SHAH ALAM (Aug 25): QL Resources Bhd expects its results for the second half of the current financial year ending March 31, 2018 (2HFY18) to be better compared to the first half on the back of strong recovery in the prices of eggs and crude palm oil.

"Our 2HFY18 will look much better with the help of the egg prices which we see have rebounded very strongly and with contribution from our associate, Boilermech Holdings Bhd, for our palm oil," said group managing director Chia Song Kun.

Boilermech is mainly involved in the palm oil milling industry. Its activities also include the manufacture, installation and repair of bio-energy systems, including the generation of energy from bio-based materials and trade of related parts and accessories.

Chia said a low fish catch, due to unpredictable weather, is affecting the group's marine products manufacturing segment, which produces surimi, fishmeal, surimi-based products and frozen fish.

"Low fish catch cycle remains a concern moving forward," he told reporters after the group's annual general meeting today. "The low fish catch cycle has affected our first quarter results and I think this situation will continue into the second quarter if there is no improvement in fish catch."

On its integrated livestock farming, Chia said the increase in feed mill volume, related raw material trade and egg prices should translate to potentially higher revenue contribution in 2HFY18.

He said egg prices have rebounded by about 40% since this month, from as low as 22 sen previously to 30 sen currently.

For its palm oil activities, QL also expects 2HFY18 to see improvements as crude palm oil prices are projected to stabilise at RM2,500 to RM2,700 per tonne.

"I think our palm oil activities will be sustained because we have our own plantation in Indonesia which currently accounts for about 90% of our planted estate, and the trees are getting matured so we expect to see its yield increase significantly," said Chia.

QL is also targeting to open 10 FamilyMart convenience stores by 2018 and as of today, there are 20 stores in the Klang Valley.

"We will focus on Klang Valley at this moment as there is still lot of untapped market here, and at the same time we still study on when to look out for other states," said QL executive director Chia Lik Khai.

Yesterday, QL reported a flat net profit of RM42.21 million for first quarter ended June 30, 2017 compared with RM42.13 million a year earlier. Revenue was up 16.27% to RM778.47 million from RM669.54 million.

At 3.45pm, QL's share price was down one sen or 0.2% at RM4.94, for a market capitalisation of RM6.15 billion.