KUALA LUMPUR (Dec 2): Research houses said QL Resources Bhd's 6MFY20 core net profit was within expectations, with the marine segment remaining as its key earnings driver on the back of a sustained recovery in fish catch.

According to Affin Hwang Investment Bank Bhd, QL's turnover rose 19% year-on-year (y-o-y) to RM2.1 billion in 6MFY20, with higher production driving stronger sales for its marine products manufacturing segment (+24% y-o-y) and integrated livestock segment (+23% y-o-y).

"This was offset by the weaker palm oil activities (POA) segment, which posted a lower fresh fruit bunch (FFB) production amid weaker CPO prices," it added.

Hong Leong Investment Bank Research noted that QL's core profit after tax and minority interests (PATAMI) growth of 15.1%, amounting to RM120.2 million, was within its expectations and was partially mitigated by Family Mart's operations.

"QL currently has 156 operational outlets, with plans to open 300 outlets by FY22," it said.

Affin Hwang maintained its "Buy" call on QL with an unchanged target price (TP) of RM8.50, while HLIB Research maintained its "Sell" call with a higher TP of RM6.56.

As at 10.39am, QL shares rose 6 sen or 0.83% to RM7.31, valuing it at RM11.76 billion.