PETALING JAYA: QL Resources Bhd
is expected to return to a healthier growth trajectory for the financial year ending March 31, 2027 (FY27) after a challenging FY26, with analysts turning more constructive on the company’s outlook as the company’s marine products manufacturing (MPM) division recovers and other business segments remain resilient.
RHB Research upgraded the stock to a “buy” from with an unchanged target price (TP) of RM3.94.
“Its FY27 should deliver healthy earnings growth again after the pause in FY26.”
UOB Kay Hian (UOBKH) Research also upgraded the stock to a “buy” with a TP of RM4.
“QL Resources’ valuation has declined by over 10% over the past month, likely due to its exclusion from the MSCI Malaysia Index. This has carved out an opportune entry,” it pointed out.
Moreover, Hong Leong Investment Bank (HLIB) Research maintained a “buy” call with a reduced TP of RM5 from RM5.70 previously.
“We continue to see valuation support from QL Resources’ defensiveness and its unique positioning as a consumer staple proxy with healthy growth drivers across the MPM, integrated livestock farming, and palm oil and clean energy divisions,” said HLIB Research.
QL Resources reported a FY26 core net profit of between RM439.4mil and RM450.4mil, depending on analysts’ adjustments, versus RM455.6mil a year earlier.
Revenue was largely unchanged at approximately RM7.05bil.
“Its FY26 results met our forecast after the earnings growth trajectory resumed in the fourth quarter ended March 31, 2026, supported by an MPM recovery,” said RHB Research.
The research house noted that the latest quarter marked a turnaround after four consecutive quarters of negative growth.
UOBKH Research said the outlook for QL Resources’ MPM segment remains positive, supported by full vessel mobilisation since end-March, encouraging fish landings, stable demand, lower input costs and expected aquaculture improvement from the new culture cycle.
