PETALING JAYA: MBSB Research has downgraded integrated agro-based business group QL Resources Bhd
to “neutral” with an unchanged target price of RM4.11 on rich valuations following its recent share-price appreciation.
MBSB Research said it believes that the positive prospects have been priced in, and told clients in a report that its earnings forecasts and its fundamental view on the company were unchanged.
In addition, the research house said it has reviewed QL’s environmental, social and governance (ESG) profile following its financial year 2026 (FY26) integrated annual report.
The research house noted that QL reported under the International Sustainability Standards Board’s International Financial Reporting Standards S1 and S2 standards for the first time in FY26.
This came with reference to the Global Reporting Initiative Standards, Sustainability Accounting Standards Board Standards, Task Force on Climate-related Financial Disclosures and the Malaysian Code on Corporate Governance.
The review indicates improving disclosure quality and a set of initiatives embedded within QL’s core operations across integrated livestock farming (ILF), marine products manufacturing, the convenience store (CVS) chain, and palm oil and clean energy, it added.
MBSB Research said QL’s positioning as one of the region’s largest integrated egg, poultry and marine-protein producers underpins its community programmes.
Its flagship “C Our Future” programme – now in its third year – delivered 95,940 eggs to 20 Tabikas, benefiting 683 children in FY26, and recorded a 29.7% reduction in underweight cases among measured children, it said.
MBSB Research added that the group allocated RM15.67mil under its shared- prosperity initiatives and redistributed 29,746.76 meals through the CVS business.
These programmes support QL’s social licence in categories exposed to affordability and price-control sensitivity, the research outfit said.
Meanwhile, MBSB Research said its downgrade on QL was valuation-driven, with its earnings forecasts and target price on the stock unchanged.
“We remain constructive on QL’s medium-term fundamentals, supported by its diversified exposure across its segments.”
It said ILF earnings should remain mixed, with Peninsular Malaysia layer margins pressured by low egg prices, supported by branded egg contribution, improved Indonesia productivity and a potential Vietnam turnaround as egg prices recover.
CVS remains challenged by soft consumer sentiment and competition, with operational efficiencies and continued store expansion providing support, it said, while palm oil and clean energy should continue to benefit from bioenergy and water treatment project deliveries, with palm oil performance supported by higher crude palm oil prices due to El Nino.
At last look, the stock was at RM3.96.
MBSB Research said QL is a constituent of the FTSE4Good Index Series with a Three-Star FTSE4Good rating and holds an MSCI ESG rating of BBB.
The FY26 statement is prepared on a double-materiality basis and covers 17 subsidiaries across the four operating segments, it added.
For its financial year ended March 31, 2026, QL’s net profit stood at RM450.35mil, compared with RM455.08mil in the previous corresponding period.
Moreover, revenue was flat at RM7.05bil.
