UMA reply: Chin Hin unaware of any corporate development, except for Solarvest stake sale, one-for-one bonus issue

• Chin Hin's share price has risen 83.27% year-to-date from RM2.69 and 257% over the past year from RM1.38.
• The group stated that is is in compliance with Bursa Securities Listing Requirements (LR), in particular Paragraph 9.03 of the LR on the immediate disclosure obligations.

KUALA LUMPUR (Aug 3): Chin Hin Group Bhd, which was slapped with an unusual market activity (UMA) query on Tuesday (Aug 2), responded to Bursa Securities' query that it is unaware of any corporate development relating to the group's business and affairs apart from the proposed sale of a 19.34% stake in Solarvest Holdings Bhd, as well as the one-for-one bonus issue of Chin Hin shares.

Home-grown building material distributor Chin Hin's shares have closed higher for 11 consecutive days since July 15, reaching RM5.11 on Monday (Aug 1), 62.74% higher than July 15's close of RM3.14.

The shares climbed further at the opening bell on Tuesday (Aug 2), touching a record high of RM5.12.

The shares traded between RM5.12 and an intraday low of RM4.80 on Tuesday. However, it lost momentum at the close, falling 18 sen or 3.52% to end the day at RM4.93 with about 854,800 shares traded.

At RM4.93 per share, Chin Hin has a market capitalisation of RM4.36 billion.

Chin Hin's share price has risen 83.27% year-to-date from RM2.69 and 257% over the past year from RM1.38.

On April 22, Chin Hin proposed to undertake a bonus issue of 885.08 million new shares on the basis of one bonus share for every one ordinary share in Chin Hin held at an entitlement date to be determined later.

Subsequently, on May 17, Chin Hin proposed to undertake a disposal of 129.1 million Solarvest shares, representing a 19.34% stake, to Divine Inventions Sdn Bhd for a cash consideration of RM103.28 million. Divine Inventions owned a 36.6% stake in Chin Hin as of end-June and is an entity owned by Chin Hin's major shareholder, the Chiau family.

"On July 14, 2022, the company issued the circular to shareholders in relation to the proposed bonus issue and proposed disposal to the shareholders, and subject to the extraordinary general meeting will be held on Thursday, Aug 4, 2022," the group told Bursa on Tuesday (Aug 2).

Other than the above, Chin Hin said it is not aware of any corporate development, rumour, report or any other possible explanation relating to the group's business and affairs that might have accounted for the UMA.

It added that it is in compliance with Bursa Securities Listing Requirements (LR), in particular Paragraph 9.03 of the LR on the immediate disclosure obligations.

For the first quarter ended March 31, 2022, Chin Hin's net profit surged 73.25% to RM26.26 million from RM15.16 million a year ago, as quarterly revenue grew 13.98% to RM350.95 million from RM307.915 million in the previous year's corresponding period.