Teo Seng Capital posts RM3.9m net profit for 2Q

by S BIRRUNTHA / pic source teoseng.com.my

TEO Seng Capital Bhd posted a net profit of RM3.93 million for the second quarter ended June 30, 2022 (2Q22), against a net loss of RM10.53 million a year ago, on improved contribution from its poultry farming segment.

Revenue for the quarter rose 33.36% to RM157.39 million from RM118.02 million for the same period last year, according to its filing to Bursa Malaysia yesterday.

As a result, the poultry group registered an earnings per share of 1.34 sen for the period against a loss per share of 3.58 sen previously.

Teo Seng Capital said its poultry farming segment reported a higher revenue of RM256.2 million for the quarter, representing an increase of 31.7% resulting from the continued improved selling price of eggs.

“Nevertheless, the continued higher feed cost with the cushion of egg subsidy from the government had resulted in the segment to record a pre-tax loss of RM56,000 for the period under review,” it said.

Meanwhile, the group’s investment and trading segment recorded an increase in revenue by RM9.5 million and a sustainable pre-tax profit of RM6.3 million, representing a decline of 34.5% in pre-tax profit due to the gain on disposal of right-of-use asset in the corresponding quarter of the preceding year.

On a quarterly basis, Teo Seng Capital’s net profit fell 5.48% from RM4.16 million, despite revenue rising by 6.8% from RM147.36 in 1Q22.

“Despite the egg subsidy provided by the government and better contribution from the segment of animal health products, the group still recorded a slight decrease in pre-tax profit by RM1.3 million, representing a decrease of 34.1%, as a consequence of the continued higher production cost in the current quarter,” it noted.

For the cumulative first half ended June 30, 2022 (1H22), Teo Seng Capital recorded a net profit of RM8.09 million against a net loss of RM11.33 million in the previous year, while revenue grew 30.53% to RM304.75 million from RM233.47 million in financial year 2021.

On prospects, the group said 2H22 would remain challenging in terms of financial performance, in view of the business resumption with uncertain market conditions.

Teo Seng Capital’s share price closed half a sen or 0.63% lower at 78 sen yesterday, giving it a market capitalisation of RM235.51 million.