Leong Hup profit soars nearly 80%

Malaysia's Leong Hup International sees sharp profit surge despite revenue dip, as higher chicken prices and lower costs boost margins in key markets.

Jess Ramanee

aviNews Asia

Leong Hup International, a major integrated poultry producer in Malaysia, reported a 79.92% surge in net profit for the first quarter ended March 31, 2025 (Q1 2025), as stronger average selling prices and lower operating costs fueled earnings, with key contributions from Malaysia, Vietnam, and the Philippines.

• Net profit rose to USD 21.7 million from USD 12.1 million in the same period last year.
• Earnings per share increased to USD 0.00061 from USD 0.00034.
• The company declared a first interim dividend of USD 0.00022 per share, payable July 1.

However, quarterly revenue declined 8.30% year-on-year to USD 471 million, down from USD 514 million, primarily due to weaker performance in Malaysia and Singapore, which offset gains in the Philippines.

• The Philippines market delivered growth on the back of higher average selling prices and volumes of dressed chicken.
• In contrast, revenue in Malaysia was hurt by lower egg prices, while Singapore saw a decline due to weaker fresh chicken and duck sales.

Looking ahead, Leong Hup expects margins to improve, supported by lower feed costs, particularly for corn and soybean meal.

The company’s shares closed flat at USD 0.13, with a market capitalization of USD 468 million. Year-to-date, the stock has gained 0.83%.