- Quarterly revenue rose 42.48% to RM500.57 million, from RM 351.33 million a year ago, due to higher progress work done on the construction site and a high volume of the wall panel and autoclaved aerated concrete blocks sold to private and government projects in Singapore.
KUALA LUMPUR (Aug 30): Chin Hin Group Bhd posted a 43.18% drop in its net profit to RM21.87 million for the second quarter ended June 30, 2023 (2QFY2023), from RM38.49 million a year earlier, amid a lower fair value gain on other investment.
The group recorded a fair value gain on other investments of RM1.41 million for the quarter, down 96% from RM37.24 million previously, resulting from Solarvest Holdings Bhd's shares. Solarvest had ceased to be an associate to Chin Hin as at April 20, 2022.
The group's lower earnings was also due to a lower gain on disposal of RM1.11 million (compared to RM4.02 million in 2QFY2022) and higher impairment loss on receivables of RM3.62 million (RM1.63 million previously) due to subsidiary Chin Hin Group Property Bhd’s long outstanding debts.
On top of that, earnings were dragged by increased administrative expenses, which rose 11.9% to RM28.11 million, from RM25.12 million previously, due to the expansion in the property development and construction division and higher costs of RM9.8 million, up 37% from RM7.15 million previously.
Earnings per share rose to 1.24 sen from 4.35 sen in 2QFY2022, according to the group's bourse filing.
Quarterly revenue rose 42.48% to RM500.57 million, from RM 351.33 million a year ago, due to higher progress work done on the construction site and a high volume of the wall panel and autoclaved aerated concrete blocks sold to private and government projects in Singapore.
For the first six months of FY2023, net profit dropped 35.26% to RM41.92 million, from RM64.75 million in the previous January-June period, despite cumulative revenue rising 45.88% to RM1.02 billion from RM702.28 million.
Looking ahead, the group said all the major infrastructure construction projects, — MRT3 Circle Line's four major contract packages, East Coast Rail Link project, Klang Valley Double Track Phase 2, Central Spine Road project — are expected to keep driving the growth of the construction industry in Malaysia over the next three to four years.
“The group remains committed to pursuing business expansion opportunities by actively seeking new government and private construction projects,” it added.
The group’s construction division’s outstanding order book currently stands at RM1.16 billion.
Shares in Chin Hin closed four sen or 0.94% higher at RM4.31 on Wednesday, for a market capitalisation of RM7.63 billion. Over the past one year, the stock has jumped 69% from RM2.55.
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