PETALING JAYA: Analysts continue to be constructive on QL Resources Bhd
’s (QL) outlook heading into its financial year ending March 31, 2027 (FY27), underpinned by resilient earnings contributions and growth strategies across its four business segments.
TA Research said QL’s integrated livestock farming business is expected to deliver a stable performance in FY27 on the back of consistent feed raw material trading volumes, the recent recovery in unbranded egg prices, and stronger contributions from Indonesia.
“Branded egg sales expanded by 31% between FY23 and FY26, broadly in line with the 30% growth in total egg sales in Malaysia over the same period, reflecting growing consumer acceptance and the effectiveness of the group’s branding strategy,” added the research house.
Within its marine product manufacturing (MPM) segment, QL is said to be prioritising its downstream manufacturing, with intentions to expand production volume over the next five years through the development of its QL InnoFood Park integrated food manufacturing hub.
TA Research said the group plans to diversify beyond surimi-based products into soy, chicken and flour-based food offerings over the longer term.
“This expansion strategy positions the MPM segment to capitalise on structural growth opportunities in the ready-to-eat and ready-to-cook food segments, driven by rising urbanisation and evolving consumer preferences,” said the research house.
TA Research revised its FY27 earnings forecast by 0.2% while raising FY28 estimates by 1.4%, reflecting higher capital expenditure and borrowings for its long-term expansion plans, as well as stronger capacity contributions from MPM in FY28.
It also introduced its FY29 core earnings forecast for QL at RM545.3mil, representing a 5.6% year-on-year rise.
Moreover, TA Research has maintained its “buy” call on the stock, with a target price of RM4.18 per share, up from RM4.05 previously, following its earnings revisions.
According to CIMB Research, QL has earmarked an RM2.6bil capital expenditure programme for FY27 to FY32.
The investment is expected to drive capacity expansion, strengthen downstream value-added operations, and support long-term earnings resilience.
For its convenience store chain, QL is expanding its footprint by targeting around 600 outlets by end-2028, while placing near-term emphasis on new product launches, tighter operating execution, and a more value-led proposition.
Meanwhile, its palm oil and clean energy segment is pursuing phased divestment of assets and increasing exposure to renewable energy and sustainable infrastructure opportunities.
CIMB Research reiterated its “buy” rating on QL, with an unchanged target price of RM4.60, adding that the current valuation appears compelling.
“Furthermore, we see scope for QL to re-rate closer to its five-year mean, backed by its diversified earnings base, defensive demand profile, and strong execution track record.”
