KUALA LUMPUR: Chin Hin Group Bhd, Malaysia’s integrated builder, developer, and home solutions provider, reported a solid profit before tax (PBT) of RM68.05 million for Q1 ended March 31, 2026 (FY26), reflecting resilient performance, improved earnings quality and strengthened financial discipline.
The group recorded revenue of RM931.96 million, a slight 2.1% moderation from RM951.95 million in Q1 FY25.
Despite the softer top line, Chin Hin achieved stronger profitability, with gross profit rising 2.7% to RM182.03 million, lifting the gross profit margin to 19.5%. PBT grew 1.4% to RM68.05 million.
The group’s performance was underpinned by stronger contributions from its Property Development and Home & Living divisions, reflecting a continued shift towards higher-margin segments.
The Property Development division recorded a 24.4% increase to RM233.08 million, with PBT rising 13.5% to RM29.82 million, supported by progressive billing milestones and sustained sales across ongoing developments.
The Home & Living segment delivered improved profitability despite lower segment revenue, with PBT increasing 6.5% to RM26.20 million.
The kitchen and wardrobe systems business remained a key driver, with revenue surging 22.6% to RM122.95 million and PBT quadrupling to RM15.00 million.
Within the Building Materials division, the autoclaved aerated concrete (AAC) and precast concrete business recorded a 17.5% increase in revenue to RM142.49 million, while PBT rose to 40.1% to RM13.30 million, supported by improved demand and execution efficiency.
Group earnings were further supported by a RM10.55 million net gain on bargain purchase following the strategic acquisition of Chin Hin Concrete KL Sdn Bhd.
Group managing director Datuk Wira Chiau Haw Choon said Q1 FY26 is a steady quarter for Chin Hin.
“We achieved improvements in margins and cash flow while revenue was slightly lower. The stronger contribution from Property Development and Home & Living reflects our ongoing shift towards a more balanced and higher-quality earnings profile.
“Our focus remains clear – to strengthen execution, convert work into cash and protect margins, as we build a more resilient and integrated organisation,” he said.
This pipeline provides immense forward visibility.
As of March 31, 2026, Chin Hin maintained healthy forward visibility across its core businesses.
The Construction division had an outstanding order book of RM1.97 billion, supported by ongoing projects such as Hospital Langkawi, Pan Borneo packages, Quaver Residence and Ayanna Resort Residences.
The Property Development division recorded unbilled sales of RM2.20 billion, backed by projects including Quaver, Ayanna, Avantro, Solarvest, The Crown, Andalan, Dawn, Aricia and Botanica Hills.
Further, the group’s sister company, Signature International Bhd, also maintained a backlog of RM1.14 billion in kitchen and wardrobe system orders and RM98 million in interior fit-out works.
Together, these provide the group with an estimated combined order book, unbilled sales and backlog of approximately RM5.41 billion.
Chin Hin’s financial position improved materially during the quarter.
Net cash from operating activities surged 44.8% to RM64.16 million, driven by disciplined receivables collection and working capital management.
Total cash and fixed deposits increased to RM623.97 million. Consequently, net gearing dropped to 0.51 times.
Looking ahead, Chin Hin remains focused on disciplined execution across its four core businesses, supported by its integrated ecosystem.
The Building Materials division is expected to benefit from ongoing infrastructure and industrial activity, as well as improved capacity following the commissioning of Drymix Line C.
The Construction Engineering division continues to be supported by a healthy order book and replenishment opportunities from infrastructure, semiconductor and data centre investments.
The Property Development division will continue to prioritise project execution, sales momentum and new launches, subject to market conditions and approvals.
The Home & Living segment is expected to remain supported by its strong backlog, established brand positioning and demand for customised lifestyle solutions.
“Our priority for FY26 is to drive better execution across all divisions, manage cost prudently and strengthen overall Group performance.
“Our overall strategy is not about short-term expansion but about building a more connected, disciplined and future-ready Chin Hin,” he said.