Latest news with #LHI
The Star
29-05-2025
- Business
- The Star
Leong Hup's 1Q25 net profit jumps 80%
PETALING JAYA: Leong Hup International Bhd (LHI) remains cautiously optimistic despite ongoing uncertainties and challenges, as the group sees strong growth potential in per capita chicken and egg consumption across the countries where it operates. 'In addition, we expect margins to be cushioned with the easing of feed input costs, particularly corn and soybean meal. 'In light of the uncertainty and challenging times ahead, the group will exercise prudence in managing its financial resources. Barring any unforeseen circumstances, the group expects to deliver a satisfactory performance in 2025,' the integrated producers of poultry, eggs and livestock feed said. In the first quarter of financial year ended March 31 (1Q25), LHI's net profit jumped 80% to RM101.8mil against RM56.6mil in the year-ago quarter. Revenue, however, dipped 8.3% to RM2.21bil compared with RM2.4bil previously, while earnings per share rose to 2.81 sen from 1.55 sen last year.
Malaysian Reserve
29-05-2025
- Business
- Malaysian Reserve
Leong Hup 1Q profit soars 80% to RM101.8m; declares 1 sen dividend
LEONG Hup International Bhd (LHI) saw a 79.92% jump in net profit to RM101.80 million for the first quarter ended March 31, 2025 (1Q25), driven by higher average selling prices and lower operating costs, with strong contributions from Malaysia, Vietnam, and the Philippines. The group declared a first interim dividend of one sen per share, payable on July 1. Despite the profit surge, quarterly revenue declined 8.30% year-on-year to RM2.21 billion, weighed down by weaker performance in Malaysia and Singapore. While the Philippines saw higher revenue from increased chicken prices and volumes, it was not enough to offset lower egg prices in Malaysia and reduced fresh chicken and duck sales in Singapore. Looking ahead, Leong Hup expects margins to remain supported by easing feed costs, especially for corn and soybean meal. The stock closed unchanged at 61 sen today, with a market cap of RM2.20 billion. –TMR
The Star
29-05-2025
- Business
- The Star
LHI's 1Q net profit jumps 80% to RM101.8mil
KUALA LUMPUR: Leong Hup International Bhd (LHI) remains cautiously optimistic despite ongoing uncertainties and challenges, as the group sees strong growth potential in per capita chicken and egg consumption across the countries where it operates. 'In addition, we expect margins to be cushioned with the easing of feed input costs, particularly corn and soybean meal. 'In light of the uncertainty and challenging times ahead, the group will exercise prudence in managing its financial resources. Barring any unforeseen circumstances, the group expects to deliver a satisfactory performance in 2025,' the integrated producers of poultry, eggs and livestock feed said. In the first quarter ended March 31, LHI's net profit jumped 80% to RM101.8mil against RM56.6mil in the year-ago quarter. Revenue, however, dipped 8.3% to RM2.21bil compared with RM2.4bil previously, while earnings per share rose to 2.81 sen from 1.55 sen last year. LHI said its revenue from sales of livestock and poultry-related products marginally increased by 0.7% from RM1.3bil in 1Q24 to RM1.32bil in 1Q25. While the Philippines saw revenue growth driven by higher average selling price and sales volume of dressed chicken, this was offset by the reduction in Malaysia and Singapore markets, leading to minimal overall change in revenue. LHI said although average selling prices of day-old-chick and broiler chicken in Malaysia increased, the revenue decreased due to lower average selling price of eggs. Singapore's revenue decreased mainly from lower average selling price and sales volume of fresh chicken and lower sales volume of ducks. Meanwhile, the group's revenue from feedmill decreased by 19.2% from RM1.09bil in 1Q24 to RM882.7mil in 1Q25. The decrease was due primarily to lower average selling price in all countries that the group operates in, following the reduction in raw material costs and lower sales volume in Vietnam and Malaysia. LHI has declared a single-tier first interim dividend of 1.00 sen per ordinary share amounting to RM36mil in respect of the financial year ending Dec 31, 2025, payable on July 1.
Yahoo
05-02-2025
- Business
- Yahoo
Could The Market Be Wrong About Leong Hup International Berhad (KLSE:LHI) Given Its Attractive Financial Prospects?
With its stock down 14% over the past three months, it is easy to disregard Leong Hup International Berhad (KLSE:LHI). However, stock prices are usually driven by a company's financial performance over the long term, which in this case looks quite promising. Particularly, we will be paying attention to Leong Hup International Berhad's ROE today. Return on equity or ROE is a key measure used to assess how efficiently a company's management is utilizing the company's capital. In other words, it is a profitability ratio which measures the rate of return on the capital provided by the company's shareholders. View our latest analysis for Leong Hup International Berhad ROE can be calculated by using the formula: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Leong Hup International Berhad is: 18% = RM570m ÷ RM3.1b (Based on the trailing twelve months to September 2024). The 'return' is the amount earned after tax over the last twelve months. Another way to think of that is that for every MYR1 worth of equity, the company was able to earn MYR0.18 in profit. So far, we've learned that ROE is a measure of a company's profitability. Based on how much of its profits the company chooses to reinvest or "retain", we are then able to evaluate a company's future ability to generate profits. Assuming all else is equal, companies that have both a higher return on equity and higher profit retention are usually the ones that have a higher growth rate when compared to companies that don't have the same features. To begin with, Leong Hup International Berhad seems to have a respectable ROE. Further, the company's ROE compares quite favorably to the industry average of 8.8%. Probably as a result of this, Leong Hup International Berhad was able to see an impressive net income growth of 27% over the last five years. We believe that there might also be other aspects that are positively influencing the company's earnings growth. For example, it is possible that the company's management has made some good strategic decisions, or that the company has a low payout ratio. We then compared Leong Hup International Berhad's net income growth with the industry and we're pleased to see that the company's growth figure is higher when compared with the industry which has a growth rate of 19% in the same 5-year period. Earnings growth is a huge factor in stock valuation. The investor should try to establish if the expected growth or decline in earnings, whichever the case may be, is priced in. By doing so, they will have an idea if the stock is headed into clear blue waters or if swampy waters await. Is Leong Hup International Berhad fairly valued compared to other companies? These 3 valuation measures might help you decide. The three-year median payout ratio for Leong Hup International Berhad is 27%, which is moderately low. The company is retaining the remaining 73%. So it seems that Leong Hup International Berhad is reinvesting efficiently in a way that it sees impressive growth in its earnings (discussed above) and pays a dividend that's well covered. Besides, Leong Hup International Berhad has been paying dividends over a period of five years. This shows that the company is committed to sharing profits with its shareholders. Our latest analyst data shows that the future payout ratio of the company over the next three years is expected to be approximately 30%. Regardless, Leong Hup International Berhad's ROE is speculated to decline to 12% despite there being no anticipated change in its payout ratio. Overall, we are quite pleased with Leong Hup International Berhad's performance. Specifically, we like that the company is reinvesting a huge chunk of its profits at a high rate of return. This of course has caused the company to see substantial growth in its earnings. Having said that, on studying current analyst estimates, we were concerned to see that while the company has grown its earnings in the past, analysts expect its earnings to shrink in the future. Are these analysts expectations based on the broad expectations for the industry, or on the company's fundamentals? Click here to be taken to our analyst's forecasts page for the company. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
