KUALA LUMPUR (Feb 27): Chin Hin Group Bhd (KL:CHINHIN) posted a 62.5% year-on-year (y-o-y) fall in net profit for the fourth quarter on the consolidation impact of Ajiya Bhd (KL:AJIYA) and Signature International Bhd (KL:SIGN), as well as higher finance costs and taxes.

Net profit for the fourth quarter ended Dec 31, 2024 (4QFY2024) slipped to RM34.59 million from RM92.15 million in the same period a year earlier, according to the diversified group’s bourse filing on Thursday.

This was despite quarterly revenue rising 87.1% to RM986.68 million from RM527.42 million in 4QFY2023, on the back of contributions from building materials firm Ajiya and kitchen and wardrobe maker Signature International — both of which became subsidiaries of the company last year.  

However, the consolidation of Ajiya and Signature International led to 30% higher administrative expenses of RM123.62 million for Chin Hin versus RM95.26 million previously.

Higher finance costs, lower share of results of joint ventures and higher taxation further weighed on the group’s bottom line.

No dividend was declared for the quarter.

For FY2024, Chin Hin logged a 22.2% drop in net profit to RM113.36 million from RM145.66 million a year earlier, while revenue rose 57.7% to RM3.24 billion versus RM2.06 billion previously.

Looking at FY2025, Chin Hin said the group is poised to sustain steady growth in the coming quarter, citing contribution from its new subsidiaries and resilient performance across all divisions.

Chin Hin said its building materials division will remain focused on operational efficiency while seizing opportunities to expand market share.

As for the construction segment, the group said it will continue to be driven by planned in-house property development projects. The segment had an outstanding order book of RM2 billion as at end-December 2024.

The property development segment’s total unbilled sales stood at RM1.6 billion as at end-December 2024, mainly from ongoing property development projects, namely Quaver Residence, Ayanna Resort Residences, Avantro Residences, Solarvest Suites, The Crown and Andalan.

Chin Hin is cautiously optimistic on the commercial vehicle segment, with demand for light and heavy trucks, as well as prime movers, to be driven by the logistics and transportation sectors.

Through its strategic alliance with Chin Hin, Ajiya is expected to see the expansion of its market presence and product offerings.

Meanwhile, Signature International’s operational capacity will be boosted by the inclusion of the home furnishing brand “Crownlivin” in its portfolio. As at end-December 2024, it had an order book of RM909 million for kitchen and wardrobe systems and RM440 million for interior fit-out works.

Shares in Chin Hin closed four sen or 1.88% higher at RM2.17, valuing the group at RM7.68 billion.