PETALING JAYA: Yenher Holdings Bhd
’s earnings for financial year 2024 (FY24) until FY26 are expected to grow at a compounded annual growth rate (CAGR) of 18.5%, according to Hong Leong Investment Bank (HLIB) Research.
Post-expansion of its manufacturing segment, at full utilisation, manufacturing segment revenue could potentially increase by around five times compared to FY23, the research house added.
“Additionally, it said the group also stands as a beneficiary of the strengthened ringgit from lower manufacturing costs and capital expenditure (capex) on imported machineries. Taking into account these factors, we forecast Yenher’s FY24-FY26 earnings to grow at a CAGR of 18.5%,” HLIB Research said.
Yenher is undertaking an expansion in its manufacturing with the construction of a new plant in Batu Kawan, which is expected to become operational in stages from the second half of 2025.
This new facility would significantly increase the premix production capacity by around 4.5 times.
It would also introduce a new division for complete animal feed production, covering aquaculture, pet, swine and poultry.
This expansion addresses its current capacity constraint, adds a new revenue stream and aims to meet the strong domestic and international demand for its competitive products.
Yenher is principally involved in the manufacturing and distribution of animal health and nutrition products.
The company recently entered into a joint venture (JV) with Denmark-based Fermentationexperts A/S (FE) to form YH European Protein Asia Sdn Bhd (YHEPA), which will manufacture, market and sell plant proteins and fermented palm kernel meal.
Yenher holds a 60% stake in YHEPA.
Initially, YHEPA would source products from FE and begin marketing and selling in the fourth quarter of this year.
Subsequently, in-house production should commence by late 2025.
This JV expedites the growth in the group’s biotech feed additives segment and may have potential tax incentives.
