We maintain our MARKET PERFORM rating for QNS. In our view, QNS’s current 2022F/2023F P/E of 11.0x/11.6x looks full given (1) its sizable net profit contributions (19% in 2022F) from the cyclical sugar business that enjoyed abnormally high margins in 2021 and (2) the company’s recent track record of allocating capital to low-return generating businesses such as sugar.

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