Singapore’s Big Winner for the Week: QAF Limited

This week’s big winner in our Singapore market is QAF Limited  (SGX: Q01), which gained  4.7% for the week to end Friday at S$1.12. This easily triumphs the Straits Times Index’s  (SGX: ^STI) 1.6% decline over the same duration.

QAF is involved in the food industry with core businesses in bakery, primary production, and trading and logistics. It is the firm behind the famous bread brand, Gardenia.

At the end of February, QAF announced its financial results for its fiscal year ended 31 December 2014. Revenue for the year was flat at S$1.02 billion. The bakery segment, which contributed to half of total revenue, grew 3% year-on-year to S$510.7 million. This was on the back of “successful launch of new products, increased production capacities, increased market shares and higher overall selling prices.”

Despite the stagnant top-line, QAF’s net profit surged 49% year-on-year to S$45.1 million as all of the group’s business segments achieved increased profitability.

Shareholders will be receiving a final dividend of S$0.04 per share for the final quarter, bringing the total dividend for 2014 to S$0.05. QAF’s trailing-twelve-months dividend yield stands at 4.5% at its current share price.

Going forward, the firm said that its bakery operations and primary production segment are “expected to achieve sales increases in terms of their respective domestic currencies in the markets that they operate in.” QAF also added that it should be achieving a comparable or better level of profitability for the first quarter ending 31 March 2015 as compared to a year ago, despite some global headwinds.

The company is now trading at a historical price-to-earnings ratio of 14.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Sudhan P doesn’t own shares in any companies mentioned.