This article first appeared in The Edge Financial Daily on May 10, 2019

KUALA LUMPUR: Egg producer Teo Seng Capital Bhd’s first-quarter net profit more than tripled to RM22.09 million or 7.37 sen per share, from RM6.61 million or 2.2 sen per share a year ago. The group said revenue rose 30.8% to RM150.52 million for the quarter ended March 31, 2019 (1QFY19), from RM115.08 million previously, on the back of continued stable selling prices of eggs, coupled with improved production efficiency.

It declared an interim single-tier dividend of three sen per share amounting to about RM9 million, to be payable on June 26.

“In view of the current stable supply of eggs and feed cost, the directors are optimistic about the financial performance of the group for the remaining nine-month period ending Dec 31, 2019,” the group said in a stock exchange filing yesterday.

Teo Seng Capital, which has seen its share price run up over 40% year-to-date, gained another eight sen or 6.25% to close at RM1.36 yesterday. At its current price, the group has a market capitalisation of RM407.7 million.

The group is controlled by Leong Hup International Bhd, an integrated poultry producer en route to a Main Market relisting next Thursday.

Leong Hup International’s public offering of 937.5 million shares has been oversubscribed 3.64 times, with institutional and final retail prices fixed at RM1.10 per share.