by M. JAY SHIELA
CHIN Hin Group Bhd saw its shares shoot up to 21 sen or 5.25% to RM4.21 in early trading today.
The building material distributor was among the top gainers in the local stock market as at 12pm today, with more than 2.6 million shares traded. It hit an intra-day high of RM4.28.
In its latest filing on March 28, Chin Hin said it had on March 27 disposed of 8.6 million ordinary shares in Hextar Industries Bhd (HIB) that resulted in a gain of RM50,000.
Chin Hin plans to use the proceeds for the group’s working capital.
Chin Hin revealed that it had acquired 40.1 million HIB shares by way of direct transfer at an average price of 61.3 sen per HIB share, representing 1.46% for a total purchase consideration of about RM24.6 million, between December 14, 2022 to February 28, 2023.
“The HIB’s shares were disposed at a premium of 12.45 sen or 25.13% to the five-day-volume weighted average price (VWAP) of HIB’s shares up to and including March 27, 2023 of 48 sen,” Chin Hin said.
Chin Hin said its decision to invest in HIB is based on its future earnings prospects. HIB is involved in three main businesses, namely manufacturing and distribution of fertilisers, supply of heavy equipment tools, and rental solutions,
For the financial year ended December 31, 2022 (FY22), Chin Hin reported a net profit of RM97.8 million on a turnover of RM1.6 billion.
Its top shareholders are Divine Inventions Sdn Bhd with a 37.44% stake, Chiau Beng Teik (20.75%) and Chiau Haw Choon (5.73%). It has a market capitalisation of RM7.5 billion.