KUALA LUMPUR: Malayan Flour Mills Bhd
(MFM) outlined its RM100mil capital expenditure (capex) plan for its flour milling business over two financial years, including the current financial year ending Dec 31, 2026 (FY26).
Executive deputy chairman and managing director Teh Wee Chye said the investments aim to strengthen production capacity, operational efficiency, and long-term growth across the group’s flour milling operations in Malaysia and Vietnam.
Approximately RM80mil will be utilised to construct a new milling line at Vimaflour Ltd in Vietnam to increase production capacity and support growing regional demand, as the group’s Vietnam operations are currently operating at near full capacity.
The remaining RM20mil will be used to upgrade, automate, and implement other operational enhancement initiatives across the group’s flour milling operations in Malaysia and Vietnam.
“The flour mill (in North Vietnam) is running at full capacity, and therefore we are expanding from 2,000 tonnes per day to 2,500 tonnes per day,” he told a press conference after MFM’s AGM yesterday.
Teh noted that wheat futures prices have risen primarily due to adverse weather in the United States, the West Asia crisis, and rising fertiliser prices.
Meanwhile, MFM said in a statement that it has a dividend policy of paying out at least 30% of the group’s net profit after tax and minority interests (Patami).
It has paid 3.5 sen per share, or RM43.4mil, to shareholders for FY25.
MFM said the payout was equivalent to 31% of Patami of RM139.9mil, translating into a dividend yield of approximately 6.2% based on the closing share price of 56.5 sen as at May 15, 2026.
For its first quarter ended March 31, 2026, MFM’s net profit rose to RM42.48mil from RM33.09mil in the previous corresponding period, while revenue dipped to RM741.43mil from RM799.29mil a year earlier. — Agencies
