Leong Hup continues to see upside

HLIB Research said Leong Hup’s livestock segment in Malaysia will remain profitable in the near term.

PETALING JAYA: Leong Hup International Bhd is expected to sustain its earnings performance and maintain profitability in the second half of 2023 (2H23) on the back of a more balanced supply and demand dynamic and lower feed prices.

Hong Leong Investment Bank (HLIB) Research noted the removal of subsidies and price ceiling effective Nov 1 has led poultry prices to remain marginally above the previous ceiling prices of RM9.40 per kg helped by stable supply and lower feed prices in particular soybean meal and corn whose prices have declined by 19%-41% from average prices in 2022.