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The “Singapore” Flyer of the Week: QAF Limited

singapore flyerThis week’s Singapore Flyer is QAF Limited (SGX: Q01). Its share price surged 3.4% so far for the week to $0.90.

QAF Limited is a multi-industry food company with core businesses in Bakery, Primary Production, and Trading & Logistics. It owns brands such as Gardenia, Cowhead and Farmland. It has operations in Singapore, Malaysia, the Philippines and Australia.

On 28th April 2014, the firm held its Annual General Meeting and announced, on the same day, after completion, that all resolutions had been passed.

Three days earlier, it released its first quarter results. Revenue for the quarter dipped 3% year-on-year to S$243 million. However, net profit surged 11% to S$12.7 million from S$11.5 million, in the previous year.  The slight decline in revenue was due to translation effect of a higher Singapore dollar exchange rate versus the domestic currencies in countries such as Australia and Malaysia. Without the translation effect, all of the business segments achieved increased sales.

The firm is optimistic that it will achieve higher profits in the upcoming second quarter as compared to a year ago. It also expects an “encouraging level of profitability” for the full year of 2014.

QAF is currently trading at a historical PE ratio of 16 and has a dividend yield of 6%.