PETALING JAYA: Chin Hin Group Bhd’s net profit for the third quarter ended Sept 30, dipped 0.43% to RM6.04 million from RM6.01 million in the same quarter last year, dragged by the gross losses, and finance cost incurred by its new start-up companies.
Revenue rose 6.82% to RM278.70 million from RM260.90 million, driven by higher revenue from the autoclaved aerated concrete (AAC) blocks, precast concrete products, Starken drymix products, green cement, distribution of building materials and ready-mixed concrete sector.
“The operating environment is envisaged to remain even more challenging after the tabling of the 2019 Budget. Our new AAC production line with 600,000 m3 installed capacity located at Kota Tinggi, Johor, which has started its testing and commissioning in early June 2018 has ramped up to 25% capacity as of end October 2018,” the company said.
“Nonetheless, the hiccups faced at this new plant since its commissioning have yet to be resolved. This plant has been scheduled to produce higher margin wall panels to meet the growing demand from Singapore.”
Chin Hin’s acquisition of metal doors and window frames manufacturer Kempurna for RM4.14 million will complement the group’s fire-rated door business besides enabling Chin Hin to enhance its involvement and market share in the door manufacturing business.
As for its Ultra High Performance Concrete business, Chin Hin managed to secure some sizeable projects in November 2018 with the total contract value of about RM10 million. These projects are expected to kick start and contribute positively to the bottom line of the group in 2019.
For the cumulative period of nine months, the group’s net profit stood at RM15.29 million, 27.51% lower than the same period last year. Revenue for the period declined by 9.03% to RM828.34 million from RM759.73 million.
