KUALA LUMPUR (Nov 22): Chin Hin Group Bhd’s net profit for the third quarter ended Sept 30, 2023 (3QFY2023) fell 29.38% to RM11.59 million from RM16.41 million a year ago, due to higher administrative expenses and finance cost.
Earnings per share dropped to 0.65 sen from 1.62 sen, the building material distributor’s filing on Wednesday showed.
Quarterly revenue, however, increased 20.85% to RM505.29 million from RM418.12 million in 3QFY2022, mainly driven by the distribution of the building materials sector.
On a quarter-on-quarter basis, Chin Hin’s net profit declined 47.01% from RM21.87 million in 2QFY2023, due to lower profit share from its associate safety glass maker Ajiya Bhd and lower share profit entitlement from its ongoing joint property development projects. Revenue was down marginally from RM500.57 million.
For the nine-month period ended Sept 30, the group’s net profit dropped 34.07% to RM53.5 million from RM81.16 million in the same period last year, although revenue rose 36.54% to RM1.53 billion from RM1.12 billion.
Chin Huat said that as of end-September, its construction division’s outstanding order book stood at RM1.1 billion. The group noted that the replenishment of its order book will depend on the roll-out of infrastructure projects by the government and private construction projects.
“This segment [construction] will continue to bid for construction projects to replenish its current orderbook,” it said.
The group also expects that all its major infrastructure construction projects, namely MRT3 Circle Line’s four major contract packages, East Coast Rail Link project, Klang Valley Double Track Phase 2 and Central Spine Road will continue to drive the growth of the construction industry in Malaysia over the next three to four years.
Chin Hin’s share closed five sen or 1.27% higher at RM3.98 on Wednesday, with a market capitalisation of RM7.05 billion. The counter has risen 22.46% year to date.
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Source: EdgeProp.my
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