QL (7084)

chicken, oil palm~solid solid

source kenanga

QL: Its integrated livestock farming business is suffering from the high prices of raw materials such as maize and soybean which are the ingredients for the feed meal for chickens and chicks.

On top of that, the age profile of the group’s oil palm plantation in East Kalimantan Indonesia is still relatively young. It will take several more years for the age profile to mature to give QL good yield.

It is now growing from a high base after couple of years prior to FY2012.

QL has been very cautious in growing its businesses. It has set up a solid foundation for the businesses to grow. However most of the growth factors will only be recognized from FY2014 onwards.

Among the growth factors that will contribute to QL’s higher net profit growth in FY2014 is the maturing oil palm. QL has 15000ha of oil palm plantation in East Kalimantan but only 4000ha are considered mature at the moment.

By 2015, the contribution from oil palm plantation will stand at around 20% of QL’s top line provided QL’s integrated livestock and marine product manufacturing businesses continue to expand at their current pace in the next two to three years.

The group has invested some more than rm300 million in its farms and facilities in Vietnam and Indonesia .

FA- QL RESOURCES BERHAD 7084

QL RESOURCES BERHAD
16A, Jalan Astaka U8/83
Bukit Jelutong,
40150 Shah Alam, Selangor

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Listing Date: 30.03.2000
Par Value: 0.50

Market: MAIN
Sector: CONSUMER
Major Industry: FOOD PRODUCTS

QL RESOURCES BERHAD is a Malaysia-based company engaged in investment holding and provision of management services. The Company operates in three segments: marine products manufacturing segment, which is engaged in deep sea fishing, manufacture and sale of fishmeal, surimi and surimi-based products; palm oil activities segment, which is engaged in crude palm oil milling and oil palm cultivations, and integrated livestock farming segment, which is engaged in the distribution of animal feed raw materials, food related products and livestock farming. Its subsidiaries include QL Feedingstuffs Sdn. Bhd, QL Agrofood Sdn. Bhd., QL Agrobio Sdn. Bhd., QL Feedmills Sdn. Bhd., QL Poultry Farms Sdn. Bhd., QL Realty Sdn. Bhd., Pacific Vet Group (M) Sdn. Bhd. and Maxincome Resources Sdn. Bhd.

QL 7084 10th AUG 2012

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note: start of trend reversal, or it will just be trailling around the mid area

QL

It will allocate RM200mil as capital expenditure (capex) for the current FY ending March 31, 2013 to fuel domestic and regional expansion.

The capex was important to place the company on track to achieve a double-digit growth in revenue and profit for the current year. The capex is a continuous move and will be more on marine products manufacturing and integrated livestock farming.

The company's regional business is expected to contribute at least 10 per cent to the group's earnings for the current financial year.

More than RM300mil has been invested into Indonesia and Vietnam to develop the production facilities and open new markets in the fisheries, poultry and palm, and the regional investments has produce results.

In Indonesia, much potential exists in the country's integrated poultry market.

QL currently holds rm110 million in cash against rm599 million in borrowings and recorded a net operating cash flow of rm27.37 million in the first quarter.

Another potential area of growth is oil plam plantations. The group currently has 15000 acres in Indonesia via a 75% owned JV. Roughly half the land has been planted with oil palm trees that have an average age of four years.

QL 7084 30th AUG

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