KUALA LUMPUR (Jan 12): The recently-imposed price ceiling on eggs is expected to have a muted earnings impact on QL Resources Bhd, according to UOB Kay Hian. “Based on our conversation with QL Resources, the ceiling price is slightly below cost of egg production given that feed cost remains high. “This conundrum is likely applicable to its industry peers as well, based on QL Resources’ observation,” he added. “Nevertheless, the central kitchen signals FM’s burgeoning ambitions as the new central kitchen will be able to support an additional 500 new stores (its existing central kitchen can support 300 stores),” he said. At the time of writing, QL Resources gained three sen or 0.6% to RM5, valuing the group at RM12.1 billion.
