RHB Research Institute Sdn Bhd (RHBRI) has maintained its "buy" call on Cahya Mata Sarawak Bhd (CMS) as the group has a tight grip on the fast-growing cement industry in Sarawak while its other core divisions are set to ride on the state's growth story.

CMS was listed among Malaysia's top five small cap companies by RHBRI in its Top Malaysia Small Cap Companies 30 Jewels 2013 book.

According to the book, cement demand in Sarawak had enabled CMS's local expertise to distribute the relatively low-value and bulky material at competitive prices within Sarawak.

Thus, it also reinforced its strategic monopoly of the state's cement market.

"Its upgraded plant has been operating smoothly since March 2013.

"The group is on track to return to the black after incurring a loss of RM29 million in financial year (FY) 2012 due to the plant's prolonged shutdown. We expect the plant's efficiency to improve and its production to grow from FY 2014," RHBRI said.

The research institute expected the demand for construction-related materials to be well-supported, with the government setting its sights on the state's infrastructure development to support the Sarawak Corridor of Renewable Energy (Score).

It also said CMS supplied about half of Sarawak's high-quality asphaltic concrete (premix) and bitumen emulsion requirements.

In addition, the company is participating directly and indirectly in Score via its 51 per cent ownership in Samalaju Property Development, whose first undertaking is the development of an international class temporary workers camp in Samalaju Industrial Park.

On dividend, it said CMS's strong cash-generating capacity provided scope to reward shareholders via a 30 per cent payout commitment.