Poultry stocks are in a sweet spot as feed costs cool in Malaysia

Published 2024년 8월 7일

Tridge summary

Poultry stocks in Malaysia have seen a surge, with some reaching multi-year highs due to lower input costs for chicken feed. The prices of soybean meal and corn have fallen to their lowest levels since late 2020, leading to expanded margins for poultry players. Companies like CCK Consolidated Holdings Bhd and QL Resources Bhd have benefited from this trend, as have smaller peers like Lay Hong Bhd and CAB Cakaran Corporation Bhd. The optimistic outlook is expected to persist as poultry companies like Leong Hup International Bhd and Teo Seng Capital Bhd continue to see improved earnings. The government's decision to lower chicken egg prices by three sen each in June has further supported the sector.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

This article first appeared in The Edge Malaysia Weekly on July 29, 2024 - August 4, 2024 POULTRY stocks have been trading higher, with some reaching multi-year highs in recent weeks. This rally could continue as earnings are expected to improve, analysts say. The better outlook could be due to lower input costs for chicken feed as the prices of soybean meal and corn have fallen to their lowest levels since late 2020, thus contributing to the margin expansion of poultry players. “I think poultry stocks still have legs, being in the consumer segment,” says Loui Low Ley Yee, head of research at Malacca Securities Sdn Bhd. “Hence, there should be more upside to earnings going forward.” CCK Consolidated Holdings Bhd (KL:CCK) and QL Resources Bhd (KL:QL) have seen multiple year-highs in recent weeks, while Lay Hong Bhd (KL:LAYHONG), CAB Cakaran Corporation Bhd (KL:CAB), Leong Hup International Bhd (KL:LHI) and Teo Seng Capital Bhd (KL:TEOSENG) hit theirs earlier this year, before ...

Source: Theedgemarkets