October 6, 2010

QL - Kenanga keeps 'buy' call on QL Res

Stock Name: QL
Company Name: QL RESOURCES BHD
Research House: KENANGA



Kenanga Research today revised upward the FY11's net profit forecast on QL Resources Bhd by 1.5 per cent to RM127.6 million from RM125.5 million previously.

In a note today, the research house said QL Resources is expected to see higher contributions from its new associates', Lay Hong Bhd and Biolermech Sdn Bhd.

The company recently had proposed to acquire 40.51 per cent in Biolermech.

Kenanga said Biolermech is expected to strongly compliment QL's renewable energy project in Tawau, as it provides a wider range of biomass energy solutions to various industrial players, with both biomass feedstock and boilers.

Furthermore, QL Resources also stands to benefit from Boilermech''s market presence in Indonesia, Thailand, Myanmar, the Ivory Coast and Cambodia and also a steady contribution at the associate level.

Kenanga maintained a buy review on QL Resources at a target price of RM5.15. - Bernama

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