Guan Huat Seng eyes European market after ACE Market listing
The group also aims to target younger consumers with ready-to-serve frozen products and grow its presence in the European market
Frozen food distributor Guan Huat Seng Holdings Bhd plans to expand its retail outlets in the Klang Valley and Johor following its ACE Market listing.
The group also aims to target younger consumers with ready-to-serve frozen products and grow its presence in the European market.
The initial public offering (IPO) price was set at 25 sen apiece. The company is scheduled to be listed on the ACE Market on Jan 22.
Speaking to reporters on Monday after the prospectus launch, managing director Yeo Tien Ee said the group only currently operates one retail outlet in Melaka.
The group plans to open two outlets in the Klang Valley in the second half of 2026 and a retail outlet in Johor in 2027 to boost brand awareness and support existing customers.
Besides the opening of the new retail outlets, the group is also planning a new integrated complex in Melaka to be partially funded by its IPO proceeds. It is also opening a new factory in Krubong to manufacture flavouring products.
The complex and new Krubong facility are slated for completion by the third and fourth quarters of 2028, according to the prospectus.
The group is also looking to capture younger consumers via new frozen convenience products that are ready-to-serve, as well as shifting some business presence towards European consumers although further details were not disclosed.
We will be extending our products from sauces, spices, seasoning, condiments, and then the new targeted market that we see with growth potential will be on the Europe side, said Yeo.
Guan Huat Seng’s main customers are in Hong Kong, Australia, the UK, the US, the Philippines, South Korea and China. Yeo noted that the company’s current market share in Hong Kong is about 4% while its market share in Malaysia is below 1%.
For the financial year ended Dec 31, 2024, the group made a net profit of RM6.74 million ($1.66 million) on the back of RM84.82 million ($20.83 million) in revenue.
The revenue contribution from the domestic market was RM74.09 million ($18.19 million) or 87.35%, while the international market contributed RM10.73 million ($2.63 million) or 12.65%.