The Not-So-Enigmatic Success Storey Behind Ql Resources?

CAVEAT:  This is solely MY OWN VIEW, I could live on incorrect here. It is mainly conjecture on my part.

It has been said when y'all wishing to emulate someone, larn from the best. QL Resources, a shining star inwards damage of stock cost performance for the in conclusion xv years, did really good 1 time again inwards 2018 inwards spite of trying conditions. 

 QL was founded inwards 1987, but its roots stretch dorsum to the belatedly 1970s. In those early on years, Dr Chia Song Kun in addition to his brothers harvested the calcium-infused shells of dead mollusks from a remote shoreline close their domicile village, which they supplied to local feed millers. The hard-fought success of this pocket-sized trouble concern allowed them to expand their production gain in addition to opened upwards novel branches across Malaysia. 

 After establishing a heart in addition to soul trouble concern inwards feedstuff trading the companionship grew through adjacency expansion, which led to diversification into nutrient for human consumption. QL instantly operates inwards iii distinct sectors: Integrated Livestock Farming, which includes poultry farming, feedstuff trading in addition to consumer brands; Marine Products Manufacturing, which includes surimi in addition to fishmeal processing in addition to consumer brands; in addition to Palm Oil Activities, which includes milling, plantations in addition to biomass build clean energy.

QL’s strategy involves the deployment of technology, upper-case missive of the alphabet in addition to management expertise into populous emerging markets. Despite novel marketplace position challenges in addition to geopolitical risks, regional expansion inwards following Association of Southeast Asian Nations markets is fuelling QL’s medium in addition to long-term growth.

Dr Chia in addition to his squad pursue a strategy of strengthening in addition to additional integration of QL’s value chain. This provides the companionship amongst to a greater extent than opportunities to add together value, multiplies its mightiness to generate profit, increases efficiency, mitigates the trouble concern wheel jeopardy that frequently affects singular parts of a value chain, in addition to ultimately ensures consistent lineament inwards the in conclusion product. Greater competitive advantages are held over businesses inwards whatever 1 segment of the chain every bit a result.

QL’s marine products manufacturing partitioning is the fastest-growing amid its iii trouble concern divisions. It is involved inwards deep-sea fishing, aquaculture farming, surimi in addition to fishmeal productions. Presently, QL is the largest surimi producer inwards Asia. Over the in conclusion 10 years, QL has achieved a CAGR of 13.59% inwards revenues for this division. It has grown from RM245.4 1 G 1000 inwards 2007 to RM877.1 1 G 1000 inwards 2017.

QL’s livestock farming partitioning remains the biggest revenue contributor to the group. It has grown every bit a number of organic growth in addition to a serial of acquisitions. In 2007, this partitioning was producing 1.5 1 G 1000 eggs a day. In 2017, QL produces 4.6 1 G 1000 eggs a day. It also produces xl 1 G 1000 day-old chicks (DOC) in addition to xx 1 G 1000 broilers in addition to trades over 1 1 G 1000 metric tonnes of beast feed raw materials a year. Over the in conclusion 10 years, QL has achieved a CAGR of 10.50% inwards revenues for this division. It has grown steadily from RM657.2 1 G 1000 inwards 2007 to RM1.78 billion inwards 2017.

QL has achieved a CAGR of 14.04% inwards dividend payouts to its shareholders over the in conclusion 10 years. It has increased from RM14.3 1 G 1000 inwards 2007 to RM53.0 1 G 1000 inwards 2017. QL has maintained an average dividend payout ratio of 24.51% over the in conclusion 10 years. For the fiscal twelvemonth ended 31 March 2017, QL declared 7.25 sen inwards dividend per share. It comprised 3.00 sen inwards particular dividend in addition to a in conclusion single-tier dividend of 4.25 sen. The particular dividend is one-off in addition to declared every bit a token of appreciation to wages its loyal shareholders. As at four September 2017, QL Resources portion cost is trading at RM4.82 a share. Excluding the particular dividend, if QL is able to keep its in conclusion single-tier dividend of 4.25 sen for the fiscal twelvemonth 2018, its expected dividend yield is 0.88%.

As of May 2019, FamilyMart Malaysia opens its' 100th store inwards Melaka, earmarks to opened upwards some other 50 stores inwards FY19 towards their FY22 target of 300 stores. While operations are non expected to recess fifty-fifty inwards FY19, management expects the store chain to travel profitable inwards FY20 from an expected store base of operations of about 120 branches.

Today QL has a coherent, complementary laid of businesses amongst a combined objective: to add together value to our broad, resource-based Group.

• Marine Products Manufacturing Activities

  • We are the largest producer of surimi inwards Asia every bit good every bit the largest fishmeal in addition to surimi-based products manufacturer inwards Malaysia.

• Palm Oil Activities

  • We are the leading independent unsmooth palm stone oil miller inwards Sabah, Malaysia.
  • Own in addition to acquire by a 1,200 HA mature palm stone oil estate, also inwards Sabah.
  • In Eastern Kalimantan, Indonesia, nosotros ain in addition to acquire by a 20,000 HA stone oil palm plantation, of which 5,000 HA are mature.

• Integrated Livestock Farming Activities

• We are 1 of Malaysia’s leading distributors of beast feed raw materials.
• We are also 1 of Malaysia’s leading poultry egg producers, amongst a production charge per unit of measurement of around 3.2 1 G 1000 eggs per day.
• We are a leading integrated broiler producer inwards East Malaysia

So which companionship did Dr Chia Song Kun patterned (emulated)  after? This is solely MY OWN VIEW, I could live on incorrect here. It is mainly conjecture on my part.  Coincidentally, or not, it was later on some other Chia family... but from Thailand. I intend it was to a greater extent than than coincidence that both receive got the same surnames.

To live on fair, QL later on making smashing inroads into the agro-farming, livestock feed, marine farming... did venture into something large which CP did non receive got a natural advantage, i.e. palm oil. The Family Mart venture puts QL dorsum on the CP treasure map (CP own's the 7-11 franchise for Thailand, the best performing of all 7-11 franchises globally).





CP or Charoen Pokphand Group

Key Dates: 
1921: Chia Brothers, from China, fix a seed store inwards Bangkok's Chinatown, in addition to therefore start exporting poultry in addition to pigs to Hong Kong. 
1954: The companionship diversifies into beast feed production in addition to launches a subsidiary, Charoen Pokphand Feedmill. 
1964: Dhanin Chearavanont, boy of 1 of the founders, takes over every bit companionship leader. 
1970: The companionship launches a poultry breeding trouble concern inwards partnership amongst Arbor Acres of the United States. 
1973: The companionship begins exporting poultry to Nippon in addition to becomes 1 of that market's leaders. 
1979: The companionship becomes the kickoff unusual theatre to invest inwards the Chinese market, opening a feed subsidiary inwards the Shenzhen economical merchandise zone. 
1986: The companionship diversifies into shrimp production in addition to becomes the world's leader inwards this market. 
1994: Lotus Supercenter retail network is launched inwards Thailand. 
1998: The companionship restructures every bit a "focused" agribusiness. 
2003: Dhanin Chearavanont is named 1 of Fortune magazine's "World's Most Powerful Business Leaders." 

Textbook Play

This postal service is inwards no means to dilute physician Chia's trouble concern ability, rather, it is to highlight how an academic tin parlay his volume noesis (case studies in addition to query papers) amongst smashing entrepreneurship to convey close smashing businesses.

I am a smashing admirer of physician Chia. I would purpose the words "emulated" or "patterned" in addition to NOT "copied", when referring to QL's achievements. I intend physician Chia is easily Malaysia's best trouble concern individual for the by 50 years.

We all desire to larn from the best. We purchase goodness books on business, nosotros pay for enterprise trouble concern centric magazines in addition to papers - only to improve our noesis in addition to hopefully larn to a greater extent than close trouble concern insights in addition to strategies. physician Chia is a fine instance of learning from the best, parlaying his sharp trouble concern knowledge, in addition to executing really well.


CP In Everything Now

Just how much to a greater extent than tin QL grow? Well, QL has managed to replicate CP's occur ii businesses: Agro-Industry/Food in addition to Retail/Distribution. That has taken a lot of endeavor for QL. We receive got to retrieve CP is therefore much bigger than QL because of its early on mover wages in addition to a domestic population that is almost 3x the size of Malaysia.

Is QL Still Attractive As Influenza A virus subtype H5N1 Stock

Definitely yes. Just receive got a facial expression at its long term portion cost chart. One caveat though, I intend some investors receive got been also exuberant over the Family Mart trouble concern in addition to has pushed its close term valuations on the high side. If I had been belongings QL for to a greater extent than than v years, I would sell 2/3 at electrical flow valuations if non all BUT would definitely facial expression to buyback when earnings start its following moving ridge 0 when Family Marts shows improve cash flows. Now Family Mart is inwards its upper-case missive of the alphabet expenditure phase.

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