KUALA LUMPUR: SBH Marine Holdings Bhd, poised for a robust return, anticipates a full revival of its aquaculture shrimp farming operations this year, foreseeing a return to profitability in this sector.
The company also holds a positive outlook on its future prospects on the anticipated expansion of the frozen seafood market.
Managing director Tan Boo Nam expressed confidence, citing various factors, including the decline in wild fisheries, escalating consumer health awareness, a burgeoning global population, and increasing consumer affluence.
Tan highlighted encouraging indicators in the group's frozen seafood processing and sales division, particularly noting heightened demand in Asian markets, which significantly contributes to their revenue.
"This will bode well with our expansion plans and our upcoming IPO, whereby we hope to deliver value to our shareholders in the years to come," he said in a statement.
Scheduled for listing on April 8, SBH Marine specialises in processing frozen seafood, predominantly focusing on shrimps and cephalopods, with exports mainly directed towards Europe, the Middle East, and Asia.
Presently, the group operates a seafood processing plant alongside two shrimp farms in Kuala Kurau and Selinsing in Perak.
The IPO is expected to generate gross proceeds of RM39.6 million, primarily allocated towards business expansion plans. About RM16 million will be invested to enhance the aquaculture shrimp farm in Selinsing, with an additional RM6.5 million earmarked for the construction of a second seafood processing plant in Kuala Krau.
Furthermore, RM6.1 million will be allocated for the acquisition of new machinery, equipment, and motor vehicles. The remaining funds will be directed towards working capital and listing expenses.
SBH Marine reported its unaudited financial performance for the fourth quarter ending Dec 31, 2023 (FY23), with revenues reaching RM47.1 million and earnings amounting to RM4.1 million.
These figures contribute to a total revenue of RM191.3 million and earnings of RM12.5 million for FY23. Despite achieving a revenue level akin to FY22, SBH Marine noted a higher gross profit of RM32.1 million for FY23 compared to RM26.6 million for FY22.
SBH Marine said despite the increased gross profit, FY23 net profit fell slightly to RM12.5 million. It attributed this to a share of losses incurred from its joint venture, SBH Perak Agro Aquaculture Sdn Bhd. The losses arose from pond maintenance activities conducted on one of its shrimp farms during the fiscal year, leading to disruptions in shrimp cultivation and farming activities.
The group also disclosed IPO-related expenses totaling RM520,000 within the FY23 results.
