KUALA LUMPUR (May 13): Teo Seng Capital Bhd (KL:TEOSENG) said on Monday it is buying eight parcels of land measuring 104.87 acres in Batu Pahat district in Johor for RM23.6 million.

In a filing with Bursa Malaysia, the egg producer said the land it is buying from Lim Kim Yam & Sons Sdn Bhd and Lim Thiam Hooi is located in Yong Peng, which is within a short distance from its existing farming facilities, feedmill operation and other business units.

"This acquisition is in line with Teo Seng’s expansion plan on layer farming business to build a new layer farm equipped with latest and advanced-technology poultry related facilities and biosecurity system," said Teo Seng.

The layer farming operation expansion will further enhance egg supply in both the domestic and overseas markets, it added.

The group said the acquisition of the land will not have any material effect on its earnings, net assets, share capital for the financial year ending Dec 31, 2024 (FY2024).

Shares in Teo Seng closed six sen higher or 3.28% at RM1.89 on Monday, giving the group a market capitalisation of RM567.02 million.

For FY2023, Teo Seng posted a net profit of RM155.8 million, seven times higher than the RM21.64 million it made a year earlier, as it sold more eggs at better selling prices and received subsidy from the government. Earnings per share jumped to 22.8 sen from 4.43 sen.

Revenue, meanwhile, rose 16.72% to RM760.98 million from RM651.97 million in FY2022.