QL Resources Berhad (428915-X)
28
Group Managing Director’s Report
(Cont’d.)
With a total of 10,200 planted hectares of oil palm plantation
in Indonesia and Sabah, the upstream production of FFB is
anticipated to rise from the current 80,000 metric tonnes a
year to 120,000 metric tonnes in one year’s time.
POA Outlook Moving Forward
Maturing palm from Indonesia plantation will provide positive
contribution in the coming financial year. We forecast CPO
prices to recover in the coming financial year and to be
between RM2,400 to RM2,600 per metric tonne. This will be
positive for our plantation unit.
However, we anticipate that the El-Nino effect will continue
to adversely affect our Sabah palm oil unit in the first half of
FY2017. Contribution from our associate Boilermech
Holdings Berhad is expected to normalise in FY2017 as a
result of improvement in CPO price.
Overall, POA’s FY2017 outlook is promising.
EXPANDING BEYOND DOWNSTREAM ACTIVITIES
Expanding beyond downstream activities came in the form
of the opportunity to partner with the second largest
convenience store chain in the world, FamilyMart. As a
worldwide leader in convenience store business, the
FamilyMart brand of convenience stores focuses on retailing
convenience products, with emphasis on ready-to-eat food
and beverages, and providing convenience to consumers.
This positioning fits perfectly into the growth plan that we are
charting for QL for the long term.
FamilyMart is a brand that has successfully penetrated
every new market it entered by guiding local partners and
helping to offer the same values synonymous with the brand
in its home base of Japan. QL is confident that this long term
strategy, with a name such as FamilyMart will provide a new
chapter of both excitement and growth for the Group.
