Chin Hin to focus on property development after hiving off commercial vehicle business for RM74 mil

• The subsidiaries, which Chin Hin acquired between 2004 and 2015 for a total cost of investment amounting to RM64.92 million, collectively contributed an unaudited profit after tax of RM125,318 for the financial period ended May 31, 2025.

KUALA LUMPUR (Aug 14): Chin Hin Group Property Bhd (KL:CHGP) said it will divest its commercial vehicle and bodyworks operations by selling its entire stakes in four subsidiaries for RM74 million.

"The proposed disposals is a strategic decision to enable the company to focus on its core business of property development—it allows the company to realise the value of its investment, streamlines its operations and enhances financial flexibility," Chin Hin said in a filing with Bursa Malaysia on Thursday.

The company added that the disposals are expected to yield a pre-tax gain of RM2.4 million. The subsidiaries, which Chin Hin acquired between 2004 and 2015 for a total cost of investment amounting to RM64.92 million, collectively contributed an unaudited profit after tax of RM125,318 for the financial period ended May 31, 2025.

Chin Hin said the four entities—Boon Koon Vehicles Industries Sdn Bhd, BKCV Sdn Bhd, Boon Koon Fleet Management Sdn Bhd, and BK Fleet Management Sdn Bhd—will be sold to N&K Resources (M) Sdn Bhd, a real estate company owned by All Trade Resources (Malaysia) Sdn Bhd,

Chin Teck's property development division CEO Chang Tze Yoong said the disposal proceeds will be deployed for landbank acquisitions in high-growth locations such as the Klang Valley, and also to support ongoing projects and other growth opportunities. 

"At the same time, this transaction will strengthen our cash position, improve liquidity, and enhance the overall financial resilience of the group,” Chang added in a statement.

Post-disposal, Chin Hin said it will concentrate exclusively on residential property projects in prime locations. The company expects the disposals to be completed by the first quarter of 2026.

Shares in Chin Hin ended two sen or 1.85% lower at RM1.06 on Thursday, valuing the company at RM1.4 billion. The stock has fallen nearly 7% year-to-date.

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