PETALING JAYA, QL Resources Bhd is expected to face a challenging outlook for its financial year ending March 31, 2026 (FY26), as headwinds in its integrated livestock farming and convenience store segments weigh on earnings growth, according to analysts.
Maybank Investment Bank Research (Maybank IB) said the group’s second-quarter performance will likely show weaker profit before tax margins from its livestock segment, following the full removal of egg subsidies on Aug 1.
The subsidies, previously set at 10 sen per egg, were halved on May 1 and removed entirely in August. “So far, the group has only been able to raise average egg prices by five sen each. However, tight industry supply has prevented a decline in volumes,” Maybank IB said.
The research house noted that a stronger ringgit against the US dollar and stable feed prices for corn and soybean may help cushion costs in the livestock business.
Meanwhile, QL’s marine products manufacturing segment is expected to remain the key earnings driver in FY26. Despite challenges from weak fish landings and soft fishmeal demand, demand and pricing for surimi and frozen surimi-based products should stay steady. Its Indonesian surimi plant, currently running at around 20% utilisation, is also expected to ramp up sales through expanded marketing efforts.
On the other hand, the convenience store business faces continued pressure, with low sales per outlet compounded by higher costs from the minimum wage hike, the sales and service tax on leases, and rising utility bills.
In the palm oil and clean-energy division, growth is set to come mainly from renewable energy via its stake in BM Greentech Bhd, driven by new solar and other clean-energy projects. QL also intends to exit the plantation sector by disposing of its last palm oil mill and estate in Sabah.
Looking ahead, Maybank IB said potential upside could come from faster-than-expected capacity growth in surimi or egg production, stronger domestic consumer spending, or higher export demand for marine products.
