QL Resources expects to maintain double-digit growth throughout FY15

by **Cals** Mon 25 Aug 2014, 03:22

Business & Markets 2014

Written by Gho Chee Yuan of theedgemalaysia.com

Friday, 22 August 2014 14:47

KUALA LUMPUR (Aug 22): After posting double-digit growths in its net profit and revenue in its first quarter results on Wednesday, QL Resources Bhd said it expects to maintain the same growth momentum in its top line and bottom line for the rest of the current financial year ending March 31, 2015 (FY15).

This will be driven by two of its core businesses – marine product manufacturing (MPM) and integrated livestock farming (ILF), which QL Resources expects will be posting strong organic growths for the rest of the year.

"The price for livestock in the regional market is in a recovering pace," said QL Resources group managing director Chia Song Kun, who noted that this will contribute positively to the group's second half financial results (2H15).

He said a bumper wheat harvest is also to be expected this year due to El-nino effect.

"This will be translating to cheaper farming cost in the next few quarters, especially in the third and fourth quarters," he said.

He said the MPM division is expected to perform well as the group is expanding its business into aquaculture and with that there is a possibility of an increase in exports of its fishmeal products.

He was speaking to reporters after chairing the company's annual general meeting here today.

He also revealed that QL is looking at expanding its business regionally and is now shopping for some “suitable companies” to do so.

"There are several companies we are negotiating with and we have set aside an amount of money for the acquisition,” he said, but was tight-lipped about exactly how many companies or who they are, only admitting that they are separately based in Malaysia, Indonesia and Vietnam.

"It would be good if we could acquire three or four assets within the next [few] financial years," he said, but added that the acquisition plan is not guaranteed as many details need to be ironed out.

"There will be no time frame for the acquisition. But should there be a need, we will revise our budget and capital expenditure accordingly,” he added.

In term of risks, Chang noted its palm oil activities (POA) division will be less promising due to the weakening in crude palm oil price globally.