KUALA LUMPUR (Sept 20): Health products manufacturer Sunzen Biotech Bhd (KL:SUNZEN) is eyeing a double-digit revenue growth for the financial year ending June 30, 2025 (FY2025), driven by strong demand for its bird's nest products and loan financing services.
Sunzen executive chairman Ching Chee Pun said there is a surge in demand for bird's nest products in China. This market currently contributes 53% of the group's revenue.
Sunzen, via its subsidiary Ecolite Biotech Manufacturing Sdn Bhd, had received approval from China’s customs in October last year to export its bottled bird's nest to the country up to 2028.
As for loan financing, Ching said there is a growing number of clients seeking money lending services from the group.
“Actually, we are optimistic on this [our businesses moving forward]. I would say [our revenue] would be at least at double-digit growth,” Ching told reporters at the group’s extraordinary general meeting (EGM) on Friday.
To sell Kota Kemuning factory to inject loan financing
Ching said the group intends to dispose of its factory in Kota Kemuning to inject additional capital into the loan financing business, while reducing its reliance on bank loans.
“The money lending [business], for now, we have a lot of clients coming. Unfortunately, we have limited capital,” he said.
According to Ching, the group has completed the revaluation of the factory, which is expected to value up to RM18 million.
He, however, did not disclose a specific timeline for the sale of the factory as it is currently in the early stages.
Besides the Kota Kemuning factory, Sunzen also has two other factories located in Puchong, Selangor and Batu Pahat, Johor.
Ching said the group is on the lookout for a new plant to ramp up its bird's nest production.
“Actually now we are getting another plant, but this one is not completed yet. But we are looking for a plant to go for extra [production],” he said.
Sunzen, which has changed its financial year-end to June 30 from Dec 31, recorded a net profit of RM9.17 million on the back of a revenue of RM142.7 million in the 18 months ended June 30, 2024.
Human health products accounted for 80.45% of the revenue, while loan financing contributed 13.78%.
In April, Sunzen announced that the company has started to shut down its loss-making animal health division to cut expenses and strengthen its profit and loss statement.
Shares of Sunzen closed one sen or 3.17% higher at 32.5 sen on Friday, valuing the group at RM238.7 million.