September 27, 2010

Malaysia's Teo Seng eyes 14% output growth

Teo Seng Capital Bhd (TSC) aims to increase its daily egg production from 1.8 million to 2.1 million towards the end of 2010.

Chairman Lau Jui Peng said the additional 300,000 eggs would come from the company's two new farms in Yong Peng, Batu Pahat, in which it had invested RM11 million (US$3.56 million).

"The investment will put us in a better position to emerge as the largest listed layer farming entity in the country," he said. Lau said the company now exported 30% of its egg production to Singapore, up from 10%.

The company has 16 farms in Batu Pahat with over two million layer birds. Managing director Nam Yok San said that besides investing in new layer farms, the company would also venture into aquaculture.

TSC wants to diversify its earnings from mainly egg production to breeding freshwater fish. "Never put all your eggs in one basket," Nam said.

He said the company was currently in the final phase of constructing 14 ponds in Batu Pahat to rear tilapia, an increasing popular fish. He said the venture into freshwater fish breeding would make TSC the first listed layer farming company to enter such an activity.

Nam said plans in the pipeline included opening egg farms in Cambodia and Vietnam. However, the company had no specific timeframe to start operations in the two countries.

"We have conducted feasibility studies there and based on our findings, prospects in Cambodia and Vietnam are good as eggs consumption there is still less than 5% a year," he said.

For the financial year ended March 31, 2010, TSC registered net profit of RM15.15 million (US$4.90 million) on RM167.96 million (US$54.36 million) in revenue compared with RM12.61 million (US$4.08 million) and RM181.43 million (US$58.72), respectively in FY09.