recorded a jump in net profit to RM15.16mil in the first quarter ended March 31, 2021, as compared to RM1.43mil in the prevous corresponding quarter on the back of improved sales revenue.Revenue for the quarter was RM307.92mil, 20.14% higher as compared to RM256.31mil in the same quarter last year.
According to Chin Hin, the revenue increase was owing to improved contributions from its building materials sector, manufacturing wire mesh and the manufacturing of autoclaved aerated concrete and precast concrete segment.
"Sales was brisk especially from the dealers and warehouse in the distribution of building materials sector due to renovation or upgrading works from end users with the fast-approaching Raya and the higher demand for steel as prices were expected to increase throughout the beginning of 2021 as world supply remained tight and demand rebounded from pandemic levels.
"The hike in demand for the manufacturing of wire mesh segment experienced the same situation as their product are steel related," it said.
It added that there was a hike in the sales of its Industrialised Building System (IBS) products as the products can reduce construction time by approximately 20%, hence easing the pressures of labour shortage resulting from the government's freeze on foreign labour.
Starken Drymix also experienced a 29.09% growth in turnover as a result of market acceptance of the brand and the extra effort in securing market share.
The group is optimistic of delivering a better result this year following the strong recovery in the preceding and current quarter performance.
"The management continued to initiate cost cutting measures via digitalisation and automation across officewide and plantwide respectively to lower its operation cost and to stay competitive in the market," it said.