To recap, Leong Hup International Bhd’s (LHI) 1Q23 core net profit rose 8.7% YoY to RM22.1m. Despite the reported earnings make up to only 10.0% of ours and consensus forecasts, we expect the recovery may take place in 2H23 given the reopening of international borders in China since January 2023 is likely to boost demand going forward. Also, the declining trend in 1H23 for the feed costs prices (soybean and maize) may provide upside potential in the earnings recovery.