KUALA LUMPUR (Aug 27): Chin Hin Group Bhd’s (KL:CHINHIN) net profit for the second quarter ended June 30, 2026 (2QFY2026) fell 63.87% year-on-year to RM7.68 million from RM21.26 million — its weakest quarterly earnings in nearly five years — as a fair value loss on other investments weighed on the bottom line.

Revenue, however, rose 10.27% to RM1.05 billion from RM954.53 million a year earlier, driven by higher contributions from its property, construction and building materials businesses, a bourse filing showed.

Chin Hin incurred a RM19.80 million fair value loss on other investments in 2QFY2026 compared to a RM8.98 million fair value gain in 2QFY2025.

Administrative expenses also increased 10.29% year-on-year to RM125.88 million, while finance costs rose 6.93% to RM25.32 million.

Chin Hin did not declare a dividend for the quarter, with the group’s last dividend payment made in 2022.

For the six months ended June 30, 2026 (6MFY2026), net profit fell 32.35% to RM26.8 million from RM39.62 million, while revenue increased 4.10% to RM1.98 billion from RM1.91 billion.

Looking ahead, Chin Hin said it remains focused on delivering sustainable growth through disciplined strategy execution, operational excellence and prudent financial management across its diversified business portfolio.

“Key priorities in the short to medium term include accelerating sales conversion within the property development division, enhancing productivity and operational efficiency across the building materials segment, and ensuring the timely execution and delivery of construction projects,” it said.

The group added that it is supported by a healthy order book, integrated business ecosystem and resilient operating platform, which it said would help sustain growth momentum, capitalise on emerging opportunities and create long-term value for stakeholders.

Meanwhile, Chin Hin Group Property Bhd (KL:CHGP), in which Chin Hin holds a 58.51% stake, reported an 8.33% year-on-year decline in net profit for 2QFY2026 to RM11.81 million from RM12.89 million, amid higher tax expenses and weaker performance from its commercial vehicles and bodyworks business. 

Revenue rose 26.60% to RM264.24 million from RM208.79 million, primarily driven by ongoing property development projects including Ayanna, Andalan, Solarvest, Crown, Avantro, Botanica Hills, Sempurna and Dawn.

CHGP declared a second interim single-tier dividend of one sen per share for FY2026, to be paid on Oct 20, bringing the year-to-date dividends declared so far to two sen per share.

For 6MFY2026, CHGP’s net profit rose 5.33% to RM25.93 million from RM24.62 million, while revenue increased 21.08% to RM505.90 million from RM417.82 million.

As at end-June this year, CHGP said the property development segment had RM2.20 billion in unbilled sales from ongoing projects including Dawn, Avantro, Crown, Aricia, Ayanna and Botanica Hills.

The group said it remains confident of delivering a satisfactory performance for the remainder of 2026, supported by its strong unbilled sales, while continuing to launch projects as scheduled and closely monitoring project progress and costs to ensure timely and cost-effective delivery.

It also continues to explore opportunities to expand its development pipeline through strategic land acquisitions and joint development arrangements.

The commercial vehicles and bodyworks segment, meanwhile, continues to operate in a challenging and competitive environment.

CHGP said it would maintain a prudent and disciplined approach in managing the segment while evaluating strategic options in line with its core property-related business.

At Thursday’s closing bell, shares of Chin Hin slipped one sen or 0.48% to RM2.09, giving the group a market capitalisation of RM7.40 billion, while CHGP was unchanged at RM1.00, valuing the property group at RM1.39 billion.