KUALA LUMPUR (Nov 13): Teo Seng Capital Bhd (KL:TEOSENG) posted a 32.4% jump in its third quarter net profit, lifted by strong gains in its key poultry farming business, as well as its segment on investments and trading of poultry-related products.

Net profit for its July-September quarter (3QFY2024) climbed to RM58.1 million from RM43.8 million a year ago.

Pre-tax profit from poultry farming jumped 27.8% to RM50.2 million from RM39.3 million, lifted by enhanced productivity, cost efficiencies and stable feed costs, the group said in a statement. Its investment and trading's pre-tax profit climbed 154.9% to RM3.3 million from RM1.3 million, driven by higher demand for animal health products.

The stronger earnings come despite quarterly revenue dipping 4.84% to RM190.31 million from RM200 million.

The group declared a third interim dividend of four sen per share, payable on Dec 18, 2024, raising the group's year-to-date dividend payout to 9.5 sen per share, versus two sen in the corresponding period last year.

For the nine months ended Sept 30, 2024 (9MFY2024), Teo Seng's net profit rose 33.23% to RM118.46 million from RM88.92 million in 9MFY2023, as revenue grew to RM565.35 million from RM561.13 million.

Teo Seng said it sees strong prospects for continued capacity expansion and market growth, given the stable demand for eggs as a primary protein source and increasing egg consumption in Malaysia. 

Hence, the board remains cautiously optimistic about the group’s future business performance. “We are actively working on expanding production capacity to meet rising demand, with several initiatives in the pipeline,” it added.

Teo Seng's share price closed six sen or 2.4% higher at RM2.53 on Thursday, bringing the group a market capitalisation of RM759 million. Year to date, the stock has climbed 58% from RM1.60.