PETALING JAYA: QL Resources Bhd
is confronting an uncertain outlook as analysts diverge on its growth trajectory.
Hong Leong Investment Bank (HLIB) Research is keeping a hopeful stance, stating: “Management maintains a cautiously optimistic stance for financial year ending March 2026 (FY26), underpinned by stable operating fundamentals.”
The research unit highlighted potential tailwinds from stabilising egg prices, low input costs in marine operations, and clean energy contributions under the National Energy Transition Roadmap.
However, CGS International (CGSI) Research painted a gloomier picture, warning of “further earnings pressure” from subdued marine and solar segments, which could lead to a 4.4% core earnings per share compounded annual growth rate over 2024 to 2027 and a meagre forecast of a 1.1% FY26 dividend yield.
The company’s 2Q26 results underscored these challenges. Revenue edged up 0.4% quarter-on-quarter (q-o-q) to RM1.73bil but fell 7.9% year-on-year (y-o-y), while core profit after tax and minority interest (Patami) rose 15.5% q-o-q to RM116.2mil yet declined 9.4% y-o-y.
For the six months ended September (1H26), revenue dipped 1.5% y-o-y to RM3.4bil, with core Patami down 8% to RM216.8mil.
HLIB Research deemed the figures “broadly in line” at 47% of full-year forecasts, crediting “resilient operational performance despite uneven segmental dynamics.”
CGSI Research, however, called it a miss, noting it represented only 46% of estimates amid typical seasonality favouring 2Q and 3Q.
Segment performance also revealed stark contrasts, as the marine product manufacturing division, QL’s aquaculture arm, saw revenue drop 10.8% y-o-y in 2Q26 to RM349.4mil due to “weak fish landing and soft global fishmeal prices,” accoridng to HLIB Research.
This dragged 1H26 pre-tax profit down 13.3% y-o-y, accounting for 54% of the group’s decline, as CGSI Research observed.
Integrated livestock farming (ILF) offered some relief, with 2Q26 revenue up 3.1% q-o-q to RM890.3mil, boosted by higher egg prices post-Malaysia’s August 2025 ceiling price removal.
HLIB Research noted QL’s ILF pre-tax profit surged 56.7% q-o-q, while CGSI Research acknowledged a slim 1.5% y-o-y gain in 1H26 to RM142.2mil, aided by lower feed costs and better margins from branded eggs in Vietnam and Indonesia.
QL’s convenience stores (Family Mart) revenue also grew modestly, up 5.1% y-o-y in 2Q to RM316.7mil, driven by 55 new outlets and 42 Family Mart Mini stores, though subdued sentiment and competition weighed in.
In response to its 2Q26 results, analysts adjusted forecasts, with CGSI Research slashing FY26 to FY28 core profits by 8.8% to 9.4%, citing slower marine product manufacturing and clean energy revenues, deriving a reduced Gordon Growth Model target price of RM3.90.
