KUALA LUMPUR (Feb 23): Leong Hup International Bhd’s net profit was up by 78% to RM52.56 million in the fourth quarter ended Dec 31, 2020 (4QFY20) from RM29.53 million last year, primarily due to better margins from its livestock and other poultry-related products as a result of higher average selling prices of day-old-chicks (DOC) in Indonesia.

Earnings per share increased to 1.44 sen from 0.81 sen in 4QFY19.

Quarterly revenue grew 4.1% to RM1.61 billion from RM1.54 billion a year ago, according to a filing with the local bourse today.

No dividend was recommended for the current quarter.

For the full year, however, the integrated poultry producer’s net profit slipped by 24.9% to RM113.15 million from RM150.58 million last year, while revenue declined marginally by 0.2% to RM6.04 billion from RM6.05 billion.

The group attributed the lower full-year earnings before interest, taxes, depreciation, and amortisation (EBITDA) mainly from its livestock and other poultry-related products segment that decreased by 45.7% to RM145.14 million from RM267.43 million, primarily due to lower margin arising from depressed average selling prices in most of the countries.

Leong Hup also reported higher operating expenses of RM5.82 billion, up 2.7% from RM5.66 billion in FY19.

On prospects, the board is optimistic about the group’s performance in 2021 on the back of improving operating environments and with Covid-19 vaccination being rolled out by governments across the region.

“The group has adequate liquidity for operations and is well-positioned to capture opportunities when the market recovers,” said Leong Hup, adding that all countries that the group operates in expect to post GDP growth in 2021.

Leong Hup’s shares were up half a sen or 0.72% to close at 70 sen today, valuing it at RM2.56 billion. The counter has gained 63% from the trough seen last year at 43 sen on March 19. However, its share price has fallen 36.4% from its initial public offering price of RM1.10.