KUALA LUMPUR (May 29): Chin Hin Group Bhd (KL:CHINHIN) saw its first-quarter net profit double, mainly on contributions from kitchen and wardrobe maker Signature International Bhd (KL:SIGN) and a turnaround in its loss-making property development segment.
Faster progress in in-house property projects and better construction billings also helped raise profits for the quarter ended March 31, 2025.
Net profit for the quarter under review rose to RM18.39 million from RM9.07 million in the same period a year earlier, according to the diversified group’s bourse filing on Thursday. Earnings per share was almost flat at 0.52 sen versus 0.51 sen a year ago.
Signature International’s better margins boosted Chin Hin’s overall gross profit margin to 18.61%, up from 10.57% last year. The property segment made a RM26.27 million profit, reversing a RM0.98 million loss. While the construction segment also improved, supported by in-house property projects and better billing from current contracts.
Despite lower revenue, the building materials segment saw a 49.9% profit increase, mainly due to better performance in distribution, precast concrete and metal roofing, supported by cost-cutting efforts.
Revenue for the quarter under review was 66.9% higher at RM951.95 million compared to RM570.21 million in 1QFY2024.
No dividend was declared for the quarter.
The group, in a filing with Bursa Malaysia, said as of March 31, 2025, Signature International had a strong order book of RM907 million for kitchen and wardrobe systems and RM322 million for interior fit-out works. The company expects better revenue and profit in FY2025, supported by ongoing and new orders.
Chin Hin also expects the construction business, which had an outstanding order book of RM1.8 billion, to see steady contract flow, supported by upcoming in-house property projects. It plans to continue bidding for new contracts.
The property development segment had unbilled sales of RM2.1 billion from ongoing projects like Quaver Residence, Ayanna Resort Residences, Avantro Residences, and others. It also plans to launch new projects in the Klang Valley and Southern Region in 2025.
Chin Hin said its building materials division is under pressure from weaker demand, rising costs, and more competition, which have hurt revenue and margins. However, it remains profitable due to strong demand for key products like autoclaved aerated concrete, precast concrete and drymix, along with ongoing efficiency improvements.
Shares in Chin Hin closed one sen or 0.5% lower at RM2.14, valuing the group at RM7.58 billion. The counter has declined 9.70% year-to-date.
