Near-term headwinds not a concern for Leong Hup

The near-term headwinds include the government’s recent move to ban the exports of chicken starting from June 1, 2022 in an attempt to manage food inflation and ensure food security in the country, will likely hurt Leong Hup's bottomline

PETALING JAYA: Leong Hup International Bhd’s (LHI) financial performance will improve from the third-quarter 2022 (3Q22) onwards amid near-term headwinds.

The near-term headwinds include the government’s recent move to ban the exports of chicken starting from June 1, 2022 in an attempt to manage food inflation and ensure food security in the country, will likely hurt its bottomline. Prices of inputs particularly, soybean meal and corn were high but have since weakened since 1Q22, and this will result in lower feed costs.