Chin Hin’s 2Q profit halves amid higher administrative expenses

• Chin Hin’s 62.31%-owned property development arm Chin Hin Group Property Bhd (KL:CHGP) logged a 2.7% increase in quarterly net profit to RM12.89 million from RM12.55 million in  2QFY2024, as revenue rose 17.1% to RM208.79 million from RM178.35 million.

KUALA LUMPUR (Aug 28): Builder cum developer Chin Hin Group Bhd's (KL:CHINHIN) net profit for the second quarter halved despite logging higher revenue, dragged by higher administrative expenses and the absence of a one-off gain recognised a year ago.

Net profit for the three months ended June 30, 2025 (2QFY2025) dropped to RM21.26 million from RM42.02 million in 2QFY2024, the group’s exchange filing on Thursday showed. Revenue rose 23.3% to RM954.53 million from RM774.01 million.

The lower bottom line was due to a drop in other operating income to RM289,000 from RM22.1 million and higher administrative expenses of RM114.14 million compared with RM69.04 million, further weighed by lower fair value gain on other investments of RM8.98 million compared with RM12.37 million.

The group recognised a RM19.91 million one-off gain in 2QFY2024 from the remeasurement of equity interest, following the acquisition of kitchen cabinet maker Signature International Bhd. Excluding the one-off gain, the group's profit before tax was up 9% to RM59.97 million from RM54.85 million in 2QFY2024.

Chin Hin said the higher topline was thanks to upswings in contributions from the construction division and property development arm, while the building material division’s revenue stood steady.

No dividend was declared for the quarter.

Chin Hin’s 62.31%-owned property development arm Chin Hin Group Property Bhd (KL:CHGP) logged a 2.7% increase in quarterly net profit to RM12.89 million from RM12.55 million in  2QFY2024, as revenue rose 17.1% to RM208.79 million from RM178.35 million.

For the six months ended June 30, 2025, Chin Hin’s net profit dropped 16.1% to RM39.62 million from RM51.1 million in the previous year’s corresponding period, while revenue rose 41.8% to RM1.91 billion from RM1.34 billion.

Going forward, Chin Hin remains upbeat on its construction division and property development arm, but flagged challenges at its building materials division.

The challenges stem from mounting cost pressures, including the expanded sales and service tax, electricity tariff hike and mandatory Employees Provident Fund contributions for foreign workers, the group said.

“Despite rising cost pressures and ongoing margin compression, the division remains resilient, underpinned by sustained demand in the manufacturing of autoclaved aerated concrete (AAC) and precast concrete products, particularly AAC blocks, panels, drymix solutions, and infrastructure-related products,” it said.

“The commissioning of Drymix Line C in August with an additional capacity of 3,000 metric tonnes per month is expected to significantly enhance operational performance in the second half of the year,” it added.

Shares in Chin Hin ended two sen or 0.92% higher at RM2.19 on Thursday, valuing the group at RM7.75 billion.

Chin Hin Group Property closed two sen or 1.71% higher at RM1.19, giving the company a market capitalisation of RM1.57 billion.

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