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PETALING JAYA: Yenher Holdings Bhd expects to continue the double-digit growth trend in revenue this year, with the group’s operations mostly unaffected by the movement restrictions.

The Penang-based group is categorised as essential services, as it manufactures and distributes animal health and nutrition products, as well as provides value-added diagnostic and material analyses.

Both Yenher’s manufacturing plants have been running at full capacity in recent months.

“The impact of the movement restrictions on our output is minimal although we can only operate with 60% workforce and more recently, an 80% workforce capacity, in accordance with the lockdown’s standard operating procedures,” group managing director Cheng Mooh Tat told StarBiz.

Regarding its overseas expansion plans, Cheng said the group had recently inked a three-year distribution deal worth US$200,000 (RM829,300) annually with a customer in Taiwan for livestock biotech products developed in-house.

“Our customer approached us to become our distributor in Taiwan, after his pigs became renowned for quality at auction markets. He is confident about the results that our products deliver and this will help to improve our brand presence in Taiwan,” he said.

Cheng added that Yenher is also in talks with companies in Indonesia and China for joint ventures and collaborations, and hopes to announce “positive news in the fourth quarter of 2021 or first quarter of 2022.”FILE PHOTO: Chickens sit in their pen at Zbigniew Sochodzki poultry farm in the village of Olszewo, central Poland January 29, 2013. Picture taken January 29, 2013. REUTERS/Peter Andrews (POLAND - Tags: ANIMALS BUSINESS AGRICULTURE POLITICS)/File Photo

For its financial year ended Dec 31, 2020 (FY20), about 90% of the group’s revenue was from Malaysia and the balance 10% from overseas markets.

Indonesia was the largest export sales contributor (4.3% of revenue), followed by Brunei (3.45%), with the balance from Hong Kong, Belgium, Pakistan, South Korea, Nigeria, Thailand, Vietnam, Singapore and Taiwan.

Meanwhile, since the group’s listing on July 15 on the Main Market, its share price has been trading below its initial public offering price (IPO) of 95 sen. Yenher’s stock closed at 92 sen last Friday.

Cheng said there may be a misperception among investors that the group is an animal feed miller.

“We supply premixes and formulated products to the animal feed millers, who comprise almost 80% of our customers,” he explained, adding that premixes are a mixture of vitamins, minerals, amino acid, anti-fungus, anti-oxidant, pro and pre-biotic and other nutritional additives.


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