Farmiera chief financial officer Chin Chien Hwi.
PETALING JAYA: Farmiera Bhd
’s future growth will be led by its upstream expansion plan in the poultry industry and increased consumption of chicken in Malaysia.
Farmiera chief financial officer Chin Chien Hwi said the group’s focus remains on upstream integration through parent-stock farms to improve the company’s operational efficiency and bottom line.
“Moving forward, we will continuously expand our breeder farms, with our main priority being to enhance operating efficiency,” he told the media following the group’s listing yesterday.
Farmiera debuted flat on the ACE Market of Bursa Malaysia at 25 sen per share, unchanged from its initial public offering (IPO) price, with an opening trade volume of 12.14 million shares.
The company’s listing gave it a market capitalisation of RM112.5mil and a price-to-earnings (PE) multiple of 16.07 times based on its financial year ended Dec 31, 2024 earnings.
Farmiera closed up 2%, or 0.5 sen to 25.5 sen with 56.47 million shares traded on the first trading day.
The group’s IPO had drawn strong investor interest ahead of its listing, with its public issue of new shares oversubscribed by 16.69 times.
Currently, Farmiera is engaged in poultry farming and processing, supplying live broilers and distributing halal-certified raw poultry products.
The group operates 15 broiler farms and two poultry processing plants.
It also engages 44 contract farms for broiler supply as at Sept 23, 2025.
Following its listing, the group intends to enhance the supply chain of its poultry farming and poultry processing business by expanding vertically upstream to build new parent stock farms and a new hatchery for its future day old chicks (DOCs) breeding operation.
Currently, the DOCs Farmiera is using in its poultry farming are sourced from local parent stocks farms.
With the upstream vertical integration, the group will be able to control the breeding and hatchery processes more efficiently as well as being able to better manage the costs and quality of the DOCs.
Of the RM29.25mil raised from its listing exercise, RM22.1mil has been allocated for the setting up of new parent stock farms and hatchery.
While Chin acknowledged that the group’s upstream expansion may have different operational aspects from its current activities, he said Farmiera is able to manage it, backed by its experience in poultry farming, long-term supplier relationships, and the recruitment of experienced employees in the sector.
He added the group is optimistic of its outlook looking ahead, supported by the continued affordability of chicken, with it being the cheapest source of protein in the market, and the expected boost in demand from higher tourism activity come Visit Malaysia Year 2026.
The government had ended chicken subsidies on Nov 1, 2023.
Chin said the group welcomes an open market for chicken, noting that pricing is ultimately determined by supply and demand dynamics.
When asked how Farmiera manages price fluctuations, Chin said pricing is still subject to market forces.
“For us, we can only focus on our operating efficiency which allows us to reduce costs and improve our profit,” he said.
With regards to the company’s approach to technology and innovation in poultry farming, Chin said the company employs modern closed-house farming systems, replacing traditional open-house methods to ensure better environmental control and livestock welfare.
“We have installed ventilation systems to ensure proper airflow, as well as the use of the Viper system that automatically controls temperature and humidity.
“These upgrades help us reduce manpower requirements and, ultimately, improve our profit margins,” he said.
BIMB Securities said it values Farmiera Bhd at 21 sen per share, based on financial year 2026 (FY26) earnings per share of 2.2 sen and a target PE of 9.6 times, in line with the industry average.
The research house said the group’s FY24 revenue of RM561.1mil highlights its smaller scale relative to larger integrated players like CAB Cakaran Corp Bhd (RM2.3bil revenue) and CCK Consolidated Holdings Bhd (RM1.1bil revenue).
“Nevertheless, the group’s vertical expansion into breeding and hatchery operations is expected to enhance cost efficiency, supply stability, and long-term growth potential, supporting its move toward becoming a fully integrated poultry producer in Malaysia,” it said in a report.
