Chin Hin Group Bhd has strategically increased its ownership in its property and construction arm, Chin Hin Group Property Bhd (CHGP), by acquiring an additional 3.39% stake for RM29.26 million. This move boosts its shareholding to 57.13% from the previous 53.74%, marking a significant enhancement of its influence over CHGP.
Acquisition Details and Market Response
Between March 19 and April 4, 2024, Chin Hin purchased 22.39 million shares in CHGP at an average price of RM1.305 per share, as per the details filed with the bourse. The purchase price was aligned with the market rates at the time, even reflecting a 2.61% discount compared to CHGP’s average share price of RM1.34 during the 12-day trading period.
Despite the overall stock market volatility, CHGP shares have seen a substantial increase of about 70% over the past month. However, at the time of reporting, the price had adjusted slightly by three sen to RM1.82. Conversely, Chin Hin’s shares experienced a 10% rise in the same period, though they also saw a slight decrease to RM4.36.
Financial Growth and Future Prospects
This acquisition is rooted in Chin Hin’s positive assessment of CHGP’s future earnings potential and its solid order book in the construction sector, all funded internally by Chin Hin. The parent company has reported a stellar financial performance for the fiscal year ended December 31, 2023, with net profits soaring by 55% to RM150.11 million and revenues reaching a record RM2.06 billion, driven by robust sales in building materials.
CHGP itself has not been left behind in financial achievements. It reported a record net profit of RM34.58 million for FY2023, a significant leap from the previous year. The revenue for the same period was RM601.77 million, up 84%, spurred by higher contributions from its property division and progress in construction projects.
Strategic Developments and Outlook
Looking ahead, CHGP is gearing up to launch three new property development projects with a combined gross development value (GDV) of RM1.51 billion. These include Andalan Residences, Botanica Hills, and a resort-themed mixed development in Melaka. The construction segment of CHGP also shows promising prospects with an outstanding order book of RM1.1 billion as of the end of December 2023.
Chin Hin’s leadership, Datuk Seri Chiau Beng Teik and his son Chiau Haw Choon, hold a controlling interest in CHGP through their family entity, PP Chin Hin Realty Sdn Bhd, ensuring strong governance and strategic alignment.
With these moves, Chin Hin Group not only consolidates its control over CHGP but also sets the stage for sustained growth and profitability, enhancing its position in Malaysia’s competitive construction and property market.
