September 13, 2019
Leong Hup International (LHI) suffered a 76% plunge in Q2 net profit amidst mixed reviews due to poultry oversupply in Indonesia. The Indonesian government recently instructed 10 million eggs to be destroyed in a bid to support falling broiler prices. InterPacific Securities’ expects LHI to take a hit on its profitability but Malacca Securities’ expects prices to recover early 2020 as poultry players cull aged chickens to re-balance the demand-supply condition. Another analyst said that LHI’s main revenue contributor in Indonesia is its feedmill business and the oversupply will not be an issue.