Why Invest in QL Resources | KLSE Stock Series

With different hurdles mounting up against the agro-based industry, QL continues to seek development with conservative procedures while initiating and executing expansion plans. We make educated and deliberate choices to invest in areas of prospective development while leaning on our six capitals – Natural, Manufactured, Intellectual, Human, Social and Financial to produce long-term value for our stakeholders.

QL Resources Bhd receives money from three primary business activities:

Marine Product Manufacturing

It is now the biggest fishmeal factory in Malaysia and also the major surimi producer in Southeast Asia. QL Resources Bhd has the ability to manufacture up to 35,000 MT of surimi a year, 40,000 MT of surimi-based goods a year, and 35,000 MT of fishmeal products a year. This business has earned RM 905.4 million in sales and RM 124.2 million in profits before tax (PBT) and so, is the largest source of revenue to QL Resources Bhd in 2018.

Integrated Livestock Farming

It is one of the major animal feed raw materials and poultry farming operations in Malaysia. Today, QL Resources Bhd is able to produce as much as 5.5 million eggs per day, 40 million Day Old Chicks (DOC), 20 million broilers, and 1 million MT of animal raw feeds per annually. This business has earned RM 1.97 billion in sales and RM 103.2 million in PBT and hence, is the second highest income contributor to QL Resources Bhd in 2018.

Palm Oil Activities

It owns 1,200 hectares of mature palm oil fields in Sabah and another 9,000 hectares of mature palm oil estates in East Kalimantan, situated in Indonesia. It has three palm oil mills with a combined milling capacity of 1.1 million MT per year. This business has earned RM 387.3 million in sales and RM 27.9 million in PBT and hence, is the lowest income provider to QL Resources Bhd in 2018.

QL Resources Intrinsic Value

As of today (2022-09-12), QL Resources Bhd's Intrinsic Value: Projected FCF is RM1.44. The stock price of QL Resources Bhd is RM5.06. Therefore, QL Resources Bhd's Price-to-Intrinsic-Value-Projected-FCF of today is 3.5.

Bursa Symbol: 7084

Issued & Paid-up Shares: 1,622,438,000

Cash from Operating Activities 291.75

Total Debt 1,377.14

Company Profile:
QL Resources Berhad is a multinational agro-food company that farms and produces protein and food energy sources. The Company's principal activities are integrated livestock farming, marine products manufacturing and palm oil activities. The Company operates through three segments: marine-products manufacturing, palm oil and biomass energy activities, and integrated livestock farming. The marine-products manufacturing segment includes deep-sea fishing, manufacture and sale of fishmeal, surimi and surimi-based products. Its marine-product consumer foods brands, Mushroom and Figo, are distributed across Asia, Europe and North America. The palm oil and biomass energy activities segment includes plantation, crude palm oil milling and downstream palm biomass technology. The integrated livestock farming segment includes distribution of animal feed raw materials, food related products and livestock farming. It has operations in Malaysia, Indonesia, Vietnam, China and Singapore.

Happy Investing! 😉


Reference:
http://ql.listedcompany.com/misc/ar2019.pdf
http://ql.listedcompany.com/stock_fundamentals.html
https://www.malaysiastock.biz/Corporate-Infomation.aspx?securityCode=7084
https://klse.i3investor.com/quoteservlet.jsp?sa=ss&q=QL

https://www.gurufocus.com/term/iv_dcf_share/XKLS:7084/Intrinsic+Value+%2528DCF+Projected%2529/QL+Resources+Bhd