Leong Hup International Berhad Q1 2026 Financial Results: Earnings, Revenue, Segment Performance & Outlook

Leong Hup International Berhad: Q1 2026 Results – Key Highlights and Investor Insights

Leong Hup International Berhad (LHI) has released its unaudited interim financial report for the first quarter ended 31 March 2026. The following article provides a detailed breakdown of the key results, developments, and important matters that shareholders should be aware of, including any potentially price-sensitive issues.

Financial Performance Overview

Revenue: The Group recorded revenue of RM2.26 billion, up 2.4% from RM2.21 billion in Q1 2025. This growth was driven primarily by increased sales of livestock and poultry-related products, which rose 3.5% year-on-year. Feedmill revenue saw marginal growth of 0.8%.
Profitability: Net profit for the quarter was RM141.6 million, slightly higher than RM140.7 million last year. Of this, RM115 million was attributable to shareholders of the company.
EBITDA: Group EBITDA improved by 8.2% to RM282.4 million, supported by better margins in key markets. Livestock and poultry segment EBITDA surged 35.9%, while Feedmill EBITDA declined 13.6% due to lower internal sales.
Earnings Per Share (EPS): Basic and diluted EPS both increased to 3.36 sen, up from 2.81 sen last year, reflecting improved profitability.
Balance Sheet Strength: Total assets stood at RM6.66 billion, with net assets per share rising to RM0.7712 from RM0.7570.

Segment Performance and Market Drivers

Livestock & Poultry: Revenue growth was primarily in Malaysia and Indonesia, driven by higher selling prices and sales volume for broiler day-old-chicks (DOCs) and eggs. Singapore saw modest gains, while Vietnam’s revenue declined due to adverse currency translation effects. Improved margins led to significant EBITDA growth.
Feedmill: External revenue increased in the Philippines, driven by higher prices and volume, despite currency headwinds. Indonesia and Vietnam saw lower revenue due to currency effects, despite volume and price improvements. EBITDA fell due to reduced internal sales.

Comparative Quarter Analysis

Compared to the previous quarter (Q4 2025), revenue was marginally lower by 0.5%, and profit before tax declined sharply by 39.8%. The drop in profit was primarily due to lower margins and timing of operating expenditures, especially in Vietnam and Malaysia.

Cash Flow and Capital Management

Operating cash flow was RM112.3 million for the quarter, down from RM243.5 million last year, reflecting working capital changes and higher tax payments.
Net cash used in investing activities was RM145.4 million, mainly due to significant capital expenditure (RM135.6 million for property, plant and equipment).
Net cash used in financing activities was RM33.7 million, including significant treasury share buybacks (RM30.8 million) and dividend payments (RM34.4 million).

Corporate Actions and Dividends

Treasury Shares: During Q1 2026, LHI repurchased 39.6 million shares for RM30.8 million, increasing total treasury shares to 247.1 million. This aggressive buyback could indicate management’s confidence in future prospects and may support share price.
Dividend: A second interim single-tier dividend of 1.00 sen per share was paid in January 2026, totaling RM34.4 million. No new dividend was proposed for the quarter.
Employee Share Option Scheme (ESOS): 1.57 million new shares were issued from ESOS exercises, raising RM0.9 million.

Contingent Liabilities – Material Litigation Update

Potentially Price-Sensitive:

Competition Commission Case: LHI’s subsidiary, Leong Hup Feedmill Malaysia Sdn. Bhd. (LFM), is embroiled in a high-profile legal dispute with the Malaysia Competition Commission (MyCC) over an alleged price-fixing infringement. The financial penalty imposed is RM157.47 million. Multiple appeals and judicial reviews are ongoing.
- As of March 2026, the High Court has granted LFM an interim stay on the penalty and enforcement pending final determination of the judicial review.
- The latest developments include LFM’s ongoing judicial review against the Competition Appeal Tribunal’s (CAT) affirmation of the penalty.
- The next hearing for the interim stay is scheduled for August 2026, with case management in June 2026.
- This legal case is significant and may impact LHI’s financials and share price depending on the outcome. Investors should monitor future announcements closely.

Prospects and Outlook

The Group remains cautiously optimistic for 2026, expecting to deliver satisfactory performance despite global headwinds such as trade tensions and supply chain disruptions.
ASEAN markets remain resilient, with steady domestic demand and supportive policies. Management is focused on prudent cost and cash flow management.
Risks include prolonged geopolitical tensions and the outcome of the legal case described above.

Other Notable Items

No material events have occurred after the quarter-end that would impact the Group.
No new corporate proposals or material litigation other than the Competition Commission case.
Capital commitments of RM102.8 million have been approved and contracted for property, plant, and equipment.
Segmental and related party transactions remain consistent with prior periods.

Conclusion – Investor Takeaways

LHI’s Q1 2026 results show resilient revenue and profitability growth, strong balance sheet, and continued capital investment.
The aggressive share buyback and dividend payout demonstrate confidence and commitment to shareholder value.
The ongoing legal dispute with MyCC is a significant risk and remains unresolved, with a material financial penalty at stake. This is likely to be price-sensitive and should be monitored closely by investors.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own research and consult with a licensed financial advisor before making investment decisions. The information is based on the interim financial report for Q1 2026 and may be subject to change pending future developments, especially regarding ongoing legal proceedings.

Leong Hup International Berhad: Keputusan Suku Pertama 2026 – Sorotan Utama dan Maklumat untuk Pelabur

Leong Hup International Berhad (LHI) telah mengeluarkan laporan kewangan suku pertama yang tidak diaudit untuk tempoh berakhir 31 Mac 2026. Berikut adalah analisis terperinci mengenai keputusan utama, perkembangan penting, dan perkara-perkara yang perlu diketahui oleh pemegang saham, termasuk isu-isu sensitif yang berpotensi mempengaruhi harga saham.

Prestasi Kewangan Utama

Hasil: Kumpulan mencatatkan hasil sebanyak RM2.26 bilion, meningkat 2.4% berbanding RM2.21 bilion pada suku yang sama tahun lalu. Pertumbuhan didorong oleh kenaikan jualan produk ternakan dan ayam, naik 3.5% tahun ke tahun. Hasil Feedmill meningkat sedikit, 0.8%.
Keuntungan: Keuntungan bersih suku ini adalah RM141.6 juta, sedikit lebih tinggi daripada RM140.7 juta tahun lalu. RM115 juta daripadanya adalah milik pemegang saham syarikat.
EBITDA: EBITDA kumpulan meningkat 8.2% ke RM282.4 juta, disokong oleh margin yang lebih baik di pasaran utama. EBITDA segmen ternakan dan ayam melonjak 35.9%, manakala Feedmill menurun 13.6%.
Pendapatan Setiap Saham (EPS): EPS asas dan dilusi kedua-duanya naik ke 3.36 sen, berbanding 2.81 sen tahun lalu.
Kekuatan Kunci Kira-kira: Jumlah aset sebanyak RM6.66 bilion, dengan aset bersih setiap saham naik ke RM0.7712 daripada RM0.7570.

Prestasi Segmen dan Pemacu Pasaran

Ternakan & Ayam: Pertumbuhan hasil didorong oleh Malaysia dan Indonesia, dengan harga jualan dan volum DOC broiler dan telur yang lebih tinggi. Singapura mencatatkan peningkatan sederhana, manakala Vietnam menurun akibat kesan pertukaran mata wang. Margin yang baik menyebabkan pertumbuhan EBITDA yang signifikan.
Feedmill: Hasil luar meningkat di Filipina, walaupun terdapat tekanan mata wang. Indonesia dan Vietnam menurun akibat pertukaran mata wang. EBITDA menurun berikutan jualan dalaman yang rendah.

Analisis Perbandingan Suku

Berbanding suku sebelumnya (Q4 2025), hasil sedikit menurun 0.5% dan keuntungan sebelum cukai merosot 39.8%, terutamanya disebabkan oleh margin yang lebih rendah dan perbelanjaan operasi di Vietnam dan Malaysia.

Aliran Tunai dan Pengurusan Modal

Aliran tunai operasi adalah RM112.3 juta, turun daripada RM243.5 juta tahun lalu, mencerminkan perubahan modal kerja dan pembayaran cukai yang lebih tinggi.
Aliran tunai pelaburan negatif RM145.4 juta, terutamanya akibat perbelanjaan modal besar (RM135.6 juta untuk aset tetap).
Aliran tunai pembiayaan negatif RM33.7 juta, termasuk pembelian semula saham (RM30.8 juta) dan pembayaran dividen (RM34.4 juta).

Tindakan Korporat dan Dividen

Saham Perbendaharaan: Sepanjang Q1 2026, LHI membeli semula 39.6 juta saham dengan nilai RM30.8 juta, meningkatkan jumlah saham perbendaharaan kepada 247.1 juta.
Dividen: Dividen interim kedua 1.00 sen sesaham dibayar pada Januari 2026, berjumlah RM34.4 juta. Tiada dividen baharu dicadangkan untuk suku ini.
Skim Opsyen Saham Pekerja (ESOS): 1.57 juta saham baharu diterbitkan daripada ESOS, mengumpul RM0.9 juta.

Liabiliti Kontinjen – Kemas Kini Litigasi Material

Potensi Sensitif Harga:

Kes Suruhanjaya Persaingan: Anak syarikat LHI, Leong Hup Feedmill Malaysia Sdn. Bhd. (LFM), terlibat dalam pertikaian undang-undang utama dengan Suruhanjaya Persaingan Malaysia (MyCC) atas dakwaan pelanggaran penetapan harga. Penalti kewangan yang dikenakan adalah RM157.47 juta. Pelbagai rayuan dan semakan kehakiman sedang berlangsung.
- Setakat Mac 2026, Mahkamah Tinggi telah memberikan LFM stay interim ke atas penalti dan penguatkuasaan sementara keputusan akhir semakan kehakiman.
- Perkembangan terbaru ialah semakan kehakiman LFM terhadap keputusan Tribunal Rayuan Persaingan (CAT) yang mengekalkan penalti.
- Perbicaraan interim stay dijadualkan Ogos 2026 dan pengurusan kes pada Jun 2026.
- Kes undang-undang ini adalah penting dan boleh menjejaskan kewangan serta harga saham LHI bergantung kepada keputusan. Pelabur perlu memantau pengumuman lanjut.

Prospek dan Jangkaan

Kumpulan kekal optimis berhati-hati untuk 2026 dan menjangka prestasi memuaskan walaupun cabaran global.
Pasaran ASEAN kekal kukuh, dengan permintaan domestik yang stabil dan dasar sokongan. Pengurusan memberi tumpuan kepada kawalan kos dan tunai.
Risiko utama ialah ketegangan geopolitik berpanjangan dan keputusan kes undang-undang di atas.

Perkara Penting Lain

Tiada peristiwa material berlaku selepas suku yang boleh menjejaskan kumpulan.
Tiada cadangan korporat atau litigasi material lain selain kes MyCC.
Komitmen modal sebanyak RM102.8 juta telah diluluskan dan dikontrak untuk aset tetap.
Transaksi segmen dan pihak berkaitan konsisten seperti sebelum ini.

Kesimpulan – Pengambilan Pelabur

Keputusan Q1 2026 LHI menunjukkan pertumbuhan hasil dan keuntungan yang kukuh, kunci kira-kira yang kuat, dan pelaburan modal berterusan.
Pembelian semula saham dan pembayaran dividen menunjukkan keyakinan dan komitmen terhadap nilai pemegang saham.
Pertikaian undang-undang MyCC adalah risiko utama dan belum selesai, dengan penalti kewangan yang besar. Ini berpotensi sensitif harga dan perlu dipantau pelabur.

Penafian: Artikel ini adalah untuk tujuan maklumat sahaja dan bukan nasihat pelaburan. Pelabur perlu melakukan penyelidikan sendiri dan berunding dengan penasihat kewangan berlesen sebelum membuat keputusan pelaburan. Maklumat adalah berdasarkan laporan interim suku pertama 2026 dan boleh berubah bergantung kepada perkembangan masa depan, terutamanya berkaitan kes undang-undang yang sedang berlangsung.