KUALA LUMPUR (May 29): QL Resources Bhd (KL:QL) shares jumped in early trade on Friday after its fourth-quarter results came in higher, meeting most analysts’ expectations.
The counter rose 22 sen or 6.5% to RM3.62 in early trade. It closed at RM3.60 at the end of the trading day, valuing the integrated agro-based group at RM13.1 billion.
According to RHB, core net profit of RM439 million for the financial year ended March 31, 2026 (FY2026) accounted for 100% of their forecast but 96% of street estimates, with the research house making no change to its earnings forecasts and SOP-derived target price of RM3.94.
RHB upgraded the stock to 'buy' from 'neutral', and in a note on Friday said: “We believe the recovery in MPM (marine product manufacturing) business is sustainable on better fish landing, easing competition and higher ASPs (average selling prices)”.
The research house noted that after four consecutive quarters of negative growth, 4QFY2026 core earnings grew 9% year-on-year, driven by a recovery in marine products manufacturing on a pick-up in product volume and ASP.
RHB added that “the robust growth of regional operations in Indonesia and Vietnam, rising contribution from branded eggs and favourable feed costs should help to maintain the stability of ILF (integrated live farming) earnings”.
Meanwhile, CIMB Securities noted that excluding egg subsidies, QL Resources would have posted an overall FY2026 core profit before tax (PBT) growth of 15.5% year-on-year to RM607.9 million, “suggesting resilient profitability despite lower egg subsidy”.
CIMB maintains its 'buy' rating on the stock, with an unchanged sum of parts (SOP)-based target price of RM4.60, stating: “With the worst likely behind QL, we project FY2027F CNP (core net profit) growth of 5.8% year-on-year, supported by stronger prospects in the palm oil and clean energy (POCE) and MPM segments”.