[%SCmQ%]
Research by HLIB
BUY  – TP RM8.18

"CVS shining through”

QL’s chalked in 1QFY25 core PATAMI of RM107.4m (+9% QoQ; +16% YoY which came in within estimates. Overall, sales remain fairly steady QoQ and YoY. CVS segment stole the spotlight with revenue increase (+14% QoQ; +22% YoY) and earnings uplift (+48% QoQ; +77% YoY), which was boosted by store expansion and margin improvement. We opine that ILF and MPM will continue to benefit from cost subsidies for Malaysia’s farm products and good fish landing, coupled with the stable demand for surimi-based products. POCE is also expected to perform better with increase in CE project delivery and margin recovery. We look forward to CVS’ further expansion which will contribute positively to the group’s sales. Maintain BUY with unchanged TP of RM8.18 based of 45x PE of FY25 EPS.  

 Analyst:
Syifaa’ Mahsuri Ismail
[%qBWi%]

$KLSE-QL
Research by HLIB
BUY  – TP RM8.18

"CVS shining through”

QL’s chalked in 1QFY25 core PATAMI of RM107.4m (+9% QoQ; +16% YoY which came in within estimates. Overall, sales remain fairly steady QoQ and YoY. CVS segment stole the spotlight with revenue increase (+14% QoQ; +22% YoY) and earnings uplift (+48% QoQ; +77% YoY), which was boosted by store expansion and margin improvement. We opine that ILF and MPM will continue to benefit from cost subsidies for Malaysia’s farm products and good fish landing, coupled with the stable demand for surimi-based products. POCE is also expected to perform better with increase in CE project delivery and margin recovery. We look forward to CVS’ further expansion which will contribute positively to the group’s sales. Maintain BUY with unchanged TP of RM8.18 based of 45x PE of FY25 EPS.  

 Analyst:
Syifaa’ Mahsuri Ismail
syifaa@hlib.hongleong.com.my