PETALING JAYA: MBSB Research remains cautiously optimistic on QL Resources Bhd
’s near-term prospects, underpinned by the diversified and defensive nature of its staple food portfolio.
“Within integrated livestock farming, earnings should stay resilient as broadly stable feed costs and a gradual recovery in egg prices across Malaysia, Indonesia and Vietnam help offset the removal of price controls, with branded egg sales continuing to provide margin support,” it said.
The research house has downgraded the stock to “neutral” from “buy”, following a recent rebound in the share price, even as the group embarks on one of its largest long-term expansion projects.
It was positive on the QL Innofood Park development, which enhances long-term earnings optionality by expanding production capacity and broadening QL’s protein offerings.
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