KUALA LUMPUR, Aug 4 — Chin Hin Group Bhd had completed its acquisition of a 50.8 per cent stake in Chin Hin Group Property Bhd (CHGP), adding a new subsidiary to its existing group of companies.
The group said CHGP will be the third public-listed company to be included in Chin Hin conglomerate, together with Solarvest Holdings Bhd and Signature International Bhd.
In a statement today, it said Chin Hin group of companies is principally an integrated building materials manufacturer and distributor and with the acquisition of CHGP, it allows the business to be diversified into and tap onto the property development sector, where most of its customers are currently hoovering at.
“The move is also in congruent with the 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,” it said.
The group shared that CHGP is currently on an acquisition spree to further enhance its land bank for further development with an estimated gross development value of RM4 billion and acquisition of the potential company in the construction or development-related industry to boost its profitability.
“The latter includes CHGP’s proposal to acquire a 65 per cent equity interest in construction firm Kayangan Kemas Sdn Bhd.
“Upon completion of the acquisition this will allow CHGP to diversify its business activities to include that of the construction business to supplement its existing property development business,” it noted.
Premising upon the ongoing expansionary effort undertaken by CHGP, the imminent recovery of the real estate sector and barring any unforeseen circumstances, the group postulated that CHGP will record a profit of over RM25 million in the upcoming financial year, based on its current order book and project pipeline.
“This will also allow Chin Hin to consolidate approximately RM12.5 million worth of CHGP’s profit which will contribute substantially to Chin Hin’s profit base,” it added. — Bernama
