KUALA LUMPUR (APRIL 6): BIMB Securities Research has initiated coverage on QL Resources at RM3.21 with a Neutral recommendation and target price of RM3.43.
The research house in a note Friday said that despite a prospective global economic slowdown, QL’s revenue growth would remain intact.
In addition, the demand for its basic food products such as eggs, fishmeal and feed raw materials are expected to be resilient, it said.
“Due to the recent share price run-up, we have a Neutral rating on QL with a target price of RM3.43 based on PER of 19x CY2012 EPS. The PER multiple is +1 std. dev of its past 3-years PE valuation which is justified by its solid fundamental and long-term earnings growth potential.
QL’s core activities includes marine products manufacturing (MPM), palm oil activities (POA) and Integrated Livestock Farming Activities (ILF).
“As of FYE03/11, ILF has been the biggest contributor to the group’s total revenue (56%), followed by MPM (25%) and POA (19%). We are initiating coverage on QL Resources with a Neutral rating on the stock with an indicative target price of RM3.43 based on 19 times CY2012,” said BIMB Securities Research.
The research house in a note Friday said that despite a prospective global economic slowdown, QL’s revenue growth would remain intact.
In addition, the demand for its basic food products such as eggs, fishmeal and feed raw materials are expected to be resilient, it said.
“Due to the recent share price run-up, we have a Neutral rating on QL with a target price of RM3.43 based on PER of 19x CY2012 EPS. The PER multiple is +1 std. dev of its past 3-years PE valuation which is justified by its solid fundamental and long-term earnings growth potential.
QL’s core activities includes marine products manufacturing (MPM), palm oil activities (POA) and Integrated Livestock Farming Activities (ILF).
“As of FYE03/11, ILF has been the biggest contributor to the group’s total revenue (56%), followed by MPM (25%) and POA (19%). We are initiating coverage on QL Resources with a Neutral rating on the stock with an indicative target price of RM3.43 based on 19 times CY2012,” said BIMB Securities Research.
