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Chin Hin crosses RM4b revenue mark, strengthens balance sheet in FY25

KUALA LUMPUR: Chin Hin Group Bhd delivered a strong and resilient performance for Q4 and the financial year ended December 31, 2025 (FY25), underpinned by disciplined execution, improved earnings composition, and a significantly strengthened balance sheet.

For FY25, the group achieved a historic high in top-line performance, recording a revenue rise of RM4.07 billion, marking a 25.2% year-on-year (YoY) increase and crossing the RM4 billion threshold for the first time.

Gross profit rose 47.3% to RM773.4 million, with gross margin expanding 2.9% to 19.0%, reflecting a better revenue mix and stronger contributions from property development, construction, and home living segments.

Profit before tax (PBT) grew 13.9% to RM314.2 million.

Group managing director Datuk Wira Chiau Haw Choon said FY25 demonstrated the strength of Chin Hin Group’s operational execution and financial discipline.

“Our focus translates into stronger earnings quality, improved cash generation and a meaningful reduction in gearing.

“While we continue to sharpen margins in building materials, the group now operates from a much stronger financial and operational base.

“With a robust pipeline and integrated IntraBuild ecosystem, we enter 2026 with confidence, and we are well-positioned to continually deliver sustainable growth and long-term value to our stakeholders and the communities that we serve,” he said.

The property development division emerged as a key growth engine in FY25, delivering revenue of RM895.0 million (nearly four times that of RM232.1 million in FY24).

It recorded a PBT of RM117.0 million, a RM130.8 million turnaround from the prior year loss of RM13.8 million, supported by progressive revenue recognition and steady construction progress across key projects, including Dawn, Ayanna, Andalan, and Avantro.

The construction engineering division recorded steady performance, with revenue rising 36.4% YoY to RM845.2 million and PBT growing 17.8% to RM22.3 million, supported by stable execution across a diversified order book.

The home and living segment, led by Signature International Bhd, continued to scale strongly.

Revenue from kitchen systems, wardrobes, and interior fit-out works increased 41.8% to RM967.4 million, supported by robust demand across residential and commercial projects, stronger order fulfilment, and expanding regional capabilities.

While building materials revenue moderated by 4.4% to RM1.90 billion, largely due to the strategic exit from wire mesh manufacturing, the division remained profitable with PBT of RM134.1 million and remained strategically important within the group’s integrated ecosystem.

The group’s net debt was reduced by RM323.6 million, supported by a RM277.9 million improvement in operating cash flow to RM217.9 million and active capital recycling through strategic disposals.

Cash and deposits increased 45.1% to RM565.5 million, while net gearing improved to 0.48x from 0.80x a year ago.

The group’s RM80 million third AAC plant in Serendah remains on track for commissioning by July 2026.

Upon completion, this facility will house the world’s largest single AAC production line, expanding its total capacity to 2.2 million cubic meters annually and reinforcing Chin Hin’s leadership in industrialised and sustainable building solutions.

Chin Hin enters FY26 with a stronger operational foundation and clearer execution focus.

The group remains cautious amid ongoing cost pressures and macroeconomic uncertainty but is well-positioned to capture demand across infrastructure, industrial development, residential construction, and downstream home solutions, with a combined pipeline of RM5.29 billion, RM2.18 billion in unbilled property sales, RM1.81 billion in construction orders, and RM1.28 billion in SIB’s backlog.

The group’s key priorities for FY26 include sustaining disciplined execution across property and construction projects, improving margin quality in building materials, ramping up new AAC capacity, deepening integration across the group’s intrabuild ecosystem, and maintaining balance-sheet resilience and cash-flow discipline.

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