PETALING JAYA: Despite the recent outbreak of African Swine Fever (ASF) in some swine farms in the country, Yenher Holdings Bhd
’s earnings are not anticipated to be significantly affected.
Hong Leong Investment Bank (HLIB) Research said it does not expect any material earnings impact on Yenher as ASF outbreaks are not new and have occurred repeatedly in Malaysia.
It noted that Yenher’s earnings impact even at the height of ASF in 2022 and 2023 was relatively moderate. The company has also reduced its reliance on the swine segment since 2024.
“The ASF outbreak could turn into a silver lining as heightened media attention may push authorities to accelerate vaccine approval,” the research house said, adding that Yenher holds the exclusive distributorship for the ASF vaccine, but has yet to receive approval in Malaysia.
“Given food security concerns and inflationary pressures, there is a strong case for approval.”
Maintaining its “buy” stance on Yenher with an unchanged target price of RM1.45 per share, HLIB Research said while the recent share price weakness appears to be driven by news on the ASF outbreak and a recent fire incident at its premix plant, it does not anticipate any material financial impact from either event.
It sees strong value in Yenher, as the company is poised to enter a multiyear growth trajectory.
Yenher gained 0.56% yesterday to close at 89 sen.
