PETALING JAYA: Leong Hup International Bhd
earnings recovery momentum is expected to be sustained in the fourth quarter of this year (4Q22), but margin compression will persist in the near term with raw material costs for livestock and poultry still high.
The group’s vertical integration of poultry, eggs and livestock feed, and geographic diversification across countries could partially mitigate against any downside.
MIDF Research said government subsidies and grants for livestock farming in Malaysia could potentially help sustain Leong Hup’s margin by reducing the impact of price controls on chicken and eggs.
...