The 9MFY08 earning mainly boosted by the Integrated LiveStock Farming and Marine Products Manufacturing Divisions. Cruel oil milling business was soften by intense competition from other milling in the area and lower FFB processed. The major shareholder and the founder of the QL Chia family is confidence that the business continue double digit growth next few years. The group has a few major capital investments in the pipeline, eg egg farm in Vietnam and 20K hectares Palm oil in Indonesia to ensure double digit growth trend. Although Palm oil planting would not be completed until 2009 in Indonesia and significant revenue from this investment will only realise after 4-5 yrs later. But existing business in ILF and MPM should able to sustain the revenue and earning growth.
The share is tigthly held, and Chia family is controlling more than 60% of the share hence the share will not drop dramatically. The counter price is steadily increase from RM2.8 to RM4.xx from 1 year ago. Another thing is Chia family still continue to buy share from open market at 4.xx.
Company Background:
QL today is a diversifed resource and agricultural-based group with three core principal activities: Marine Products Manufacturing, Integrated Livestock Farming and Crude Palm Oil Milling.
1. Marine Products Manufacturing
This consists of fully integrated manufacturing processes of surimi (semi-processed raw fish paste), fi shmeal, surimi-based products and deep sea fishing. QL is the largest surimi producer in Asia and also the largest producer of fishmeal and surimi-based products in Malaysia. We are a leading deep sea fishing operator in Malaysia.
2. Integrated Livestock Farming
This consists mainly of animal feed raw material distribution and poultry egg farming. QL is a leading poultry egg producer in Malaysia with egg farms geographically located throughout Peninsular and East Malaysia. QL has a daily egg production of 1.5 million eggs. QL is also a
leading distributor of animal feed raw material such as corn and soybean meal, in Malaysia.
3. Crude Palm Oil Milling
This consists mainly of Crude Palm Oil (CPO) milling and oil palm plantation development. QL has two CPO mills servicing small estates in the vicinity. The mills are located near Tawau and Kunak, Sabah. QL has 20,000 hectares of oil palm development in Eastern Kalimantan, Indonesia and some mature acreage in Sabah.
