QL Resources optimistic of beating record FY19 performance

QL Resources optimistic of beating record FY19 performance
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KUALA LUMPUR (Aug 29): Agro-food producer QL Resources Bhd, which reported a 15.3% increase in net profit its first financial quarter ended June 30, 2019 (1QFY20), is optimistic of growing better than last year.

"We are optimistic about the prospect for this year, which we expect to grow better than FY19," the group's founder and executive chairman Chia Song Kun told reporters after the group's annual general meeting here.

For the full financial year (FY19), its 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.

On the capex front, Chia said the group has set aside RM400 million for capex for FY20, mainly for expansion plans, including for chicken farm, marine products manufacturing and FamilyMart convenience stores.

According to him, FamilyMart — which has already broke even — will further expand its footprint in Malaysia, to hit 170 stores by end of FY20 — almost doubling the number of stores as at FY19.

The expansion will focus on Melaka and Negeri Sembilan, Johor as well as the Klang Valley.

As at noon market break, shares of QL Resources rose one sen or 0.14% to RM6.91, bringing it a market capitalisation of RM11.21 billion. The counter saw some 1.07 million shares exchanging hands.