KUALA LUMPUR, Cahya Mata Sarawak Bhd said the Sarawak Economic Development Corporation (SEDC) is no longer a substantial shareholder after disposing of 1.62 million shares in the open market on Oct 9.
Following the sale, SEDC’s stake in the Sarawak-based conglomerate dropped to 4.97%, below the 5% threshold that defines a substantial shareholding under Bursa Malaysia’s listing rules. SEDC — the state’s development and investment agency — had been gradually reducing its holdings in CMSB since March this year, when its stake stood at 5.67%.
SEDC’s involvement in CMSB dates back to the company’s founding in 1974, when it was established as Cement Manufacturers Sarawak Sdn Bhd through a joint venture between the Sabah and Sarawak state economic development corporations. CMSB was listed on the stock exchange in 1989.
The share sale comes amid a weaker financial performance by CMSB. For the second quarter ended June 30, 2025 (2QFY2025), the group posted a net loss of RM11.32 million compared to a net profit of RM33.37 million a year earlier, mainly due to an unrealised foreign exchange loss of RM30.67 million from financing activities.
Quarterly revenue slipped 11.2% year-on-year to RM246.92 million, while operating profit dropped 70% to RM12.77 million, dragged by higher costs and weaker contributions from associates. For the first half of FY2025, net profit declined 80.4% to RM14.01 million, with revenue down to RM493.05 million from RM555.36 million a year ago.
By segment, the cement division’s profit before tax (PBT) fell 3% to RM68.72 million, while the phosphates segment’s losses widened to RM87.19 million, largely due to foreign exchange losses from US dollar-denominated shareholder loans.
Excluding these forex impacts, CMSB said its normalised PBT for the first half would have been RM55.18 million. The group expects its earnings to improve in the second half of the year as construction activity picks up with better weather conditions. CMSB’s shares closed one sen higher at RM1.36 on Monday, valuing the company at RM1.46 billion. Year to date, the stock has gained 13.3%.
