KUALA LUMPUR (Nov 27): Chin Hin Group Bhd (KL:CHINHIN) more than doubled its net profit for the third quarter thanks to revenue from newly-acquired subsidiaries that significantly boosted its overall gross margin.

Net profit for the quarter ended Sept 30, 2024 (3QFY2024) was RM27.67 million, according to an exchange filing on Wednesday. Both building materials firm Ajiya Bhd (KL:AJIYA) and kitchen cabinet maker Signature International Bhd (KL:SIGN) became the company’s subsidiaries this year.

Revenue, meanwhile, jumped 81% to RM912.64 million — the highest since it was listed in March 2016 — on the back of higher revenue from its new subsidiaries, building materials division, as well as property development and construction.

The company did not declare any dividend during the quarter.

Chin Hin anticipates “steady growth” in the upcoming quarters, supported by the new subsidiaries and “firm performance” across all divisions.

For the first nine months, net profit was RM78.76 million, up 47% when compared to the same period last year, while revenue grew 48% year-on-year to RM2.26 billion.

The company however flagged further challenges at its commercial vehicles segment and is considering its options. The company said it will expand sales efforts for the Cergas Van that caters to the growing tourism industry while exploring electric commercial vehicles in the near future.

“Looking ahead, we are committed to pursuing new domestic and regional projects to replenish our order book, broaden our market reach, and capitalise on strategic growth opportunities,” the company said.

The property development segment still has unbilled sales of RM1.3 billion mainly from its on-going property development projects while outstanding construction jobs totalled RM1.4 billion at the end of September.

Signature International, which Chin Hin took control of in the second quarter, meanwhile has an order book totalling RM809 million for kitchen and wardrobe systems and RM301 million for interior fit-out works.

Shares of Chin Hin closed unchanged at RM2.30, valuing the group at RM8.14 billion ahead of the results announcement on Wednesday.