PETALING JAYA: QL Resources Bhd
remains confident of delivering high single-digit profit growth over the next six years, underpinned by expansion plans across its marine products, livestock farming, convenience store and palm oil-related businesses.
CIMB Research said the group aims to achieve a high-single digit pre-tax profit compound annual growth rate (CAGR) over the financial year 2027 (FY27) to FY32 is broadly in line with FY26 to FY29 pre-tax profit CAGR forecast of 7%.
“We believe this will be supported by ongoing growth initiatives across its four key business pillars.
“In the marine product manufacturing segment, QL is prioritising downstream food manufacturing via QL Innofood Park, which is expected to add about 130,000 tonnes per annum of incremental capacity once it is fully commissioned, enabling a broader RTC/RTE portfolio beyond surimi into adjacent food categories such as chicken, soy, and flour-based products,” the research house said in a report.
Further, CIMB Research said in the integrated livestock farming segment, the focus remains on selective layer expansion in Vietnam and Indonesia, with an ambition to become a top 20 global egg producer by layer hen population over the next five years, while strengthening QL Eggs as a preferred consumer brand in Malaysia.
“As for its convenience store chain (CVS) segment, QL is targeting about 600 CVS outlets by end-2028 (about 490 outlets by end-FY26), with about 60 new store openings planned in FY27,” the research house said, adding that the focus is shifting beyond store count towards new product launches, tighter execution, and a more value and convenience-led proposition.
Meanwhile, for the palm oil and environmental technology segment, CIMB Research said QL is building a recurring income base through services, maintenance, and BESS asset development, while capturing data centre-linked infrastructure opportunities.
“The bio-energy division provides a stable earnings base, and the group intends to divest its Palm Oil Activities assets in Malaysia and Indonesia in stages, subject to favourable market conditions.”
CIMB Research said QL shared that input, packaging, and logistics costs have risen owing to impacts from the United States-Iran war, which could lift its cost base.
“The group aims to mitigate these pressures through ongoing hedging of key input costs, with cover of around four to six months, as well as tighter cost control.”
That said, CIMB Research said QL does not rule out selective price increases if cost pressures persist.
“While the company has observed more cautious consumer sentiment, it has not seen any major impact on 1Q27 sales so far, which we attribute to QL’s exposure to essential food categories and its relatively defensive demand profile.”
