February 8, 2011

QL - RHB Research maintains Outperform on QL Resources

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

KUALA LUMPUR: RHB Research Institute is maintaining its Outperform recommendation on QL Resources following its strong positioning as a basic food player.

It said on Tuesday, Feb 8 that post placement and share split, its fair value is revised to RM3.44 (from RM6.50 previously) based on a new target of 18x FY12 PER (from 17x CY11 previously).

'We have raised the target PER of 1x to reflect the increased liquidity of its stock post the private placement and share split, as well as QL's strong positioning as a basic food player, especially given the intensifying news flow on global food shortages driven by lack of supply,' it said.

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