LEONG Hup Holdings Bhd aims to list its 51% -owned unit Lee Say Sugar Factory (Pte) Ltd on the Singapore Exchange by next year, said managing director Datuk Francis Lau.
Lee Say Sugar Factory, which Leong Hup acquired six years ago, is not a sugar factory despite its name. It is a chicken processing facility that processes 30,000 chickens a day. The company generated about S$3.5mil in profit a year, Lau told StarBiz.
The Leong Hup group also plans to set up a processing plant in Indonesia to widen its earning base in the country in the near future. The plant would have the capacity to process 100,000 birds a day, Lau said.
He said that based on the consumption of broiler chickens per capita of about 3.5kg and population of 220 million in Indonesia, there was plenty of room for expansion in that country.
“As we have established a stable footing in the poultry business in Indonesia since 1994, our familiarity with the poultry industry and the experience gained will enable us to easily tap the market there,” Lau said, adding that the foreign operation was expected to contribute significantly to the group's profits.
Leong Hup chalked up an impressive pre-tax profit of RM22.8mil on a higher turnover of RM291.4mil for the six months ended Sept 30. It registered a pre-tax loss of RM2.3mil on a turnover of RM247.1mil (excluding the disposal of land for RM23.2mil) in the previous corresponding period.
For the second quarter to Sept 30, its pre-tax profit grew 135% to RM16mil on 28% higher revenue of RM163.5mil.
Lau attributed the better financial results for the quarter to the stable and continued improvement in the selling prices of broiler chicken, day-old chicks and eggs.
He said the stable demand and supply situation was a result of the government's stringent control over frozen chicken imports, and the steps taken by the Federation of Livestock Farmers' Association of Malaysia to monitor the production of broiler chicken and day-old chicks.
With the present favourable poultry market, coupled with its future possible and viable plans, Leong Hup expects to record consistent profits over the next few years.
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