KUALA LUMPUR (Aug 22): Chin Hin Group Property Bhd saw its net profit risen 91 times to RM5.83 million in the second quarter ended June 30, 2023 (2QFY2023), from RM64,000 a year ago, due mainly to higher work progress of the construction projects.

According to its filing to Bursa Malaysia on Tuesday (Aug 22), its earnings per share ballooned to 1.18 sen in 2QFY2023, from 0.01 sen a year before.

The construction segment’s profit before tax (PBT) surged more than seven-fold to RM8.42 million compared to RM1.16 million previously, as revenue increased more than six times to RM135.72 million, from RM22.08 million previously, said the group.

The higher net profit also coincided with its commercial vehicles and fleet management segment posting a higher PBT of RM1.8 million, versus RM898,000 a year before, on the back of a higher revenue of RM19.07 million compared to RM12.49 million previously. The segment’s better results were due to higher demand for rebuilt commercial vehicles.

Meanwhile, its property development segment’s loss before tax widened to RM3.88 million in 2QFY2023, from RM1.64 million a year before, due to higher marketing costs incurred to prepare for new launch projects, despite revenue having improved to RM12.97 million, from RM1.28 million previously.

Quarterly revenue was higher at RM58.74 million, from RM35.85 million a year before.

No dividend was declared during the quarter under review.

For the cumulative six months of FY2023, its net profit jumped more than 14 times to RM19.51 million, from RM1.37 million.

On prospects, the integrated builder conglomerate said its construction segment is expecting a gradual improvement in contract flows. The division’s outstanding order book stands at RM1.16 billion.

For its rebuilt commercial vehicles division, it said the market for commercial vehicles is anticipated to experience continuous challenges, coupled with the weak ringgit exerting pressure on the segment’s profit margin.

Nevertheless, the group remains cautiously optimistic about the prospect of this segment due to the strong demand for light/big truck models and prime movers from the logistics and food delivery businesses.

As such, the group will continue to explore more options available and expand its sales and marketing for the Cergas Van, which was targeted for the tourism & commercial industry.

As for its property development segment, the group is expected to launch its commercial development, the Solarvest Tower at KL Gateway, with an estimated gross development value (GDV) of RM234.78 million.

The group is also planning two new launches in 2023, being Avantro Residences in Bandar Kinrara and Ayanna Resort Residences in Bukit Jalil, with a total GDV of RM1.14 billion.

Chin Hin Group Property’s share price closed up 0.5 sen or 0.5% to RM1 on Tuesday, valuing the group at RM551 million. Over the past 12 months, the stock has risen 16% from 86 sen.