KUALA LUMPUR (July 21): ACE Market-bound bird’s nest processing company MYMBN Bhd, which is set to float its shares on Bursa Malaysia next Tuesday (July 25), posted a net profit of RM1.74 million in the second quarter ended June 30, 2023 (2QFY2023).
For the first six months of FY2023 (1HFY2023), MYMBN reported a net profit of RM2.96 million.
The group generated revenue of RM23.12 million in 2QFY2023, bringing its turnover in 1HFY2023 to RM40.74 million.
No comparative figures for the preceding corresponding quarter are available, as this is the first interim financial report on the consolidated results announced by the company in compliance with the listing requirements.
MYMBN is principally involved in the processing and sale of edible bird’s nests (EBN), specifically raw unclean edible bird’s nests.
Revenue from sales to customers in China contributed the highest at RM19.2 million or 83.05% to the group’s turnover in 2QFY2023, followed by Vietnam at RM3.91 million (16.92%).
In 1HFY2023, sales in China contributed RM36.77 million (90.25%) to the group’s topline, followed by RM3.91 million (9.6%) from Vietnam.
MYMBN chief executive officer Lavernt Chen Vun Wo observed that after China lifted its Covid-19 restrictions in December 2022, the group witnessed a gradual revival in the demand for its raw unclean edible bird’s nests (RUCEBN) products from Chinese customers.
“Additionally, the encouraging response to date from Vietnam signifies the promising prospects ahead for the market as we gear to progressively diversify our reliance on the China market which is in line with our IPO (initial public offering)’s future initiatives.
“Looking ahead, even as we pursue growth and unlock greater value for our stakeholders, we will remain steadfast in demonstrating improvement in the coming quarters,” he said.
MYMBN is expected to raise RM20.58 million from its IPO via the issuance of 98 million shares at 21 sen apiece.
The bulk of the proceeds from the IPO, at RM8.93 million, has been earmarked for business expansion, which includes the purchase of a new facility to expand its processing capacity, for which RM2.8 million has been allocated.
Apex Securities has valued MYMBN at a fair value of 30 sen. The research house had on July 10 said it is optimistic about the recovery of China’s demand and MYMBN being one of the market leaders of exporting RUCEBN.
MYMBN’s RUCEBN products are generally sold to manufacturers of bird’s nest-related products, such as food and beverages, processors of RUCEBN and traders of EBN products.
Mercury Securities Sdn Bhd — the sole placement agent, principal adviser, sponsor and sole underwriter for the IPO — had also confirmed that the 60.02 million new shares made available for application by way of private placement have been fully placed out to selected investors.
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