When is CMSB breaking RM5 ?

Sarawak Election stocks (Part 8)  

In the previous post at Part 6, I've mentioned that it is not the end for CMSB but its just the beginning. 

Source : http://bigcanon.blogspot.com/2015/04/sarawak-election-stocks-part-6-which-is.html 

So is it just the beginning? Seems likely!!!

On 14th April 2015, we've saw that there is another announcement from CMSB that it has got  

RM308m  project for Sarawak museum, heritage trail job! 

Source: http://www.theedgemarkets.com/my/article/cahya-mata-bags-rm308m-sarawak-museum-heritage-trail-job

From the announcement we can see that the project will contribute positively to the company financial year of 2015 to 2020. 

Source: http://www.bursamalaysia.com/market/listed-companies/company-announcements/1933397

So how much profit will CMSB generate from this project? 

We've checked again on the press statement and we found that PPES is not wholly own by CMSB where it is a joint venture between CMSB and State agency Sarawak Economic Development Corporation where CMSB owned 51% of PPES. 

Source: http://announcements.bursamalaysia.com/EDMS/edmsweb.nsf/all/BE3367C58F346ADF48257E270039AC43/$File/Press%20Release%20Museum.pdf

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As a result, lets assume the Net margin of the construction is 15% since it is a negotiated project hence, RM308 million will give PPES about RM46 million earnings. As PPES is 51% owned by CMSB hence we take RM23 million which will contribute to the bottom line of CMSB.

This 23 million will be divided by 5 years since the project will take 60 months to complete, as a result, this project will boost CMSB earnings by RM4.6 million per annum. 

Though this is not a substantial amount but it is a good sign showing that the ELECTION CANDIES are on its way! In this case, more and more candies are coming hence it will not be odd for  CMSB to break RM5 before MAY 2015! 

WOW! what price will CJ hit if CMSB hit RM5? On the other hand, readers will have to take note that CK will expired on 5th May 2015 where the last trading date is on 28th April 2015. 

So is this the end? I don't think so.. I think our Federal Government will have to distribute more candies to make sure they win the election in Sarawak hence there are more to come! This is especially when there are some political issue going on, more candies are needed to make sure the support is there!

On the other hand, HSL had started to moved a bit where KKB do moved up as well, so.... 

For your info, CMSB has 20% stake in KKB... While the Pan Borneo Highway cake will be distributed soon! Buckle up your seat belt and hold on tight! 

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