First American Scientific Corp. (fka FASC)

[TRCPA]

QL Resources OUTPERFORM ?
16 June 2014

http://www.bursamarketplace.com/index.php?ch=44&pg=158&ac=2942&bb=research_article_pdf

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Room to grow in ILF and POA divisions too. Besides the growth prospect seen in MPM division, we are positive on ILF and palm oil activities (POA) divisions as well. For ILF division, we expect to see sales growth driven by better overseas demand for QL’s higher-grade branded eggs as living standards in Indonesia and Vietnam improves. Note that the average egg consumption for a Malaysian is 300 eggs a year; compared to only 80 for
Indonesians and 60 for Vietnamese. POA segment outlook is also good as we expect double digit FFB growth due to its young average age profile of 4–7 years old. Our plantation analyst is also bullish on the sector and expects CPO prices to be higher in CY2014 at RM2,800/MT (+14% YoY).

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