KUALA LUMPUR: Chin Hin Group Bhd's proposal to split its shares yet again via a 1-for-2 bonus issue is seen as neutral, despite its share price has rocketed 62 per cent in the last month.

Public Investment Bank Bhd (PublicInvest) said the corporate exercise is its second one this year as a means of rewarding its shareholders.

The bonus shares will be issued as fully paid at no consideration and without capitalisation of the company's reserves.

The rationale cited for the exercise was to reward shareholders for their continued support and to provide the opportunity to encourage trading liquidity of the shares.

Meanwhile, PublicInvest said the company has seen some measure of success in addressing its previously loss-making operations as businesses restart post-vaccination and post-transition into Phase 4 of the National Recovery Plan.

The bank-backed research firm has lifted Chin Hin's FY22 and FY23 earnings estimates by an average of 19 per cent to account for better contributions from the listed entities in its stable of companies – Solarvest Holdings Bhd, Signature International Bhd and Chin Hin Group Property Bhd.

"We remain optimistic over the company's prospects over the medium to longer-term premised on the expected rollout of construction and infrastructure-related projects in the coming year, in addition to the increased contributions from the trio," it said in a note today.

PublicInvest retained its 'Neutral' call on Chin Hin with a higher target price of RM1.92 from RM1.35 previously.

It said, however, the sharp rise in share price leaves little upside to its revised target price.