LTKM to look at growing property development business

KLANG: Poultry farming company LTKM Bhd, which first dabbled into property development in 2011, intends to venture, in a big way, into expanding its revenue stream, said its group managing director Datuk Tan Kok.
"We have the concept in mind but it is still premature (to divulge the information)," he told reporters after the company's AGM here yesterday.
Tan said the property development segment contributed RM4.72 million or 3% of the group's revenue in financial year ended March 31, 2014 from the balance sales of its maiden residential properties project in Banting, Selangor.
"We are learning from that project (its maiden project in Banting). We ventured into property in 2011 but with a very small contribution," he said.
The company, currently has 20 acres of land in Jenjarom, Selangor, which is slated for future development, he said.
"We have not decided yet. The land is for future development," he said.
Tan said the company is still looking for land in niche areas especially in the Klang Valley and Johor Baru.
He pointed out however that the poultry segment will remain the group's core business and therefore the company is exposed to volatility of the commodity-based price of major raw materials namely corn and soybean.
Tan said however, the company is working to minimise the impact of such volatilities and maximise operational efficiency in every sector of its organisation.
He said another major concern is the risk of an outbreak of the bird flu virus adding that the company is committed to put in place an effective, extensive and efficient bio-security system for their farms, in addition to control measures by relevant authorities.
For FY2014, its poultry segment's revenue was RM169.57 million, representing 95.23% of the group's revenue.