PETALING JAYA: Lay Hong Bhd
saw its net profit more than triple to RM12.17mil for the second quarter ended Sept 30 from RM3.54mil in the corresponding period last year on higher revenue.
During the quarter in review, the egg and poultry producer posted revenue of RM204.56mil, up 19.6% from RM170.98mil in the previous corresponding quarter, driven by the integrated livestock farming segment.
The group’s earnings per share (EPS) rose to two sen from 0.58 sen previously.
Lay Hong said its integrated livestock farming segment’s revenue increased 23.29% year-on-year (y-o-y) due to the higher quantity of eggs and higher quantity and price of processed frozen products and pasteurised liquid eggs sold in the current quarter. Its retail supermarket segment’s revenue, on the other hand, grew 3.81% y-o-y due to the opening of three additional outlets.
For the six-month period, Lay Hong’s net profit rose four-fold to RM16.59mil from RM3.96mil previously, resulting in its EPS rising to 2.73 sen from 0.66 sen.
The group’s revenue rose 17.5% y-o-y to RM387.59mil in the first six months of 2017.
Lay Hong shares closed unchanged on Tuesday at 99.5 sen.
Meanwhile, Lay Hong has acquired the remaining 3% stake it did not already own in Innobrid Sdn Bhd for RM415,200 cash.
Lay Hong now controls 100% of the broiler farming and supplying company.
Lay Hong said it was on track with its planned expansion to increase its production capacity.
“Our egg production now stands at about 2.3 million eggs per day and is expected to grow to our target. At the same time, our broiler capacity will increase to cater to new requirements in our food processing, taking into consideration our joint venture (JV) with NH Foods Ltd,” the group said.
Lay Hong said it had identified a piece of industrial land in the Selangor Halal Hub, Pulau Indah, for the plant to be set up, and it was currently working on the factory and machinery layout.
“This is expected to be the site for the JV with NH Foods. Works to acquire and build the said factory is progressing in a timely manner in accordance to our planned timeline,” it added.