market share


Full steam ahead for SMEs

As small and medium enterprises (SMEs) contribute more than one-third to Malaysia’s economy, it comes as no surprise that this segment continues to be recognised by the new government and private sectors as an important growth engine. According to Prime Minister Tun Dr Mahathir Mohamad, the Government is keen to increase the competitiveness of SMEs […]

Maxis shares lower in morning session on weaker Q3 results

KUALA LUMPUR, Oct 19 ― Maxis Bhd’s shares fell in the morning session today after posting weaker third quarter financial results. At 11.15am, Maxis shares were down 13 sen to RM5.38 with 447,100 shares changing hands. Public Investment Bank in a…

Walmart trims profit forecast as it touts investment push

NEW YORK, Oct 17 — Walmart trimmed its full-year earnings forecast yesterday following the major acquisition of India's online retailer Flipkart and vowed to plow ahead with more investment in the battle for retail market share with Amazon….

Leong Hup to make comeback to Bursa Malaysia, to issue up to 1.6b shares in IPO

PETALING JAYA: Poultry firm Leong Hup International Bhd is set to make a comeback on the Main Market of Bursa Malaysia Securities to raise funds for the repayment of bank borrowings, capital expenditure and working capital.

In a draft prospectus filed with the Securities Commission Malaysia, Leong Hup said the initial public offering (IPO) of up to 1.6 billion shares will consist of an offer for sale of up to one billion existing shares and a public issue of 600 million new shares.

Leong Hup is one of the largest fully integrated producers of poultry, eggs and livestock feeds in Southeast Asia. It operates in Malaysia, Singapore, Indonesia, Vietnam and the Philippines. It was taken private in April 2012 together with its feed miller, Emivest Bhd.

The group owns and operates five feed mills in Malaysia, five feed mills in Indonesia and three feed mills in Vietnam. As at June 30, 2018, its total annual production capacity was 3.12 million tonnes.

It also operates 237 farms and hatcheries spread across four countries (Malaysia, Indonesia, Vietnam and the Philippines) and six slaughtering plants spread across three countries (Malaysia, Indonesia and Singapore). Apart from that, it uses 618 contract farms to increase the capacity.

In 2017, Leong Hup's market share by annual production of livestock feeds was about 10.5% in Malaysia, 5.5% in Indonesia and 4.0% in Vietnam.

Leong Hup is planning to explore acquisitions of other poultry producers or feed mills and expand upstream production capacities in its newer markets of Vietnam and the Philippines in order to achieve greater scale and benefit.

It will continue to reduce reliance on contract farms in Malaysia by investing in increasing the capacity and efficiency of its own broiler farm operations.

Last year, Leong Hup recorded a net profit of RM192.57 million, a 5.5% increase from RM182.48 million in 2016. However, its net profit margin declined from 5.1% to 4.5%. For the first six months of 2018, its net profit stood at RM118.35 million.

Leong Hup is targeting a dividend payout ratio of 30% a year.

Credit Suisse Securities (Malaysia) Sdn Bhd and RHB Investment Bank Bhd are the joint global coordinators and joint bookrunners for the IPO.

HSBC UK hit with another IT glitch

LONDON, Oct 16 — HSBC UK said today some of its customers were struggling to access online banking, the second outage of the lender’s digital services in weeks. “We are investigating further and will provide further updates,” the bank said…

Bank of America's lagging loan growth overshadows profit gains

NEW YORK, Oct 16 — Bank of America Corp's loan growth lagged rivals and fees from advising on deals and underwriting bonds fell in the third quarter, sending its share price 1.7 lower even as profit beat expectations. The No. 2 US bank's profit…

StanChart CEO says ‘actively working’ on Indonesian bank stake

NUSA DUA: Standard Chartered Plc is “actively working” on options for its stake in Indonesia’s PT Bank Permata tbk, the British lender’s chief executive Bill Winters said. StanChart and Indonesian conglomerate PT Astra International jointly control the Indonesia bank, each owning 44.56 per cent. There has been persistent speculation in the last few years that […]

The push and pull of housing prices

It has been over a month now since the Sales and Services Tax (SST) was reintroduced in lieu of our former Goods and Services Tax (GST), and all eyes are now on the housing sector as eager Malaysians await for a potential reduction in housing prices. According to the Pakatan Harapan government, the main reason […]

Indonesia’s auto sector expands on the back of local and international demand

Rising domestic and international demand is driving new investment in Indonesia’s automotive industry, with increases in both manufacturing and materials capacity to boost the sector’s growth prospects. Domestic vehicle sales totalled 661,093 in the first seven months of the year, according to data issued by the Association of Indonesian Automotive Industries (GAIKINDO) in mid-August, a […]

Muda unit buys stationery firm in Singapore for RM4.26m

PETALING JAYA: Muda Holdings Bhd’s 70%-owned subsidiary Intrapac (Singapore) Pte Ltd has bought the entire stake in Wenfang Pte Ltd for S$1.42 million (RM4.26 million).

The group said in a filing with the stock exchange the the purchase consideration was satisfied entirely in cash and funded from internally available funds.

Wenfang is principally engaged in importing and distribution of stationery and holds a number of agency products in Singapore under the name of Deli, COMIX, HOPAX, Kapamax and TiTi.

Muda said the acquisition will provide an opportunity for the group to strengthen its leading position in the stationery market in Singapore and to also expand its market share with more agency products of Wenfang in addition to promoting better efficiency and cost advantages in its operations.

Its shares gained 3 sen or 1.8% to close at RM1.70 on 453,400 shares done.