KUALA LUMPUR, June 25 — Leong Hup International Bhd (LHI) remains committed to strengthening its ‘farm-to-plate’ business model, underscored by efforts to achieve further downstream integration and continuous organic growth in a consolidating market in ASEAN.

In a statement today, the fully integrated producer of poultry, egg and livestock feed in Southeast Asia said it had targeted to have 280 Baker’s Cottage outlets in Malaysia by end-2023, from 136 outlets at present.

LHI had acquired the entire equity interest in food manufacturer and distributor The Baker’s Cottage Sdn Bhd for RM17.94 million in June 2020.

“Complementing the group’s downstream focus, a new poultry processing plant in West Java, Indonesia is being constructed and slated for completion by the end of this year,” it said.

The company said, in Vietnam, feed production had been scaling up on the back of strong growth trajectory of livestock feed sales after the group’s acquisition of a feedmill in Dong Thap, which specialises in aquatic feed production, and further capacity expansion in Dong Nai feedmill last year.

Meanwhile, its operations in the Philippines enter the next chapter with the recent commissioning of its maiden feedmill in Sapang in Central Luzon, capable of producing up to 128,000 tonnes per annum of feed, which provides another platform to strengthen its upstream segment in the country.

LHI executive director and group chief executive officer Tan Sri Francis Lau said, with the resumption of economic growth, the group was poised to be a beneficiary of the recovery in income and consumption levels in the markets it operates in.

“To this end, we anticipate an improvement in performance across our markets in 2021, supported by the ongoing vaccine narrative and favourable demand-supply dynamics.”

The group’s ongoing efforts to enhance downstream integration were expected to yield greater resiliency, improve margins stability, and create more value for stakeholders, he added.

As at 12.30 pm, LHI shares rose half-a-sen to 71 sen with 1.15 million units transacted.

BERNAMA

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