By KINIBIZ
Taib Mahmud
Projects undertaken under the Sarawak Corridor of Renewable Energy (Score) will drive “significant” profits for Chief Minister Abdul Taib Mahmud-linked construction company Cahya Mata Sarawak.
In a report today, TA Securities said that the company led by Abdul Taib’s son-in-law Syed Ahmad Alwee Alsree and son Mahmud Abu Bekir, will see a boost from its investments in the Samalaju district near Bintulu starting 2015.
It said that earnings from the energy intensive industry and property developments in the Samalaju township would see profits from the group’s Samalaju division grow beyond the 11 percent of profit before tax it currently contributes.
“If successfully implemented, it could be the earnings growth driver or even a game changer to the group,” TA said.
The Taib family via Majaharta Sdn Bhd and directly, has about 42.7 percent equity interest in Cahya Mata.
Cahya Mata Sarawak has a 20 percent stake in OM Materials Sarawak Sdn Bhd for the manufacturing in ferrosilicon alloys.
“We expect a decent margin as OM Material had secured a 20 year electricity tariff deal for the plant in Samalaju,” the research house said.
Cahya Mata Sarawak is also formalising a 40 percent investment, or equivalent to RM850 million, in Malaysian Phosphate Additives (Sarawak) Sdn Bhd, and is looking at other investments on the energy front.
The group also has a 51 percent stake in property developments Samalaju involving the township proper, service accommodation and chalets, workers lodges and a light industrial estate.
The Score project is a RM334 billion project, of which RM267 billion will be privately-funded. RM29.1 billion of private investments have been approved to date, with RM11.3 billion in Samalaju.
Score covers more than 70,000 square kilometres region abundant with oil reserves, silica and clay.
Also part of Score is the controversial RM8 billion Bakun Dam, which has displaced more than 9000 native residents.
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