Lay Hong leaps 10 fold to RM4.42m in Q1

PETALING JAYA: Lay Hong Bhd's net profit jumped more than 10 fold to RM4.42 million for the first quarter ended June 30, 2017, against RM419,000 in the previous corresponding period, driven by higher quantity of eggs sold, higher quantity and price of processed and frozen products sold as well as higher contribution from the retail supermarket segment.
Its revenue expanded 15.2% from RM158.95 million to RM183.04 million.
The group told Bursa Malaysia that the entry of NH Foods Ltd as a substantial shareholder recently has marked a major step forward for its chicken product manufacturing business in the form of new product development and market penetration.
"The company is now reviewing its strategies and will capitalise on the strength of NH Foods to take the company to greater heights."
Lay Hong noted that a new joint venture company under the name of NHF Manufacturing (Malaysia) Sdn Bhd has been set-up and is now actively working on its plant set-up and product development.
"As at to-date, a total of 11 products have been launched and the response has been encouraging. The company is continuously researching on viability of new products to be developed and introduced to our production line. It is expected that new products will be launched in future."
Lay Hong revealed that a piece of industrial land in Selangor Halal Hub, Pulau Indah has been identified for the new plant and work is currently being done 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 said factory is progressing in a timely manner in accordance to our planned timeline."
The stock fell half a sen to close at 98 sen, with some 654,900 shares changing hands. It has a market capitalisation of RM596.58 million.