It’s no chicken feet for CAB 7174 CAB CAKARAN CORPORATION BERHAD

 It’s no chicken feet for  CAB 7174 CAB CAKARAN CORPORATION BERHAD



CAB Cakaran Corp Bhd has been enjoying a good run in its share price, up 15.7% year to date to close at 56 sen on Mar 6.


There is a high possibility that the counter will surpass its 52-week high of 59 sen.


The positive sentiments could be buoyed by higher demand for its chicken and food products.


This is especially so in light ot the upcoming festive season whereby the white meat will be much sought after.


Chicken is so high in demand  until the government had to impose a temporary bank on chicken exports to Singapore.


Despite the challenging operating environment, CAB managed to chalked in a great quarter.


CAB’s net profit more than doubled to RM41.9 million in the first quarter ended Dec 31, 2022 (1QFY2023), from RM18.2 million a year ago.


 Its revenue rose d12.8% to RM557.3 million in 1QFY2023 versus  RM494.21 million a year ago, due to higher sales achieved by most of its divisions, especially the integrated poultry division.


It said the integrated poultry division recorded a 14.37% increase in its revenue as compared to a year before due to the higher average selling price of feed, processed chicken and most of the further processed food products.


CAB is fast to identify its growth direction.


For instance, it has ventured into the premium downstream food segment to help the group cushion the fluctuations of its profit margin and boost its financial performance.


Farm’s Best Food Industries Sdn Bhd, its 53.04%-owned subsidiary, which offers a higher margin in order to build a stronger market presence in Malaysia and to grow its export markets.


CAB believes that demand for chicken meat will remain high as it is the cheapest source of meat protein. It also added that the per capita consumption of chicken meat in Malaysia is one of the world's highest, at around 50kg.


Hence, the group said the strong demand will keep prices of broilers high over the next quarter as the supply situation remains unstable.


Surely, with so much going on for CAB, investors may not want to miss this boat!


#CAB

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