KUALA LUMPUR (Oct 2): QL Resources Bhd said the discrepancy between the actual transacted value and mandate value between its subsidiary QL Tawau Feedmill Sdn Bhd and M.B. Agriculture (Sandakan) Sdn Bhd was due to the increase in sales quantity.

The deviation exceeded 10% of the mandate value of RM5.5 million approved at QL Resources’ annual general meeting (AGM) on Aug 22 last year.

The said mandate expired and was renewed on the Company’s AGM on Aug, 27 2015.

Between Aug 23 and Aug 27 this year, however, the actual transacted value between the two parties stood at RM6.21 million, 12.95% higher than the mandate value.

“The nature of the transaction was the sale of animal feed by QL Tawau Feedmill to M.B. Agriculture (Sandakan),” QL Resources said in its filing to Bursa Malaysia today.

QL Resources reported a flat net profit of RM40.93 million or 3.28 sen per share in first quarter ended June 30, 2015 (1QFY16), on the back of RM655.3 million revenue.

QL Resources (fundamental: 1.3; valuation: 1.1) closed 1 sen lower at RM3.99, with 887,000 shares traded. Its share price gives it a market capitalisation of RM4.99 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.)