Latest news with #ChinHinGroup
The Star
5 days ago
- Business
- The Star
Signature Alliance's ACE Market debut nets RM161mil
From left: SAG group chief financial officer Saw Gee Kai, independent director Datuk Boey Chin Gan, independent director Tan Poh Cheok, independent director Lim Sook Yee, promoter and CEO for central region Melvin Ng, executive director and CEO of northern region Mario Foo, executive director and group CEO Darren Chang, promoter Chiau Haw Choon, chairman Datuk Wan Ahmad Satria Wan Hussein, M&A Equity Holdings Bhd Datuk Bill Tan, promoter Datuk Seri Chiau Beng Teik, Chin Hin Group chief financial officer Michael Lim, SAG director Lau Kock Sang and M&A Securities Sdn Bhd head of corporate finance Gary Ting. KUALA LUMPUR: Signature Alliance Group Bhd (SAG) expects to deliver double-digit growth in net profit for the financial year ending Dec 31, 2025 (FY25), underpinned by its robust unbilled order book and tender book. As at April 16, 2025, the interior fit-out solutions provider had a total unbilled order book of RM388.6mil, which will be realised progressively over the next one to two financial years. The group has 69 ongoing projects with a total contract value of RM902.4mil. SAG also has a tender book of RM1.1bil, comprising primarily commercial and industrial property projects. Its executive director and group CEO Darren Chang said the company is confident of securing between 15% and 20% of these tenders by end-2025. 'Based on our historical average tender success rate of around 15% to 20%, we are optimistic about meeting our target,' he told the media following the listing ceremony. For FY24, the group's net profit rose nearly four-fold year-on-year (y-o-y) to RM40.6mil, on the back of a higher gross profit and a net gain on the impairment of financial and contract assets. Revenue more than doubled y-o-y to RM386.02mil in FY24. SAG provides interior fit-out services for different types of premises in the commercial, industrial and residential sectors. In FY24, the commercial segment accounted for the bulk of the group's revenue at 75.2%, followed by the industrial segment at 18.4%, and residential at 6.4%. In terms of pursuing new customers, Chang noted that the group will focus more on the commercial and industrial segments. The company has many repeat customers in the residential segment and will continue to support them when they return with other projects. 'However, residential projects are not our main focus. Our focus remains on commercial projects such as hotels, corporate offices, shopping malls and retail brand spaces,' he said. SAG made its debut on the ACE Market of Bursa Malaysia yesterday, opening at 68 sen per share – six sen higher than its initial public offering (IPO) price of 62 sen. The opening volume was 8.9 million shares. The stock closed its maiden trading day at 70 sen. It hit a high of 72 sen and a low of 67 sen during intraday trade. SAG raised RM161.2mil from the public issue of 260 million new shares. The bulk of the proceeds raised – RM88mil – is earmarked for setting up a new corporate office and a 50,000 sq ft production facility in Selangor. Another RM4mil will be used to purchase machinery and equipment, while RM12mil will go towards expanding its existing Penang office and establishing a new branch office in Johor. Meanwhile, RM30.1mil is allocated for working capital. A further RM20mil is set aside for the repayment of bank borrowings, and the remaining RM7.1mil will be used to defray estimated listing expenses. According to Chang, there is a lot of ongoing development in Penang, where the company already has an office and plans to expand it to serve more customers. Previously, the company was not fully equipped financially to pursue new clients, but with the proceeds from its listing, it is now well-positioned to seek new customers in Penang. 'There is also a lot of ongoing development in Johor as well. For instance, the Johor Baru-Singapore Rapid Transit System Link project is nearing completion.' Chang explained that now is the right time for the company to return to Johor and expand its business there. Currently, the group operates two production facilities in Bandar Baru Bangi and Puchong, Selangor. SAG intends to centralise its production activities and improve overall efficiency by relocating both facilities to the new planned production facility in Klang.
The Star
5 days ago
- Business
- The Star
Signature Alliance shares rise 13.71% on ACE Market debut
From left: SAG group chief financial officer Saw Gee Kai, independent director Datuk Boey Chin Gan, independent director Tan Poh Cheok, independent director Lim Sook Yee, promoter and CEO for central region Melvin Ng, executive director and CEO of northern region Mario Foo, executive director and group CEO Darren Chang, promoter Chiau Haw Choon, chairman Datuk Wan Ahmad Satria Wan Hussein, M&A Equity Holdings Bhd Datuk Bill Tan, promoter Datuk Seri Chiau Beng Teik, Chin Hin Group chief financial officer Michael Lim, SAG director Lau Kock Sang and M&A Securities Sdn Bhd head of corporate finance Gary Ting KUALA LUMPUR: Investors gave Signature Alliance Group Bhd (SAG) a warm welcome on its debut on the ACE Market of Bursa Malaysia, ramping up the newly-listed share to a 13.71% premium over its initial public offering (IPO) price. At the time of writing, the interior fit-out solutions provider, which raised RM161.2mil via an IPO fundraising, was trading at an intra-morning high of 70.5 sen a share, an 8.5 sen increase over its public issue price of 62 sen a share. It was the most active stock on the domestic market, with 63.9 million shares changing hands. Executive director and group CEO Darren Chang said post-listing ceremony the company is confident of securing between 15% and 20% of its RM1bil tender book by end-2025. He said the tenders primarily comprise commercial and industrial property projects valued at RM1.1bil as at April 15, 2025. "Based on our historical average tender success rate of around 15% to 20%, we are optimistic about meeting our target,' he added. Chang said the company's earnings visibility for the financial year ended Dec 31, 2025 (FY25) and FY26 will be supported by an unbilled order book of RM388.6mil as at April 16, 2025, in addition to anticipated contract wins. As at 16 April 2025, SAG has 69 ongoing projects with a total contract value of RM902.4mil. 'Our current ongoing projects of RM902.4mil, of which RM388.6mil are unbilled, clearly reflects market demand for our interior fitting-out services and provides earnings visibility for the next one to two financial years,' Chang added. SAG is on an expansion drive, allocating more than half of its IPO proceed to the development of a new corporate headquarters and production facility in Selangor. A sum of RM88mil or 54.6% of the total proceeds will go towards the new corporate and production facility, while an additional RM12mil will be used for establishing and expanding brand offices in Penang and Johor. SAG would also allocate RM30.1mil for working capital requirements and RM4mil for the acquisition of new machinery and equipment. The remaining proceeds would be used for the repayment of bank borrowings at RM20mil and to cover listing-related expenses at RM7.1mil. Pre-IPO, SAG was 50.7%-owned by Signature International Bhd , which is indirectly controlled by construction outfit Chin Hin Group Bhd . Following the IPO, Signature International's stake was diluted to 37.5%
The Sun
29-05-2025
- Business
- The Sun
Chin Hin Group posts 250% surge in Q1 profit, revenue nears RM1b
KUALA LUMPUR: Chin Hin Group Bhd, Malaysia's leading integrated builder conglomerate, achieved significant revenue growth of 67% year-on-year (YoY) to RM951.95 million first quarter (Q1) ended March 31, 2025 (FY25), compared to RM570.21 million previously, alongside a 250% surge in profit before tax (PBT) to RM67.12 million from RM19.17 million. The building materials division showcased strong operational performance, with a 50% increase in profit before tax (PBT) to RM21.78 million, despite a marginal decline in revenue to RM449.09 million. This profitability improvement was driven by effective cost optimisation and robust demand across key product segments. Notably, profitability from the distribution of building materials and the manufacturing of precast concrete and metal roofing surged, underpinned by enhanced production capacities, higher export demand, and increasing infrastructure activities. Property development significantly accelerated its growth, posting revenue of RM187.29 million, an increase from RM25.61 million previously, with PBT rising substantially due to higher-margin projects and efficient project execution. The construction engineering division continued its impressive growth trajectory, reporting revenue of RM174.17 million, a 78.34% increase YoY, driven by robust progress in ongoing in-house property development projects and improved billing from key infrastructure developments. Meanwhile, Chin Hin Group's subsidiary Signature International Bhd maintained its strong momentum with combined segmental revenue reaching RM247.48 million. Revenue from kitchen cabinet systems totalled RM100.27 million, and interior fit-out works contributed RM147.20 million. Signature continues to deliver solid financial results underpinned by a strong order book of RM907 million in kitchen and wardrobe systems and RM322 million in interior fit-out projects, totalling RM1.23 billion. Another subsidiary, Fiamma Holdings Bhd, further supported the group's growth with consistent contributions, leveraging its extensive distribution network and comprehensive range of home appliances. Commenting on the results, Chin Hin Group's group managing director Chiau Haw Choon said the group's outstanding first-quarter results highlight Chin Hin's successful execution across all business divisions. 'Our building materials, property development, and construction engineering divisions have delivered exceptional growth, underpinned by effective management and strong market conditions. 'Signature and Fiamma continue to complement our group's strategy with strong performances, enhancing our overall market position,' he said in a statement. Looking ahead, the group maintains a positive outlook, supported by strong order books across property development with RM2.1 billion in unbilled sales, construction engineering with RM1.8 billion, and Signature with RM1.23 billion. Despite potential global economic uncertainties, Chin Hin Group is strategically positioned to leverage ongoing projects, operational efficiencies, and a strong market presence to sustain robust growth. 'While we celebrate our financial milestones, we also anticipate the upcoming IPO of Signature Alliance Group Bhd, aiming to raise approximately RM120 million. 'This will further bolster our capabilities and provide additional avenues for growth. 'Our recent move into Menara Chin Hin and the recognition from HR Asia as one of the Best Companies to Work For in 2024 reflect our broader commitment to operational excellence, sustainable growth, and an outstanding workplace culture,' Chiau said.
