By YVONNE TAN
QL Resources Bhd, the biggest seafood producer in the country, will open its first food processing plant overseas in Surabaya, Indonesia, which will boost its production by at least 25%.Construction of the RM25mil surimi (fish paste) plant is expected to start by year-end for completion by the first quarter of 2010, said managing director Chia Song Kun.The company currently generates about 20,000 tonnes of surimi annually, which is mainly exported to countries likes Singapore, Japan and South Korea.As much as 37%, or RM100mil, of QL’s marine segment revenue for financial year (FY) ended March 31 came from the sales of surimi.QL has three main businesses – marine, which made up of sales of semi-processed raw fish products (surimi) fish meal and other fish-based food products; feed commodities and livestock farming; and oil palm milling and plantations. For FY08, the three segments contributed 21%, 56% and 23% respectively to the company’s overall revenue.
Chia is confident QL will be able to meet analysts’ projection of a 15% to 20% growth in net profit in FY09, backed by higher prices of surimi, among other things.According to him, surimi currently sold for an average of RM10,000 per tonne globally. “Prices have risen 30% to 50% over the past two years,” he said, adding that he expected prices to remain firm this year.QL has three plants manufacturing fish products locally. “Plans are also underway for another plant to be set up in Sarawak. In this business, demand is always more than supply,” he said.As for its other operations, Chia said plans for an egg production farm in Vietnam was on track. “There is a potential for this business in Vietnam as the market is big and profit margins are attractive.”QL also has 3,000 acres of oil palm estates in Sabah and about 20,000ha in eastern Kalimantan, which should be completely planted by 2011.For FY08, it posted a higher net profit of RM80.8mil, or 36.71 sen per share, on sales of RM1.3bil against a net profit of RM63.2mil, or 28.75 sen per share, on sales of RM1.1bil a year earlier.OSK Research cited softer prices of crude palm oil and higher fuel price affecting QL’s shipping operations as potential risks to the company’s earnings.
