QL Resource more than doubles net profit to RM93.9m in 2Q

KUALA LUMPUR (Nov 29): Integrated agro-based business group QL Resources Bhd’s net profit more than doubled to RM93.9 million for the second quarter ended Sept 30, 2022 (2QFY2023), from RM45.94 million in the corresponding quarter last year, as its business segments — apart from palm oil and clean energy — reported stronger contributions.

Revenue for 2QFY2023 grew 31.26% to RM1.64 billion from RM1.25 billion, the group’s filing showed. Earnings per share (EPS) expanded to 3.86 sen from 1.89 sen. No dividend was declared.

The group’s marine product manufacturing business reported a 44% jump in profit before tax (PBT) to RM76.38 million from RM53.17 million due to higher sales and production volume. Profit margin also improved due to improved selling prices from the strong US dollar.

PBT from its integrated livestock farming (ILF) business was a whopping 41 times higher at RM34.99 million, compared with RM835,000 a year ago, thanks to the overall turnaround in its farming operations — especially in Vietnam — following the normalisation of the market after the severe disruptions previously caused by stringent Covid-19 control measures.

In Malaysia, cost subsidy from the government to keep the selling price under control also helped to mitigate the high input costs, it added.

The group’s convenience store chain business, meanwhile, reported a significant PBT improvement to RM14.69 million, from RM5.72 million.

Its palm oil and clean energy segment is the only segment that recorded growth contraction, with PBT dropping 71% to RM3.18 million from RM11.04 million.

For the first half of FY2023 ended Sept 30, 2022 (1HFY2023), QL Resources’s net profit doubled to RM176.33 million from RM88.14 million in 1HFY2022, as revenue rose 27.76% to RM3.16 billion, from RM2.47 billion.

Going forward, QL Resources’ management is cautiously optimistic that its business performance will remain resilient, with continued government subsidy helping to mitigate high farming costs.

QL Resources’ shares closed nine sen or 1.65% higher at RM5.53 on Tuesday (Nov 29), giving the group a market capitalisation of RM13.46 billion.