PeterLabs bullish

PETALING JAYA: Animal feed maker PeterLabs Holdings Bhd expects revenue to jump by a fifth this year as it expands abroad.

It is also bullish about its chances overseas due to its early compliance with a new manufacturing standard that will be made compulsory by the government on food makers next year.

Executive chairman and managing director Lim Tong Seng said the company has identified a number of potential markets like Indonesia, Saudi Arabia, Bangladesh and the Philippines.

PeterLabs, which is due for an ACE Market listing on July 26, is now present in Pakistan, Nepal, Thailand and Taiwan.

"We are optimistic of being able to reach the 20 per cent revenue growth target based on the company's past performance," Lim told reporters after launching its prospectus yesterday.

PeterLabs made a profit-after-tax of RM6 million for the year to December 31 2010 on revenue of RM40.7 million. Its after-tax profit has almost tripled since 2007.

The group makes and trades animal health and nutrition products which include animal feed additives, environment maintenance products, biological and veterinary pharmaceuticals.

But 98 per cent of its business are in Malaysia.

PeterLabs products are used by livestock breeders and animal farms for large-scale production of poultry, swine, ruminant, aquaculture and companion animals.

"There is growing demand for animal feed supplement products, veterinary, animal health products and biologicals in Asia Pacific region as well as globally," Lim said.

Although the government is only expected to implement the Good Manufacturing Practice (GMP) next year, PeterLabs has complied with all of its requirements, thus giving it an early advantage.

The GMP certification would assure customers that products are manufactured in a hygienic manner and follow best practices in manufacturing.

"The GMP is to fulfill the stringent requirement imposed by countries on foreign companies before the products can be marketed there," he said.

On its listing exercise, Lim said it involves a public issue of 15 million new shares at 30 sen a piece.

In addition, an offer for sale of approximately 35.9 million shares will be allocated to identified investors.

"We hope to raise about RM4.5 million from the flotation exercise with proceeds to be used to partly repay bank loans and listing requirements," Lim said.