QL 3Q net profit rises 24.7% on higher contribution from poultry ops

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KUALA LUMPUR (Feb 26): QL Resources Bhd (fundamental: 1.1 ; valuation: 1.5) saw its net profit for its third quarter ended Dec 31, 2014 (3QFY15) increase by 24.7% to RM55.62 million or 4.46 sen per share, from RM44.61 million or 3.89 sen per share in 3QFY14, mainly due to higher contributions from raw material trade and poultry operations from its integrated livestock farming division.

In a filing with Bursa Malaysia today, QL reported a 10.1% increase in revenue to RM732.82 million in 3QFY15, from RM665.63 million in 3QFY14, mainly due to overall higher contribution from its marine product manufacturing, namely its surimi-based products, fishmeal operations and new shrimp farming.

Net profit for its nine month period ended Dec 31, 2014 (9MFY15) increased by 18.6% to RM143.85 million or 11.64 sen per share, from RM121.32 million or 10.59 sen per share in 9MFY14, due to higher contributions from its Sabah crude palm oil mills, its associate Boilermech Holdings Bhd (fundamental: 2.30; valuation: 1.50), as well as lower losses from Indonesia’s palm oil operations.

QL’s revenue for 9MFY14 increased by 10.4% to RM2.04 billion, from RM1.85 billion in 9MFY13, mainly due to contribution from its fishmeal operations and surimi-based products, as well as its Indonesian fishery operations and new shrimp farming contribution.

On its outlook for the upcoming quarter, QL said it is optimistic on the performance of all three of its sectors.

Its shares closed unchanged at RM3.70 today, with a market capitalisation of RM4.63 billion.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)