New plant contribution a positive for QL Resources

TheStar Thu, Apr 04, 2024 12:00am - 1 month View Original


Maybank IB Research the new plant will start to positively contribute to group earnings from financial year 2025 onwards.

KUALA LUMPUR: With its new surimi processing plant in Indonesia opening soon, the outlook for QL Resources Bhd’s marine products manufacturing business segment remains positive in the medium term, says Maybank IB Research.

According to the research firm, the new plant will start to positively contribute to group earnings from financial year 2025 (FY25) onwards, with a timeline of three to five years to hit its full capacity. “In the shorter-term, however, surimi average selling prices (ASPs) may be suppressed due to lower fish catch and ongoing price pressure from heightened global competition,”Meanwhile, for its integrated livestock and feed meal business segment, the research house noted that margins should be able to sustain from ongoing egg subsidies in Malaysia and eased feedstock raw material costs to buffer volatility for egg ASPs in Vietnam and Indonesia.

As for its Family Mart convenience stores, Maybank IB Research said new store opening plans appear to be intact.

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