Leong Hup posts net profit of RM43mil

  • Business
  • Tuesday, 28 Feb 2006

KUALA LUMPUR: Leong Hup Holdings Bhd posted a net profit of RM43.4mil for the nine-month period ended Dec 31, 2005, compared with a net loss of RM5mil in the same 2004 period. 

It posted pre-tax profit of RM55.8mil against a pre-tax profit of only RM12,000 in 2004. 

Leong Hup's revenue for the nine-month period rose 4.6% to RM521.7mil from RM498.6mil previously. 

For the third quarter, Leong Hup reported RM17.1mil net profit, which was more than triple the RM4.3mil achieved in the previous corresponding period.  

Revenue for the quarter was RM192.2mil, a 11.1% increase from RM172.9mil previously, while pre-tax profit increased to RM21.7mil from RM6.8mil. 

The poultry breeder proposed an interim dividend of 5% less 28% income tax for the financial period under review to be paid on a date to be announced later. 

“The better financial performance was due to better productivity of our farm operations, the lower feed cost and better selling price of poultry products,” executive director Datuk Francis Lau told StarBiz. Lau said despite the recent outbreak of isolated bird flu case caused by “kampung” chicken in Selangor, the demand for poultry products remained stable in the local market. 

He added that sales of poultry products were expected to pick up this week as there had been no new cases of bird flu reported and patients who were admitted to the hospital earlier tested negative.  

“We are optimistic that the performance of the group for the financial year ending March 31, 2006 will be satisfactory,” he said. 

Meanwhile, duck breeder Emivest Bhd, which is controlled by Leong Hup, registered a pre-tax profit increase of more than 130% at RM4.3mil for the final quarter of 2005, compared with RM1.8mil for the corresponding quarter of 2004.  

Its revenue for the quarter increased 0.02% to RM82.1mil. The company attributed the surge in pre-tax profit to significantly lower cost of production feed. Net profit increased 30.1% to RM2.2mil, on the back of “more efficient production” and “higher sales volume.”  

Emivest's revenue for the financial year ended Dec 31, 2005 was up 6.7% to RM320.8mil and pre-tax profit rose sharply at 126% to RM15mil. Net profit for the period also increased 112% to RM9.8mil from RM4.6mil in 2004. 

 LHH :  [Stock Watch]  [News]

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