Chin Hin Disposes of Metex Steel for RM70 Million
Chin Hin Group Bhd (KL:CHINHIN) has announced the disposal of its subsidiary Metex Steel Sdn Bhd, a manufacturer of steel welded mesh and wire products, for RM70 million in cash. The deal is expected to generate a gain of RM6.1 million for the group.
The buyer, EC Excel Wire Sdn Bhd, is wholly owned by Ng Heng Hong and is involved in hardware trading, wire mesh manufacturing, processing, as well as logistics and transportation services.
Unlocking Value and Improving Cash Flow
Chin Hin said the divestment will allow the group to unlock and monetise its investment in Metex Steel, aligning with its broader strategy of streamlining business activities. The move is expected to improve overall cash flow and strengthen its financial position for future ventures.
Proceeds from the transaction will be used to:
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Support working capital requirements
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Fund business expansion initiatives
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Invest in new ventures with stronger long-term prospects
This strategy reflects Chin Hin’s ongoing effort to optimise its portfolio, focusing on high-growth areas including construction materials, property, and sustainable ventures.
Timeline and Market Impact
The transaction is expected to be completed by the fourth quarter of this year.
On the market front, Chin Hin’s shares closed two sen lower at RM2.29, giving the group a market capitalization of RM8.11 billion. Year-to-date, the stock has dipped 3.8%, although it remains one of the more closely watched counters in Malaysia’s construction and property-linked sectors.
Broader Strategy and KL Property Link
Chin Hin has built a strong presence in Malaysia’s construction and KL property ecosystem, with stakes in developments and building materials that support the sector’s growth. By divesting Metex Steel, the group signals a shift toward higher-margin, scalable businesses while ensuring it maintains a solid financial base to seize upcoming opportunities.
For stakeholders and investors, this disposal highlights Chin Hin’s commitment to portfolio optimisation, balancing short-term liquidity with long-term expansion in property and construction-driven segments.
Final Thoughts
The RM70 million divestment of Metex Steel marks another step in Chin Hin’s strategy to strengthen its financial footing and refocus on areas with stronger growth potential. As Malaysia’s property and construction landscape evolves, particularly within KL property, Chin Hin’s realignment may position the group more competitively in the years ahead.
