MAG Holdings Berhad (KLSE: MAG, 0095) has cemented itself as Malaysia’s largest integrated prawn aquaculture company, holding an estimated 25% market share.

With 384 cultivation ponds and two processing plants, MAG operates a vertically integrated business model that spans from breeding to processing and distribution.

Its flagship species, the Vannamei prawn, enjoys strong demand both locally and internationally, with exports accounting for 60% of total revenue, primarily to South Korea, Taiwan, Australia, and China.

MAG’s expansion strategy is well underway, with the recent addition of 32 cultivation ponds in Tawau, Sabah, bringing total capacity to 7,000 metric tonnes per year.

To drive efficiency, the company is adopting smart farming solutions, such as automated feeding systems and AI-powered monitoring, which have already boosted survival rates from 60-70% to 80%. These advancements are expected to quadruple productivity, positioning MAG to capitalise on the global seafood market’s projected 5.5% annual growth.

Financially, MAG has demonstrated consistent revenue growth, with FY2024 revenue surging 51% to RM305.1 million. Despite cost fluctuations, the company maintains a strong balance sheet, with a net cash position of RM23.6 million and a focus on sustainable operations.

RHB Investment Bank has set a target price of RM0.30, reflecting MAG’s growth potential, market leadership, and ongoing operational enhancements.

With increasing demand for high-quality farmed seafood and a strategic push into new markets, MAG is well-positioned to scale up and strengthen its presence in the global aquaculture industry.