CHIN Hin Group Bhd has added a new subsidiary to its existing group of companies.
This follows the completion of its acquisition of a 50.8% stake in Chin Hin Group Property Bhd (CHGP) – the third public listed company to be included in the Chin Hin conglomerate alongside Solarvest Holdings Bhd (20.2%) and Signature International Bhd (30.5%).
Chin Hin Group is principally an integrated building materials manufacturer and distributor. Therefore, the acquisition of CHGP will enable Chin Hin’s business to diversify and tap onto the property development sector.
This is also in congruent with Chin Hin’s group managing director Chiau Haw Choon’s aspiration of expanding Chin Hin into a diversified conglomerate instead of being a company that is focusing on one particular business.
Chiau’s expansionary approach can also be traced in CHGP. His Midas touch was proven in 2017 when CHGP (then Boon Koon Group Bhd) diversified into property development from its existing business of manufacturing rebuilt commercial vehicles.
Such diversification had successfully turned CHGP into a profitable company vis-à-vis its profit track record that had been in the red for the past five consecutive financial years prior. Following the success of the turnaround plan, CHGP adopted its current name in 2018.
CHGP is currently on an acquisition spree in term of acquisition of lands to further enhance its land bank for further development with an estimated gross development value (GDV) of RM4 bil.
Additionally, it has proposed to acquire a 65% equity interest in construction firm Kayangan Kemas Sdn Bhd which is a Grade 7 contractor registered with Construction Industry Development Board.
Upon completion of the acquisition, CHGP will diversify business activities that include construction business to supplement its existing property development business.
Premising upon the ongoing expansionary effort undertaken by CHGP, the imminent recovery of the real estate sector, Chin Hin expects CHGP to record a profit of over RM25 mil in the upcoming financial year base on the company’s current order book and project pipeline.
Chin Hin’s stake in CHGP will allow Chin Hin to consolidate approximately RM12.5 mil worth of CHGP’s profit which will contribute substantially to Chin Hin’s profit base.
Chin Hin Group closed 4 sen or 2.9% lower at RM1.34 yesterday with 5.25 million shares traded, thus valuing the company at RM1.19 bil. – Aug 5, 2021
