OSK Research maintains Buy on QL Resources, RM5.28

OSK Research is maintaining its earnings forecast and Buy recommendation on QL Resources at RM5.28.

The research house said on Wednesday, Oct 6 that following an analyst briefing on Tuesday, “we feel that QL is optimistic on the prospects of the biomass renewable energy industry given Malaysia’s efforts to promote green energy”.

To recap, the group proposed to acquire 40.51% of Boilermech which is primarily involved in the manufacturing and distribution of biomass boilers.

OSK Research said aside from its palm pellet TECHNOLOGY [] which could convert empty fruit bunches (EFB) to palm pellets, the group is also currently running trials on another technology to generate energy from palm effluent for in-house usage.

“Additionally, QL is also exploring into conversion of palm oil waste to energy via gasification. We maintain our earnings forecast and BUY recommendation on QL at RM5.28,” it said.