KUALA LUMPUR (July 26): Chin Hin Group Bhd shares hit a new record high of RM4.51 on Tuesday (July 26) morning, ahead of the group's upcoming extraordinary general meeting on Aug 4 over the proposed sale of a 19.34% stake in Solarvest Holdings Bhd, as well as a one-for-one bonus issue.

The stock rose 12 sen or 2.73% from its previous close of RM4.39.

Among the top gainers, Chin Hin had eased to RM4.49 at 10.52am, with some 357,600 shares traded.

At the current price, its market capitalisation is RM3.97 billion.

Chin Hin’s share price has risen 66.91% year-to-date from RM2.69 and a whopping 228% from last year's RM1.37.

On May 17, the group proposed to sell a 19.34% stake or 129.1 million shares in Solarvest to Divine Inventions Sdn Bhd, which is owned by Chin Hin's major shareholder the Chiau family, for RM103.28 million or 80 sen per share. Divine Inventions owns a 36.6% stake in Chin Hin.

Chin Hin would book a one-time capital gain of RM35.68 million and use the bulk of the sale proceeds to repay bank borrowings.  

Following the disposal, the group's bank borrowings are expected to fall to RM688.17 million from RM790.89 million at the end of 2021.

For the first quarter ended March 31, 2022, Chin Hin’s net profit grew 73.25% to RM26.26 million from RM15.16 million a year earlier due to a gain on disposal of Solarvest shares, as well as share of results of associates and joint-venture companies.

Its quarterly revenue increased by 13.98% year-on-year to RM350.95 million from RM307.91 million, driven by higher revenue from its building materials sector and wire mesh segment.