KUALA LUMPUR (May 31): Animal health and nutrition products manufacturer Yenher Holdings Bhd (KL:YENHER) on Friday announced flattish first quarter earnings and a bonus issue of free warrants.

The group posted a net profit of RM5.05 million for the three months ended March 31, 2024 (1QFY2024), up a marginal 0.66%, compared to RM5.02 million reported a year earlier. Earnings per share rose to 1.68 sen from 1.67 sen.

Quarterly revenue fell 6.58% to RM73.24 million from RM78.4 million in 1QFY2023, caused mainly by an outbreak of animal diseases in Malaysia, the group said in a bourse filing.

No dividend was declared for the quarter.  

Moving forward, Yenher said the group is well-positioned to capitalise on improving conditions in the livestock sector.

“Our strategic priorities for 2024 remain focused on innovation, sustainability, market expansion and operational excellence, with a strong emphasis on meeting the evolving needs of our customers and delivering long-term value to our shareholders,” it added in a statement.

Meanwhile, the construction of a new good manufacturing practice (GMP)-compliant manufacturing plant is estimated to be completed by June 2025, said Yenher.

Separately, the group proposed a bonus issue of one warrant for every five existing shares in a bid to reward its shareholders, and strengthen its financial position and capital base.

As at May 10, Yenher had an issued share capital of RM177.43 million comprising 300 million shares in issue. As such, up to 60 million warrants may be issued under the exercise.

The warrants will be issued at no cost to entitled shareholders, while the board has fixed the warrants' exercise price at RM1.10 each.

Assuming the full exercise of warrants, Yenher is expected to raise gross proceeds of up to RM66 million. These proceeds are expected to fund the group's working capital.  

Yenher’s share price closed up one sen or 1% to 97 sen, bringing the group a market capitalisation of RM291 million.