QL Resources achieves 11% growth on 4Q net profit, pays 4.5 sen dividend

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KUALA LUMPUR (May 30): QL Resources Bhd's net profit grew 11% to RM43.23 million in the fourth quarter ended March 31, 2019 (4QFY19), against RM38.85 million a year ago, supported by its marine product manufacturing and palm oil activities divisions.

Quarterly revenue grew 14.6% to RM898.03 million, from RM783.87 million in the same quarter a year ago.

QL proposed a final single-tier dividend of 4.5 sen per share in respect of FY19.

In its exchange filing, the group said its marine product manufacturing division recorded 18% more sales and 45% higher earnings in 4QFY19, due to the recovery of low fish catch cycle in Malaysia water, as well as higher contribution from surimi-based products.

Its palm oil activities segment showed lower sales due to weaker crude palm oil (CPO) price, but earnings increased substantially on the back of higher contribution from its associate company Boilermech Holdings Bhd, in addition to better oil extraction rate and CPO milling margins.

While its integrated livestock farming division saw improved sales on higher contribution from its Peninsular and Indonesian poultry units, earnings, however, fell 12% due to lower contribution from feed raw material trade and its Vietnamese poultry unit.

For the full financial year, net profit stood at RM216.74 million, up 11.2% from RM194.99 million in the preceding year, while revenue increased 10.7% to RM3.61 billion, from RM3.26 billion in FY18.

QL's management said they are confident that the group's FY20 performance will improve against FY19, barring unforeseen events.

Shares in QL closed seven sen or 1.02% lower today at RM6.80 apiece, for a market capitalisation of RM11.03 billion.