KUALA LUMPUR (July 31): Affin Hwang Capital Research has maintained its “Buy” rating on QL Resources Bhd at RM6.87 with an unchanged target price of RM8 and said following its meeting with QL Resources (QL), it continue to foresee sustainable earnings growth for the company, underpinned by healthy consumer demand fueling its upstream expansion plans.

In a note today, the research house said it trimmed its earnings forecasts to reflect a slower recovery for QL’s palm oil segment and lower tax incentives, but still expects doubledigit core earnings growth in FY20, driven by its marine segment and Family Mart operations.

“Post-revision, we maintain our Buy rating on QL with an unchanged SOTP-derived target price of RM8.00,” it said.