Chin Hin’s 4Q net profit up 77% on higher share of results from JVs

• Quarterly revenue increased 27.02% to RM509.23 million from RM400.91 million, carried by a higher volume of wall panels and autoclaved aerated concrete blocks sold to private and government projects in Singapore.

KUALA LUMPUR (Feb 27): Chin Hin Group Bhd’s net profit surged 77.1% to RM16.61 million for the fourth quarter ended Dec 31, 2022 (4QFY2022), from RM9.38 million a year earlier, underpinned by higher revenue and higher share of results from joint ventures (JVs).

Earnings per share climbed to 1.38 sen from 1.25 sen previously, according to the building material distributor’s Bursa Malaysia filing.

Quarterly revenue increased 27.02% to RM509.23 million from RM400.91 million, carried by a higher volume of wall panels and autoclaved aerated concrete blocks sold to private and government projects in Singapore.

Additionally, share of results from JVs leapt to RM9.02 million versus RM271,000 previously.

“Significant increase in share of results [from] JVs mainly contributed from the 8th & Stellar JV project entitlement,” it said, adding that another RM1.09 million in share of JV results came from profit recognised on the construction of the Miri Hospital annex building in Sarawak.

For the full financial year, Chin Hin’s net profit swelled over three-fold to RM97.77 million from RM30.7 million in FY2021, on the back of higher revenue and gain on disposal of investment in an associate company.

Full-year revenue rose 41.67% to RM1.63 billion from RM1.15 billion.

The group also booked a higher RM76.32 million gain on disposal of investment in an associate company as compared to RM9.68 million a year prior.

Touching on the year ahead, Chin Hin said all building material unit prices rose between 0.7% and 11.4% year-on-year in January 2023, due to rising electricity tariffs and fuel supply disruptions.

“It has posed greater challenges to our manufacturing [division] and [the] company as a whole,” it said, adding that it has repositioned itself to cope with challenges and remain vigilant for new prospects.