PETALING JAYA: Chin Hin Group Bhd’s net profit for the second quarter ended June 30, rose 46% to RM7.47 million from RM5.11 million a year ago, thanks to a gain on disposal of investment in associate of RM27.79 million from the disposal of a 6.4% stake in Solarvest Holdings Bhd.
Its revenue fell 54% to RM114.22 million from RM250 million due to the implementation of movement control order (MCO) to curb the spread of Covid-19.
“Up until May 4, 2020, almost all economic sectors and businesses are allowed to resume operation by the government. Hence, it resulted in a gross loss of RM1.04 million, a significant decrease of RM25.06 million as compared to the preceding year corresponding quarter whereby all our manufacturing plants had to incur fixed overheads such as labour cost, rental and depreciation although the plants were shut down,“ Chin Hin said.
For the six-month period, its net profit was down 7% to RM8.9 million from RM9.55 million a year ago, while its revenue dropped 25% to RM370.52 million RM492.69 million.
The board of directors approved payment of first interim single-tier dividend of 1 sen per share totalling RM5.47 million in respect of the financial year ending Dec 31, 2020.
On prospects, Chin Hin said is focusing on closing down and scaling down unprofitable plants to reduce operation losses in view of the soft demand for construction materials. The company is also concentrating its full attention on cost-cutting measures to lower operation costs and to stay competitive in the market.
“G-Cast Concrete Sdn Bhd is actively quoting for East Coast Rail Link project and other infrastructure projects in the overseas market. G-Cast already secured some projects from the Philippines for the supply of jacking pipes since last year end and is continued to export to them this year,” it said in its exchange filing.
Meanwhile, Starken Drymix Solutions Sdn Bhd has launched a series of new products under the construction chemical sector, targeted at enhancing the profitability of the company.
