Kenanga downgrades QL Resources outlook

In line with the lower forecast, Kenanga downgraded QL Resources to “market perform” and cut its target price to RM6 from RM6.90 previously, based on 51 times forecast on FY22 price-earnings ratio, closely in line with plus-one standard deviation over its three-year mean. (QL Resources poultry)

KUALA LUMPUR: Kenanga Research has downgraded QL Resources Bhd’s outlook on the back of volatile raw prices following the earnings disappointment in the group’s recent quarterly results.

The research house said the group’s first quarter ended June 30, 2021 (Q1FY22) profit after tax after minority interest of RM42mil came to 14% and 15% of its and consensus full-year estimates due to the re-emergence of a low fish landing cycle and an unforeseen drastic regional surge of the pandemic, contributing to weaker sales in its marine products manufacturing (MPM).