QL’s 1QFY10 earnings of RM22.3m were well within our expectation, which is at
23% of our full year forecast. Y-o-y, its net profit was slightly higher with improved EBITDA margin at 10.9%. This was mainly attributed to higher contribution from integrated livestock farming (ILF) division which saw better egg prices as well as contribution from its newly acquired farms. Sales from marine product manufacturing (MPM) and palm oil activities (POA) were seen to be lower this quarter as compared to 1QFY09, partly due to stronger surimi demand last year and heavy rainfall this quarter. We maintain our FY10 and FY11 estimates with a BUY recommendation at unchanged target price of RM3.68.
23% of our full year forecast. Y-o-y, its net profit was slightly higher with improved EBITDA margin at 10.9%. This was mainly attributed to higher contribution from integrated livestock farming (ILF) division which saw better egg prices as well as contribution from its newly acquired farms. Sales from marine product manufacturing (MPM) and palm oil activities (POA) were seen to be lower this quarter as compared to 1QFY09, partly due to stronger surimi demand last year and heavy rainfall this quarter. We maintain our FY10 and FY11 estimates with a BUY recommendation at unchanged target price of RM3.68.