Chin Hin Group Doubles 1Q Profit to RM18.4 Million, Driven by Signature International and Property Turnaround

Chin Hin Group Doubles Q1 Profit to RM18.4 Million on Signature International Gains and Property Turnaround

Chin Hin Group Bhd (KL:CHINHIN) delivered a strong financial performance in the first quarter ended March 31, 2025 (1QFY2025), as its net profit more than doubled to RM18.39 million from RM9.07 million in the same period last year. The results underscore the diversified group’s growing resilience and strategic expansion into value-accretive segments, particularly fitted interiors and property development.

The quarter’s success was primarily attributed to:

• A robust contribution from Signature International Bhd (KL:SIGN), a key associate specializing in kitchen and wardrobe systems.

• A significant turnaround in the group’s property development division, which swung from losses to profits.

• Higher construction billings and better execution of in-house development projects.

Despite facing external macroeconomic headwinds, Chin Hin’s results demonstrate effective internal synergy across its subsidiaries, optimized cost management, and sustained operational excellence.

💼 Signature International Lifts Group Margins

One of the standout performers in 1QFY2025 was Signature International, which significantly improved its margins, thereby contributing to Chin Hin’s overall gross profit margin of 18.61%, a sharp increase from 10.57% a year ago.

Signature’s strong order book continues to underpin its performance:

• RM907 million in kitchen and wardrobe system orders

• RM322 million in interior fit-out works

These figures reflect sustained demand in both residential and commercial markets, driven by premium offerings and project-based contracts in the domestic and export markets.

🏗️ Property Segment Rebounds with RM26.3 Million Profit

A major highlight this quarter was the dramatic reversal in Chin Hin’s property development division, which recorded a profit of RM26.27 million, compared to a loss of RM0.98 million in 1QFY2024.

This was driven by:

• Faster construction progress on its in-house developments

• A steady stream of unbilled sales totalling RM2.1 billion, anchored by ongoing projects like:

  • Quaver Residence

  • Ayanna Resort Residences

  • Avantro Residences

  • Other Klang Valley and southern region projects in the pipeline

The company also announced plans to launch new developments in 2025, expected to further support top-line growth and strengthen its market position in the competitive property segment.

🔨 Construction Segment: Strong Order Pipeline

Chin Hin’s construction arm showed consistent growth, backed by solid billing momentum and synergies with internal development projects.

As of March 31, 2025:

• Outstanding order book stood at RM1.8 billion

• The group will continue bidding for new contracts, with an emphasis on integrated mixed-use developments and sustainable construction practices

With Malaysia’s renewed focus on infrastructure under the 12th Malaysia Plan and New Industrial Master Plan 2030, Chin Hin is strategically positioned to benefit from national development projects and private sector demand.

🧱 Building Materials: Profit Resilient Despite Revenue Dip

Despite lower revenue in the building materials segment, Chin Hin reported a 49.9% increase in segmental profit, thanks to:

• Cost optimisation and efficiency improvements

• Improved performance in:

  • Precast concrete

  • Metal roofing

  • Drymix and autoclaved aerated concrete (AAC)

• Sustained demand from construction clients despite market volatility

However, management cautioned that this segment remains exposed to:

• Weaker market demand

• Rising input costs

• Competitive pricing pressure

Nonetheless, strategic investments in production efficiency and supply chain management are expected to help mitigate these risks over time.

📊 Financial Summary: 1QFY2025 vs 1QFY2024

💬 Management Outlook: Optimism Despite Challenges

In its Bursa Malaysia filing, Chin Hin Group outlined a cautiously optimistic outlook for FY2025, stating that ongoing investments and operational streamlining efforts will drive future profitability.

The group’s forward-looking strategy includes:

• Scaling Signature International’s export markets

• Sustaining property development momentum with new launches

• Targeted bids for high-margin construction projects

• Exploring diversification within the building materials segment, including green-certified and modular solutions

📉 Market Reaction and Valuation

As of the market close:

• Chin Hin shares ended 0.5% lower at RM2.14, giving it a market capitalization of RM7.58 billion

• The stock is down 9.7% year-to-date (YTD), reflecting broader market volatility despite solid fundamentals

Still, analysts may view the company’s expanding order books, diversified earnings streams, and asset-light approach as long-term positives that could underpin a valuation re-rating.

🔚 Conclusion: Chin Hin Poised for Sustainable Upside in FY2025

With strong quarterly performance, a diversified business portfolio, and improved profitability across all major segments, Chin Hin Group Bhd is emerging as a resilient and growth-ready conglomerate in Malaysia’s industrial and real estate sectors.

By unlocking synergies between manufacturing, construction, property, and interior solutions, the group has proven its ability to navigate market cycles and capitalize on structural growth opportunities.

As it progresses through FY2025 with an eye on execution, cost control, and value creation, Chin Hin is likely to remain on investors’ radar as a well-managed, forward-thinking mid-cap player.