KUALA LUMPUR: Chin Hin Group Bhd has completed the acquisition of a 50.8% stake in Chin Hin Group Property Bhd (CHGP), making it a subsidiary of the integrated building materials manufacturer and distributor.

       In a statement, Chin Hin said CHGP will be the third public listed company to be included in the Chin Hin conglomerate, together with Solarvest Holdings Bhd and Signature International Bhd.

       Chin Hin said the acquisition is part of managing director Chiau Haw Choon’s (pic) aspiration of expanding the group into a diversified conglomerate, rather than just focusing on one particular business.

       “The acquisition of CHGP will enable Chin Hin’s business to diversify and tap into the property development sector, where most of the Chin Hin customers are currently hoovering at.

       “Chiau’s expansionary approach can also be traced in CHGP. His Midas touch was proven in 2017 when CHGP (formerly Boon Koon Group Bhd) diversified into property development from its then existing business of manufacturing rebuilt commercial vehicles.”

       Chin Hin said the diversification of CHGP would eventually turn it into a profitable company, having been in the red for the previous five consecutive financial years.

       “Following the success of the turnaround plan, CHGP adopted its current name some time in 2018.”

       Chin Hin said CHGP is currently on an acquisition spree to acquire new land to further enhance its land bank for further development, which has an estimated gross development value of RM4bil.

       CHGP is also eyeing the possibility of acquiring companies in the construction or development-related industries to boost its profitability, according to Chin Hin.

       This includes CHGP’s proposal to acquire a 65% equity interest in construction firm Kayangan Kemas Sdn Bhd, a grade seven contractor registered with the Construction Industry Development Board.

       “Upon completion of the aforesaid acquisition, CHGP will diversify its business activities to include that of a construction business to supplement its existing property development business.

       “Premising upon the ongoing expansionary effort undertaken by CHGP, the imminent recovery of the real estate sector and barring any unforeseen circumstances, the management of Chin Hin estimates that CHGP will record a profit of over RM25mil in the upcoming financial year, based on CHGP’s current order book and project pipeline,” said Chin Hin.

       Chin Hin said its stake in CHGP would allow it to consolidate RM12.5mil worth of CHGP’s profit.