$RHONEMA / 5278 (RHONE MA HOLDINGS BERHAD) Secures FAMI-QS certifications as well as their NPRA-GMP Cert for their Nilai Plant

For those following the stock, this is something to be happy about.

https://cutt.ly/qemiYMxk

After some delays, Rhone Ma's Nilai plant has finally gotten their NPRA-GMP certification. This now allows them to ramp up the plant to produce pharmaceutical products including their own brand products. Previously, the plant in PJ had been running at max production capacity and this new plant has been in the works since 2019. It was actually completed around early 2023, but because the NPRA-GMP certifications are so stringent, the plant was only running at about 30-40% capacity producing feed additives all the while. It's only now that they finally managed to secure the certification and thus can produce pharmaceutical products in both their Nilai and PJ plants.

Together with their NPRA-GMP certification, Rhone Ma has also secured the FAMI-QS certification for both their plants, for Feed Additives and Pre-Mixtures Quality System to ensure proper feed quality is produced, including proper risk management and hygiene measures to ensure feed safety.

FAMI-QS is an international certification recognized around the world, and its member companies include big names like BASF, Adisseo, Evonik Industries, Archer Daniels Midlands and more. In Malaysia, there are only 5 companies that have the FAMI-QS certs; of which Rhone Ma owns 2 of them.

I am personally a big stickler for certifications and standards, especially when dealing with pharmaceutical and industrial agriculture matters. For those with some experience dealing in this industry, you might be aware of a lot of malpractice going on by unscrupulous companies, especially in the developing part of the world. Certifications are there to prevent such frauds, and to ensure proper good quality products go into the farm animals and ultimately ourselves.

What tangible benefits can these certifications get? Well, I'm not able to quantify them, but qualitatively, I would expect it to make it easier to export their products. Also, their products would likely be able to justify some premiums as opposed to products without the same kind of certifications.

At the same time, they would more easily be able to service the international organizations or find a foot into tenders and projects.

Nevertheless, we shall see how Rhone Ma will perform after this, after rather slow growth results for the past few years. At the very least, I would be watching out for them to ramp up the production at their new Nilai plant and how much they can increase exports.

I have been covering Rhone Ma for a long time, and you may scroll back on the $RHONEMA / 5278 (RHONE MA HOLDINGS BERHAD) page here on Stockbit for the other posts and discussions.