KUALA LUMPUR (May 29): Lay Hong Bhd posted its fourth-straight profitable quarter in the fourth financial quarter ended March 31, 2017 (4QFY17), with a net profit of RM5.59 million, compared with a net loss of RM12.56 million in 4QFY16, mainly due to higher revenue and the absence of the share-based expense.

Earnings per share stood at 0.92 sen, compared with a loss per share of 2.19 sen a year ago.

Quarterly revenue rose 6.4% to RM173.63 million in 4QFY17, from RM163.15 million in 4QFY16, on higher contribution from its integrated livestock farming segment. The segment saw higher quantity of eggs, as well as higher price of processed and frozen products sold in the current quarter under review.

As for the retail supermarket segment, revenue of RM31.17 million in 4QFY17 was almost similar to that of RM31.71 million a year ago.

For full year FY17, net profit jumped 6.7 times to RM18.16 million, from RM2.73 million in FY16, while revenue increased 4.6% to RM675.24 million, from RM645.83 million.

On prospects, Lay Hong said the recent entry of NH Foods Ltd into the group as a substantial shareholder, had marked a major step forward for the group's chicken product manufacturing business in the form of new product development and market penetration.

"The group is now reviewing its strategies and will capitalise on the strength of NH Foods to take it to greater heights. A new joint venture company under the name of NHF Manufacturing (Malaysia) Sdn Bhd has been set-up and is now actively working on its plant set-up and product development.

"The initial range of five products were launched in November 2016 and the response has been encouraging," it added, noting a piece of industrial land in Selangor Halal Hub, Pulau Indah has been identified for the set up of the plant, and that it has planned more new products.

Lay Hong shares closed 0.5 sen or 0.53% higher at 94 sen today, with 558,000 shares done, bringing it's market capitalisation to RM572.23 million.