KUALA LUMPUR (Aug 28): Lay Hong Bhd's net profit for the first quarter ended June 20, 2017 (1QFY18) lifted nearly ten-fold from RM419,000 or 7 sen per share last year to RM4.42 million or 73 sen per share, in line with stronger revenue growth across its business segments.

Quarterly revenue increased from RM158.95 million to RM183.04 million, representing a 15.16% growth.

According to Lay Hong's filing with Bursa Malaysia, the company said its integrated livestock farming segment contributed stronger revenue thanks to higher quantity and price of processed and frozen food sold, and the higher sales of eggs being boosted by its new layer farm completed in the quarter.

Meanwhile, its other business, the retail supermarket segment, posted higher revenue as well, supported greater demand during the Hari Raya festive season.

On prospects, Lay Hong said in its bourse filing that the company is on track with planned expansion to increase its egg and broiler production capacities, especially in view of the joint venture it had set up with NH Foods Ltd.

It said that the entry of NH Foods Ltd into the company as a substantial shareholder recently had marked a major step forward for the company's chicken product manufacturing business in the form of new product development and market penetration.

“The company is now reviewing its strategies and will capitalise on the strength of NH Foods Ltd to take the company to greater heights. A new joint venture company under the name of NHF Manufacturing (Malaysia) Sdn Bhd has been set-up and is now actively working on its plant set-up and product development,” Lay Hong's group executive director, Yap Chor How, said in a press statement.

For this, the company has identified a piece of industrial land in Selangor Halal Hub, Pulau Indah for the site of the JV with NH Foods, and is currently working on the factory and machinery layout.

Lay Hong closed 0.5 sen or 0.51% down at 98 sen today, giving it a market capitalisation of RM596.58 million.