Chin Hin quarterly revenue tops RM1b on stronger property, construction contributions

PETALING JAYA (Aug 27): Chin Hin Group Bhd’s quarterly revenue exceeded RM1 billion in the second quarter ended June 30, 2026 (2QFY2026), supported by stronger contributions from its property development and construction businesses, as well as its expanded ready-mixed concrete operations.

Revenue rose 10.3% year on year to RM1.05 billion, while gross profit increased 6.7% to RM196.05 million, according to the group’s unaudited filing with Bursa Malaysia on Thursday (Aug 27).

Property development was among the key growth drivers, with quarterly revenue rising 38% to RM254.11 million as construction progressed across projects including Ayanna, Andalan, Solarvest, The Crown, Avantro, Botanica Hills, Sempurna and Dawn. Segment profit before tax (PBT) increased 31% to RM27.17 million.

Construction revenue grew 26.5% to RM223.34 million on higher progress billings from ongoing projects, while segment PBT rose to RM5.93 million from RM3.13 million a year earlier.

As at June 30, the construction engineering division had an outstanding order book of RM1.99 billion, including Hospital Langkawi, Pan Borneo packages, Quaver Residence and Ayanna Resort Residences.

The property development division, meanwhile, had RM2.2 billion in unbilled sales, supported by ongoing developments including Quaver, Ayanna, Avantro, Solarvest, The Crown, Andalan, Dawn, Aricia and Botanica Hills.

Building materials revenue rose 13.5% to RM542.06 million, aided by maiden contributions from Chin Hin Concrete (KL) Sdn Bhd and Durable Group, together with stronger contributions from its autoclaved aerated concrete (AAC) and precast concrete businesses.

The AAC and precast business recorded revenue of RM180.97 million and PBT of RM19.59 million, while the ready-mixed concrete operation contributed RM79.55 million in revenue and RM8.16 million in PBT.

The group’s home and living businesses — comprising kitchen and wardrobe systems and interior fit-out works — recorded combined quarterly revenue of RM189.62 million, down from RM234.92 million a year earlier, mainly due to project timing, scale and completion milestones.

Their combined PBT fell to RM18.83 million from RM27.95 million amid tighter margins and higher personnel costs linked to capacity expansion.

Signature International Bhd, Chin Hin’s home and living arm, had an order backlog of RM1.12 billion for kitchen and wardrobe systems and RM114 million for interior fit-out works as at June 30.

Executive chairman Datuk Wira Chiau Haw Choon said the group’s combined construction order book, property unbilled sales and home and living order backlog stood at about RM5.4 billion, providing visibility for its businesses in the years ahead.

Reported earnings lower

Despite the higher revenue, Chin Hin’s group PBT fell 15.9% to RM50.44 million from RM59.97 million, after it recognised a RM19.80 million fair-value loss on other investments during the quarter, compared with a RM8.98 million fair-value gain a year earlier.

Net profit attributable to shareholders declined 63.9% to RM7.68 million from RM21.26 million, while earnings per share fell to 0.22 sen from 0.60 sen. No dividend was declared for the quarter.

In its accompanying press release, Chin Hin said that excluding fair-value movements, underlying PBT rose 37.8% year on year to RM70.2 million.

For the first half of FY2026, revenue rose 4.1% to RM1.98 billion and gross profit increased 4.7% to RM378.08 million.

First-half PBT, however, declined 6.8% to RM118.49 million, which the group attributed primarily to RM9.26 million in fair-value losses on other investments.

The group generated RM68.72 million in net cash from operating activities during the first half. As at June 30, it had RM519.42 million in cash and bank balances, RM119.92 million in fixed deposits and RM1.70 billion in bank borrowings.

Chiau said Chin Hin would remain focused on disciplined execution, preserving margins and converting its development, construction and home and living pipeline into sustainable shareholder value.

..........

EdgeProp monthly brings you data, insights and solutions for an evolving market. Subscribe now for your free copy!