Big integrated poultry players less impacted by higher feed costs

TA Securities Research estimates that Leong Hup and QL Resources would see 2021 y-o-y earnings per share (EPS) growth of 61.2% and 12.6%, respectively.

LARGE poultry and integrated agro-based groups such as Leong Hup International Bhd and QL Resources Bhd would still deliver decent earnings in 2021, despite the surge in the cost of raw materials used in chicken feed.

A poultry industry observer told StarBizWeek that size and integration enabled the large scale businesses to import feed input and conduct feed sales, which are expected to be profitable.