OSK: "Buy" call on QL Resources stays

OSK Research has maintained a "buy" call for QL Resources Bhd with the
fair value unchanged at RM3.62, backed by the company's solid earnings
track record and an on-track expansion in Vietnam and Indonesia.

In a statement today, OSK Research said QL Resources is the biggest surimi producer in Malaysia with a 50 per cent market share.

It also said that the company plans to add another new production line for Surimi and fishmeal operations in Indonesia.

"Based
on this plan, starting from financial year 2013, the company will boost
its production capacity to 10,000 tonnes per annum from the present
5,0000.

"The company has also expanded its integrated livestock
farming by venturing into Vietnam and Indonesia," the research firm
added.

"As for its palm oil division, a new crude palm oil mill
in Indonesia was completed early this year, with a palm pellet plant
slated for completion by the second half 2012," the research firm said.

OSK
Research said the company has planted 10,000 hectares of its oil palm
estates in Indonesia and is expected to complete planting on 15,000
hectares by financial year 2014.-- BERNAMA