- Chin Hin’s expansion into the property development and construction segment in 2021 has also brought in the revenue of RM12.49 million and RM23.36 million from the vehicle and property development and construction division respectively.
KUALA LUMPUR (Aug 26): Chin Hin Group Bhd’s net profit for the second quarter ended June 30, 2022 (2QFY22) got a big boost from the revaluation of its 19.34% stake in Solarvest Holdings Bhd.
The building material supplier’s net profit swelled to RM38.49 million, or 4.35 sen per share, compared with RM3.62 million or 0.65 sen per share a year earlier, according to its filing with Bursa Malaysia.
Notably, Chin Hin booked fair value gains on other investments of RM37.23 million in 2QFY22 which helped lift its operating income to RM41.6 million, more than five times of RM7.8 million a year ago.
The gain on fair value made up over 90% of the company’s quarterly net profit.
On its operation, quarterly revenue grew 63.45% to RM351.33 million from RM214.95 million, as demand for building materials increased after construction activities resumed.
“Moreover, Chin Hin’s expansion into the property development and construction segment in 2021 has also brought in the revenue of RM12.49 million and RM23.36 million from the vehicle and property development and construction division respectively,” Chin Hin explained.
The company’s gross profit increased substantially to RM26.45 million in 2QFY22 against RM15 million a year ago. Nonetheless, its administrative expenses also rose to RM25.11 million in the quarter under review.
For the six months ended June 30 (1HFY22), Chin Hin’s cumulative net profit soared 245% to RM64.75 million from RM18.77 million. The handsome profit was mainly driven by the gain on disposal of investment in an associate company amounting RM19.94 million plus fair value gains on other investments of RM37.23 million.
Cumulative six-month revenue climbed 34.3% to RM702.28 million from RM522.86 million.
Moving forward, Chin Hin said it will continuously bid for more new contracts to replenish its order book after the tail end of the national sewerage projects.
Furthermore, it will continue to penetrate and expand its overseas market, especially Philippines, to fill up the excess capacity in Starken AAC 2’s autoclaved aerated concrete.
Chin Hin’s share price closed at 85.5 sen on Friday (Aug 26), valuing it at RM387 million.
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