PETALING JAYA: Hock Soon Capital Bhd stands ready to ride a wave of expansion and favourable tailwinds in Malaysia’s egg production market.
Malacca Securities Sdn Bhd said at its core, Hock Soon farms poultry and produces eggs using automated closed-house systems, backed by an in-house feed mill for ordinary and premium lines. It sorts and distributes under the “QPlus” brand and third-party labels to wholesalers, retailers and food manufacturers.
The group’s Teluk Intan project promises a 103.6% daily egg production boost, adding 1.53 million eggs via 25 new coops over 60 months. This gradual rollout supports customer growth, complemented by a Bidor, Perak, feed mill upgrade to 225 metric tons per day by fourth-qurter 2027.
Malacca Securities said Hock Soon’s vertical integration – from feed to grading – ensures efficiency, with automation curbing labour and biosecurity risks.
Further, the research firm said a firmer ringgit, down from RM4.80/USD in 2024 to below RM4.00, slashes costs for USD-sourced feed (70% of FY25 purchases). This, alongside integration, should widen gross margins meaningfully, the firm said.
Moving on, Malacca Securities said egg prices have climbed since August 2025, as per Department of Veterinary Services data, offsetting subsidy losses.
However, Visit Malaysia 2026 will spur Horeca (hotel, restaurant and cafe) demand. Meanwhile, a Q1 2026 Singapore Food Agency licence targets import-reliant markets, hedging domestic volatility with higher-value sales, the firm noted.
Touching on distribution and market position, Malacca Securities said Hock Soon’s QPlus eggs grace Lotus’s, HeroMarket and Jaya Grocer, with subsidiary Al-Kauthar Trading hitting wet markets.
Independent market research data pegs FY24 market share at 2.4% by revenue (RM143.8 million vs RM5.98 billion industry) and 2.6% by volume (401.8 million vs 15.4 billion eggs).
“Hock Soon’s expansions will grow this slice,“ the research firm said.
On earnings, Hock Soon’s FY25 revenue fell 2.6% year-on-year to RM147.4 million from RM151.4 million. Table eggs dipped to RM142.5 million (average selling price 32 sen vs 36 sen), hit by competition and demand shifts to unbranded lines.
‘Others’ segment slumped to RM4.9 million from RM7.6 million, lacking raw material and manure sales.
Assets rose to RM189.5 million (property, plant and equipment gains), liabilities to RM45.1 million (loans), with equity at RM144.3 million and net gearing 0.1 times prelisting.
Malacca Securities said as an integrated poultry producer, listing at 60 sen per share, the stock could deliver RM33.2 million in FY26 earnings, rising to RM35.8 million in FY27 and RM38.5 million in FY28.
A projected FY26 earnings dip reflects subsidy cuts, but Malacca Securities still sees fair value at 66 – a 10% upside from initial public offering – based on a 9.5 times price earnings applied to mid-FY27 earnings per share of 6.9 sen.
Hock Soon Capital is scheduled to be listed on Bursa Malaysia’s Main Market on Feb 13.
