot get never mind. Still got 1 and a half year time to election. Drop buy, drop buy. This CMSB is the king share of Sarawak. RM5 target price of RHB research no problem to strike.
Congrats to those who bought in low. Lowest was 4.11. Late afternoon, after rallying back past 4.25, there was a bottom barrier at Buy Q 4.20 of 4400 lots from only 11 bids (EPF?).
The way it was moving between prices very quickly looks like tell-tale signs of EPF at work. The movers were in the mood to unload that's for sure. I picked up some at 4.10 and more at 4.05 to maintain my average cost.
It will further drop again on next Monday as Dow Jones Index and Germany Stock Index dropped 115 points and 216 points respectively last night. I have cut half of the share. Dow Jones Index is also just break the 200 days moving average. Beware on the world stock market index.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
Johann5354
174 posts
Posted by Johann5354 > 2014-09-08 17:31 | Report Abuse
Got strong buyer keep buy the stock?