Case Study - Bursa - QL Resources BhdCase Study - Bursa - QL Resources Bhd
Fundamental and Historical Analysis:
Business Diversification:
Starting as an agribusiness and fisheries company, QL has expanded into the food, retail (FamilyMart), and green energy sectors.
The introduction of FamilyMart in 2016 was a pivotal move, strengthening QL’s presence in the retail and fast-food sectors, making it a key revenue source alongside agribusiness.
Green Energy:
The renewable energy initiative highlights QL’s commitment to sustainable development, making it appealing to ESG (Environment, Social, Governance) investors.
Stable Profitability:
Financial data indicates overall revenue growth, but profit margins (PBT) require attention, especially in FY24 and FY25 Q2.
Key Challenges:
Declining margins in FY25 Q2 and the need to compete in a highly competitive retail market may challenge future performance.
Technical Analysis Based on the Chart:
Main Trend:
The chart indicates a strong upward trend with consistent support lines, signaling investor confidence in QL shares.
Critical Levels:
Major Resistance: RM4.90 – this is a key level that needs to be breached to confirm upward momentum.
Major Support: Uptrend line – a breakdown below this trendline could indicate a reversal in momentum.
Zig-Zag Pattern:
The price correction in a zig-zag pattern is healthy and suggests consolidation before the next significant move.
Trading Strategy:
Wait for a breakout above RM4.90 with high volume as a sign of buyer strength.
Ensure a stop-loss plan below the support trendline to manage risk.
Insights and Recommendations:
Long-Term Growth Potential:
Diversification into green energy and FamilyMart's dominance in the local market provides positive growth prospects.
Risks:
Declining profit margins in future financial reports should be monitored.
If competition in the retail sector intensifies, QL will need to enhance operational efficiency to maintain profitability.
Smart Investment Steps:
Short-Term Investors: Focus on the RM4.90 level and use a "pullback entry" after a breakout.
Long-Term Investors: Focus on the company’s fundamentals, particularly developments in green energy and FamilyMart expansion.
