Monday, October 17, 2011

QL Resources gains in early trade

KUALA LUMPUR: QL RESOURCES BHD [] shares advanced in early trade on Monday, Oct 17 after OSK Research maintained its Buy rating on the stock and said QL's overseas expansion was on track.

At 9.35am, QL rose three sen to RM2.87 with 43,900 shares traded.

OSK Research in a note Oct 17 said QL's surimi and fishmeal plants in Surabaya, Indonesia are expected to hit 4,000 tonnes perannum each by 1QFY13 (FYE Mar), adding that earnings started contributing since August 2011.

The research house QL's management expects prices of surmi, fishmeal and eggs to be relatively stable going forward.

It said the new expansion would contribute about 3% and 12.4% to FY12 and FY13 earnings forecast.

'We trim our FY12 and FY13 earnings forecasts by 2.9% - 5.76% respectively, following some historical number updates by the management.

'QL remains a BUY at a lower FV of RM3.62 given the fact that its expansions across ASEAN remain intact,' it said.

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