September 1, 2025

YENHER anticipates improved performance in 2H, driven by solid growth in poultry sales

Malaysia's YENHER Holdings Bhd, which reported a 16% decline in first-half net profit, expects a stronger second half supported by robust poultry segment sales and an expanding customer base through proactive marketing.

With that anticipation, Hong Leong Investment Bank Bhd (HLIB) has retained its 'Buy' call on its shares with a 52-week target price of RM1.41. The counter closed at 75.5 sen yesterday.

"In addition, the sustained strength of the Ringgit should lift manufacturing margins, given that about 90% of the group's input costs are USD-denominated.

"Beyond FY25, we anticipate a step-change in earnings from the commissioning of new capacities — including the black soldier fly plant in 1Q26, and expanded biotech feed additives, premix, and complete feed production by June 2026. These expansions, alongside resilient demand fundamentals, will reinforce Yenher's position as a structural beneficiary of Malaysia's evolving animal nutrition industry," HLIB said in a note released today.

In an exchange filing yesterday, the manufacturer and distributor of animal health and nutrition products said its net profit for the first half ended June 30, 2025 was RM8.4 million, 16% lower compared to the same period last year, on a turnover of RM150.0 million.

In its report, KIBB said it deemed the results to be within its expectation, as it expected the higher operating costs incurred during the period arising from the fire incident to be recoverable in the subsequent quarters through insurance claims.

The company, based in Seberang Perai Selatan, Penang, manufactures premixes, complete feed, formulated products and biotech animal feed ingredients mainly for the poultry and swine subsectors.

Its distribution segment focuses on the distribution of feed additives, vitamins, minerals, veterinary pharmaceuticals, veterinary vaccines, farm equipment, livestock reproduction products and companion animal products, that cater for the poultry, swine, ruminants, aquaculture and companion animal's subsectors.

-      The Malaysian Reserve