17th Jan, 2006: PETALING JAYA - Local eggs manufacturer Huat Lai Resources Bhd sees its exports to Singapore contributing to about 40% of revenue this year, up from 30% last year, says managing director Lim Yeow Her.
“We export 35% of our total daily production of 2.3 million eggs to Singapore. We are optimistic of achieving our projected numbers because of the high demand for eggs from the republic,” he told StarBiz by email.
For the third quarter ended Sept 30, 2005, the group posted a net profit of RM2.4mil on the back of RM51.79mil turnover.
Lim Yeow Her
“It had been a good year for Huat Lai in 2005 compared to 2004.
The company achieved much-improved results following the decrease in the cost of feed, which remained stable for the whole year,” he added.
Last year, the group set up a new feed mill plant which started operations in December.
The plant is able to produce 30 tonnes of feed per hour in the form of pellets and customised medicated feed for livestock affected by disease.
“The company had invested about RM24mil to establish the plant last year as part of the integration of the group's activities to enhance our market position and capture a larger customers base in the local and the Singapore markets this year,” he said.
Last year, Huat Lai also branched into producing day-old chicks using advanced technology from Belgium.
“We invested about RM30mil in the new plant, and it is now one of the top hatchery plants in Malaysia,” Lim said.
On the group's earnings prospect this year, he said: “Barring any unforeseen circumstances, 2006 will be an equally good year, if not better, for Huat Lai.”
Lim added that with the new feed mill plant and broiler production integrating well with Huat Lai's other activities, he was optimistic that group earnings would be greatly boosted this year.
On Jan 12, Singapore's Temasek Holdings (Pte) Ltd announced that it had emerged as a substantial shareholder of Huat Lai with a 9.34% stake in the company, or 5.57 million shares.
Lim said, however, that there would not be any changes in Huat Lai's business model or core business.