MARKET DEVELOPMENT
RHB Research Maintains Buy on QL Resources
RHB Research Maintains Buy on QL Resources
22/11/2014 (The Star) - RHB Research has maintained its Buy call on QL Resources with a target price of RM3.90 based on 22 times CY15 EPS, it said in a note on Friday.
"We are positive on QL’s strong growth prospects, as webelieve demand for its products will remain robust with minimal impactfrom softer consumer spending," it said.
QL's 1HFY15 revenue grew 10.6% on-year on stronger sales across the board.
Higher sales wererecorded for palm oil activities (POA) , marine product manufacturing (MPM), and integrated livestock farming (ILF).
Its POA saw better growth due to an increase in freshfruit bunches processed and better CPO prices.
MPM’s revenuewas boosted by higher sales of surimi-based products and new contributions from shrimp farming, while ILF’s sales improved on theback of increased trading of feed raw materials.
"We deem the results in line, as 1H typically contributes 44%-46% of its full-year earnings," it noted.
"We are positive on QL’s strong growth prospects, as webelieve demand for its products will remain robust with minimal impactfrom softer consumer spending," it said.
QL's 1HFY15 revenue grew 10.6% on-year on stronger sales across the board.
Higher sales wererecorded for palm oil activities (POA) , marine product manufacturing (MPM), and integrated livestock farming (ILF).
Its POA saw better growth due to an increase in freshfruit bunches processed and better CPO prices.
MPM’s revenuewas boosted by higher sales of surimi-based products and new contributions from shrimp farming, while ILF’s sales improved on theback of increased trading of feed raw materials.
"We deem the results in line, as 1H typically contributes 44%-46% of its full-year earnings," it noted.