‘Buy’ call on LHI retained despite profit warning

brokerage firms maintained their positive stance on LHI on the back of long-term earnings prospects from capacity expansion and robust poultry consumption as it is the cheapest source of protein. (File pic shows Leong Hup International Bhd's corporate office

KUALA LUMPUR: Brokerage firms have maintained their “‘buy” call on Leong Hup International Bhd (LHI) despite its shares falling in active trading after it issued a profit warning.

LHI shares fell 5.88% to 80 sen at 5pm yesterday from 85sen on Aug 9 after the group’s profit warning announcement on its expectation of lower net profit for the second quarter ended June 30, 2019 (2Q19) compared with a year ago due to a decline in the average selling prices (ASP) in most of the products sold by the group particularly in Malaysia.