SINGAPORE (June 26): Malaysia-based poultry company, Leong Hup International Bhd (LHI) is planning to sell more ready-to-eat (RTE) food products in Singapore due to the increase in demand following higher disposable income of its population and their busy lifestyles.

During a recent media visit to LHI's 100% subsidiary in the republic, Leong Hup Singapore Ptd Ltd (LHS), the company said, it is currently in talks with major convenience stores to introduce new products in the Singapore market.

LHS chief executive officer Lau Joo Hwa said at the moment four of its RTE products are sold at 7-eleven stores in Singapore and the company are aiming to introduce several other new products within this year.

"We are also in discussions with other convenience outlets and stores (in Singapore) to grow this segment," he told reporters.

Its Singapore’s operations, which contributed about 17% of the group’s total revenue in the financial year 2018 according to him, is focusing on growing its downstream business, among others, supplying fresh chicken to food and beverages stores, manufacturing chicken sausages, and ham, marinating and semi-cooked, trading of frozen chicken, chicken parts, beef and lamb, and RTE as well as ready-to-cook.

"Currently, LHS operates four slaughtering plants and our market share of Singapore’s fresh chicken market stand at about 50%, supplying to a variety of customers including KFC, Nandos, Jollibee and Texas Chicken.

"Our factories here produce 60,000 to 70,000 fresh chickens on a daily basis (Monday to Saturday) and the number is doubled during festive seasons. We are off on Sunday," he added.

Leong Hup which recently re-listed on the Main Market of Bursa Malaysia, operates its feedmill, eggs production and livestock businesses across Malaysia, Indonesia Singapore, Vietnam and Philippines.

In its first quarter ended March 31, 2019, Leong Hup’s net profit rose 15% to RM60.58 million versus RM52.68 million a year ago, on the back of a higher sales volume and an increase in the selling price of eggs in Malaysia and broiler chicks in Indonesia.

Revenue also expanded 11.2% to RM1.51 billion from RM1.35 billion previously.

The group’s main revenue contributor comes from its Malaysian and Indonesian operations, contributing 28.9% and 33.2%, respectively.