PETALING JAYA: Yenher Holdings Bhd, which is en route for a listing on the Main Market of Bursa Malaysia, is expanding its business into new markets and its range of products.

       PublicInvest Research said Yenher growth will be dependent on the construction of a new Good Manufacturing Practice (GMP)-compliant manufacturing plant, expansion of the business into new markets, and new product range.

       “Yenher’s competitive strengths include a wide range of products to meet diverse customer needs, in-house manufacturing ability with a strong focus in product research and development, availability of laboratories equipped with testing equipment, extensive sales support services, and qualified and experienced key management team, ” it said in a report yesterday.

       Yenher, a manufacturer and distributor of animal health and nutrition products, is expected to raise about RM61.2mil from the issuance of 64.4 million new shares.

       About half of the proceeds have been earmarked for the construction of new manufacturing plants, 15.9% for the purchase of new machinery and equipment and 27.3% as working capital.

       PublicInvest said among the key drivers for Yenher growth includes an increase in worldwide population, increase in consumption of livestock products, greater affluence of society, a switch to non-antibiotic feed additives, and financial incentives as a result of the government’s focus on biotechnology as a growth sector.

       “Key downside risks among others are dependency on the livestock industry, an outbreak of animal diseases or any other similar epidemic, operating in a competitive environment, dependency on the supply of workers and volatility of prices and interruption in the supply of raw materials, ” it said.

       Shipping disruption and fluctuation in shipping and freight rates and adverse movements in foreign currency exchange would also affect Yenher growth, it added.

       According to Yenher, both its manufacturing plants are running at full capacity.

       The new manufacturing plant is expected to be operational in the fourth quarter of 2023 and will house all the group’s operations on one site, according to its prospectus.

       PublicInvest said over the years, Yenher has evolved from solely being a distributor to being a manufacturer and distributor of animal health and nutrition products.

       Under its manufacturing operations, Yenher manufactures premixes, complete feed, formulated products and biotech animal feed ingredients mainly for the poultry and swine subsectors, whereas its distribution segment focuses on the distribution of feed additives, vitamins, minerals, veterinary pharmaceuticals, veterinary vaccines, farm equipment, livestock reproduction products and companion animal products, that cater for the poultry, swine, ruminants, aquaculture and companion animals subsectors.