Hock Soon Capital expands as Malaysia’s poultry sector heats up

Content available at: Melayu (Malay)

Hock Soon Capital Bhd, one of Malaysia’s top egg producers, is set to launch an initial public offering (IPO) to raise funds for major expansion. The company plans to use the money to build a new modern poultry farm in Teluk Intan, Perak, featuring 25 closed-house coops designed for improved efficiency and biosecurity.

Increasing demand in Malaysia

It will also upgrade its feedmill and egg grading center to support its growing daily output of nearly 1.5 million eggs. These developments are expected to help Hock Soon meet increasing demand in Malaysia’s central and northern regions, where its ‘QPlus’ premium eggs are already popular.

For the financial year ending September 2024, Hock Soon reported a revenue of about USD 32 million, up 3.5% year-on-year. Profit after tax rose by 19% to around USD 8.6 million. Over 95% of the company’s revenue came from egg sales.

As part of the IPO, the company will offer 150 million shares—100 million new shares and 50 million existing ones from the founding Ong family. After the IPO, the Ongs will still control 70% of the business.

Output to rise

Hock Soon’s expansion comes at a time when Malaysia’s poultry sector is experiencing steady growth. Industry output is expected to rise from 1.86 million metric tons in 2023 to 2.05 million by 2028. Demand is increasing both domestically and for export, especially in halal-certified markets across Asia.

Several other producers are also expanding. Teong Choon Poultry Farm recently opened Malaysia’s first large-scale cage-free egg facility, housing over 16,000 hens. This responds to a rising consumer interest in animal welfare and aligns with global trends favoring ethical farming practices.

Graph showing the projected growth of poultry production in Malaysia from 2023 to 2028. It highlights a steady rise from 1.86 million to 2.05 million metric tons—reflecting the sector’s strong momentum, supported by both private expansion and government incentives.

At the same time, the Malaysian government is encouraging modern farming with tax incentives announced in Budget 2024. These aim to support innovation and long-term food security across the sector.

With new investments and evolving consumer preferences, Malaysia’s poultry industry is entering a new phase of growth—one that combines tradition with technology and welfare-conscious production. Hock Soon’s IPO marks another step toward this transformation.