KUALA LUMPUR (Nov 26): Integrated building materials provider Chin Hin Group Bhd's net profit grew by a marginal 0.43% to RM6.04 million in the third quarter ended Sept 30, 2018 (3QFY18) from RM6.01 million a year ago, due to losses from start-up companies, administration expenses and finance costs that were incurred during the period.

This resulted in a lower earnings per share of 1.15 sen for 3QFY18, compared with 1.17 sen for 3QFY17.

This was despite quarterly revenue rising 6.8% to RM278.71 million from RM260.9 million in 3QFY17. The growth in revenue for the current quarter was mainly derived from higher revenue from the autoclaved aerated concrete (AAC) block, precast concrete products, Starken drymix products, green cement, distribution of building materials and ready-mixed concrete sector.

For the cumulative nine months (9MFY18), Chin Hin reported a 27.5% drop in net profit to RM15.29 million from RM21.1 million in 9MFY17, while revenue increased 9% to RM828.34 million from RM759.73 million a year ago.

On prospects, Chin Hin said the operating environment is envisaged to remain even more challenging, after the tabling of Budget 2019.

The group said tits new AAC production line with 600,000 cubic metres installed capacity in Kota Tinggi, Johor, which has started its testing and commissioning in early June, has ramped up to 25% capacity as of end-October. The AAC plant has been scheduled to produce higher margin wall panels to meet growing demand from Singapore.

For its ultra high performance concrete business, the group has managed to secure some projects this month, with a total contract value of RM10 million. These projects are expected to kick start and contribute positively to the bottom line of the group in 2019.

At 2.58pm, Chin Hin shares were unchanged at 70 sen for a market capitalisation of RM385 million.