by winston » Tue Aug 16, 2016 9:13 am
not vested
QAF Limited: A strong quarter
QAF reported its 2Q16 results, which has deconsolidated the financial results of Gardenia Bakeries (KL) Sdn Bhd (GBKL) as it is now a 50% held JV entity of the group following the sale of the group’s 20% stake in GBKL as announced in Apr-16.
As such, 2Q16 revenue was 17% lower at S$208.4m. We also saw S$1.81m of share of profits from JV (GBKL). Excluding the one-off gain of S$9.7m from the sale of 20% stake in GBKL, core PATMI still saw an estimated increase of ~56% to S$19.1m, underpinned by improved profitability in Rivalea (primary production segment).
The stock has done well thus far, giving a YTD return of 12.8% vs. STI’s -0.5%. An interim DPS of 1 S-cent has also been declared, similar to last year.
Given the above, coupled with generally favourable feed prices outlook, as well as continued capacity expansion plans, we have raised our estimates upwards, bringing our fair value estimate slightly higher to S$1.33 (previous: S$1.27).
Source: OCBC
It's all about "how much you made when you were right" & "how little you lost when you were wrong"