QL Resources Berhad has proposed a one-for-two bonus share issuance aimed at rewarding shareholders, according to MIDF Amanah Investment Bank reported today (July 11, Thursday).
MIDF maintained BUY recommendation with an unchanged target price of RM7.25.
The bonus shares, totalling 1.22 billion, are intended to enhance share affordability and trading liquidity, aligning with QLG's strategy to broaden investor participation without impacting market capitalisation. Despite the adjusted share price post-bonus expected between RM3.93 and RM4.33, MIDF anticipates heightened trading volumes and increased shareholder ownership, reflecting confidence in QLG's future growth prospects.
MIDF's positive outlook on QL Resources remains robust, underpinned by the company's strategic market leadership in diversified agriculture sectors and commitment to clean energy projects. The analyst firm affirms QLG's resilience amidst anticipated growth in regional poultry demand and sustained consumer sentiment, reinforcing their BUY stance and theoretical ex-bonus target price of RM4.83.