Leong Hup’s Q2 net profit surges 87.5 pct to RM30.5 mln

KUALA LUMPUR, Leong Hup International Bhd’s (LHI) net profit surged 87.5 per cent to RM30.50 million in the second quarter ended June 30, 2021 (Q2 FY2021) from RM16.27 million in the same period last year.

In a statement to Bursa Malaysia today, the integrated poultry company said its revenue in Q2 FY2021 jumped 30.1 per cent to RM1.85 billion from RM1.43 billion previously, mainly supported by its livestock and poultry related products segment.

“The segment rose 22.9 per cent to RM992.46 million in Q2 FY2021 from RM807.28 million in the corresponding period a year ago.

“This is attributed to robust sales volume growth and resilient average selling price (ASP) of day-old-chicks in Indonesia and Malaysia, broiler chickens in Malaysia and the Philippines, as well as higher business-to-consumer channel contribution in Malaysia,” it said.

LHI said its feedmill business revenue grew 39.7 per cent to RM858.88 million in Q2 FY2021 from RM614.69 million in the same period last year, as Indonesia and Vietnam reported higher sales volume and ASP of livestock feed.

The company said Indonesia continued to be the largest revenue contributor to the group by contributing RM697.29 million (37.6 per cent) to the group’s total revenue in Q2 FY2021.

This is followed by Malaysia (RM479.33 million or 25.9 per cent), Vietnam (RM438.53 million or 23.6 per cent), Singapore (RM197.80 million or 10.7 per cent) and the Philippines (RM40.86 million or 2.2 per cent).

For the cumulative six-month period ended June 30, 2021 (H1 FY2021), LHI saw its net profit soar 164.9 per cent to RM100.83 million from RM38.06 million previously, while revenue was 23.5 per cent higher at RM3.53 billion from RM2.86 billion in H1 FY2020.

Touching on the upcoming poultry processing plant in West Java, Indonesia, LHI said the plant is slated to begin construction in Q3 2021 and commence operations in early 2022.

“The facility is expected to enable its Indonesian operations to have better control over the sporadic demand-supply imbalance of broiler chickens.

“This would provide some degree of insulation against price volatility of live poultry,” it said.

On the group’s prospects, executive director and group chief executive officer Tan Sri Lau Tuang Nguang is anticipating some short to medium-term headwinds to persist as a result of ongoing fluctuations in the demand and adjustments in the supply of poultry products.

“Movement restrictions to a varying extent are still in force for most of the group’s operating markets.

“The durability of the group’s recovery is, therefore, contingent upon the extent to which the COVID-19 pandemic is effectively controlled and restrictions are eased in each of the group’s operating markets,” he said.

Source: BERNAMA News Agency