Recently, we visited QL’s farms in Cianjur, West Jawa near Bandung which are still under construction and on track for completion. We are impressed with the work progress and statistics show that QL has made the right choice in investing in Indonesia. Upon completion of the farms, QL will become a significant poultry player in Indonesia, particularly in the production of eggs. While Indonesia is progressing well, there is a slight delay in Vietnam which leads us to pare down our forecasts slightly by 1-5%. Despite the strong share price rally recently, we raised our FV to RM4.00 from RM3.51, based on a higher PE of 19x, noting the potential catalyst from its venture into renewable energy and to factor in the higher share liquidity.
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