PETALING JAYA: Having achieved its strongest performance since its listing in 2021, Yenher Holdings Bhd
is set to capitalise on strategic growth and opportunities, particularly from its new facilities.
In a report, Hong Leong Investment Bank Bhd (HLIB) said Yenher’s third-quarter (3Q) core earnings surged to RM6.6mil, primarily driven by the robust premix sales of the poultry segment.
Yenher’s operational performance was robust and the momentum boosted the distribution segment as it continued to capitalise on its expanded customer base to cross-sell other distributed products, according to the research house.
The group emerged from its toughest period in 2022 and 2023 when premix sales declined due to the African Swine Fever outbreak.
This caused the group to pivot to premix sales for the poultry segment, which has started to show positive results in its 3Q results.
Additionally, the aquaculture segment offers significant potential as Yenher aims to produce complete feed which could transform the industry.
On its new factory, construction is at 75% as of last December and operations should commence this month as the necessary machinery had arrived.
Currently, Yenher’s premix segment stands at 110% to 120% with workers meeting surplus orders through overtime.
To cater to the additional capacity from the new factory, Yenher is actively targeting export markets, especially for the new complete feed segment for poultry and swine.
Strong latent demand is evident as many poultry farmers opt for complete feed with their own formulations, driving full capacity utilisation across feed millers.
“Given the strong demand, Yenher is confident of scaling up utilisation for this division to over 50% within a short time frame,” it noted.
