Lay Hong’s Q2 net profit up threefold

PETALING JAYA: Lay Hong Bhd’s net profit for the second quarter ended Sept 30, 2017 rose over threefold to RM12.17 million from RM3.54 million a year ago, mainly thanks to its integrated livestock farming segment.

The integrated livestock segment’s revenue increased 23.29% in the current financial quarter, due to the higher quantity of eggs and higher quantity and price of processed frozen products and pasteurized liquid eggs sold in the current quarter.

The company’s revenue rose 20% to RM204.56 million compared with RM170.98 million in the previous year’s corresponding quarter.

For the six-month period, its net profit rose over four times to RM16.59 million from RM3.96 million a year ago, thanks to its integrated livestock farming segment.

Revenue jumped 17% to RM387.59 million in the first six months compared with RM329.93 million in the previous year’s first six months.

Lay Hong said the entry of NH Foods Ltd into the company as a substantial shareholder recently has marked a major step forward for the company’s chicken product manufacturing business in the form of new product development and market penetration.

“The company is on track with its planned expansion to increase our production capacity. Our egg production now stands at 2.3 million eggs per day to date and is expected to grow to our target. At the same time, our broiler capacity will increase to cater to new requirements in our food processing, taking into consideration our joint venture (JV) with NH Foods Ltd,” it said.

The company is constantly reviewing its strategies and will capitalise on the strength of NH Foods to take the company to greater heights. A new JV company under the name of NHF Manufacturing (Malaysia) Sdn Bhd has been set up and is now actively working on its plant and product development. A total of 11 products have been launched and the response has been encouraging.

“A piece of industrial land in the Selangor Halal Hub, Pulau Indah has been identified for the plant to be set up and we are working on the factory and machinery layout. This is expected to be the site for the JV with NH Foods. Works to acquire and build the factory is progressing in a timely manner according to our planned timeline.”

Lay Hong closed unchanged at 99.5 sen today, with 1.74 million shares traded.