Teo Seng Capital Bhd is one of the largest integrated layer farmer and it has been getting investors’ interest. This is judging from the impressive share price performance.

In the past year, the counter rose 96% to close at RM1.98 on July 18. It touched a 52-high of RM2.46 in Feb from a low of 99 sen in August last year but lost some ground after profit taking activities.

Good news is that Teo Seng has been seeing a climb and should test resistance levels of RM1.97 and RM2.20 next. The poultry farming segment is the company’s main profit driver.

In 2023, the segment posted RM660 million in revenue and RM152.9 million in profit before tax, driven by higher prices and increased egg sales.

The good performance continued into the first quarter as its net profit rose 42.11% to RM34 million from RM19.68 million a year ago, on higher egg sales, improved raw material costs, and government subsidies that eased operational expenses.

Earnings per share for the quarter ended March 31, 2024 increased to 11.59 sen from 6.7 sen previously. Quarterly revenue rose 3.6% to RM190.1 million from RM183.4 million a year ago mainly driven by improved revenue from the poultry farming segment.

It will continue to focus on its core strength, which is integrated layer farming, as well as investing in and trading poultry-related products.

"We believe the long-term outlook of the poultry industry remains intact, driven by eggs being one of the most widely available sources of protein and the country's growing population," it added.

It is buying eight parcels of land measuring 104.87 acres in Batu Pahat district in Johor for RM23.6 million.

The egg producer said the land it is buying is located in Yong Peng, which is within a short distance from its existing farming facilities, feedmill operation and other business units.

This acquisition is in line with Teo Seng’s expansion plan on layer farming business to build a new layer farm equipped with latest and advanced-technology poultry related facilities and biosecurity system.

The layer farming operation expansion will further enhance egg supply in both the domestic and overseas markets.

Signs are pointing for Teo Seng to climb even further as it has got strong fundamentals especially on the back of its expansion plan to cater to the increased demand.