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Hot stock: QAF rises in active trade
QAF Ltd - known for its Gardenia brand of bread - rose more than one per cent on Friday in active trade, leading the top 20 in value traded on the Singapore Exchange.
The typically lightly traded stock saw a staggering 57 million-plus shares changing hands. By 2.26 pm, some 57.5 million shares were traded. QAF was trading around S$1.24 a share, up one cent, or 0.81 per cent.
QAF, which is also the largest producer of pork in Australia, saw its net profit for the second quarter ended June 30, 2016 more than double to S$28.8 million, from S$12.2 million, due to the one-off exceptional gain from the sale of its 20 per cent stake in Gardenia Bakeries (KL) Sdn Bhd (GKBL). Revenue fell 17 per cent to S$208.4 million, from S$252.5 million.
The group is in the midst of determining the fair value of its remaining 50 per cent stake in GKBL. In the event where the fair value is higher than the carrying value of the 50 per cent stake in GBKL, QAF will recognise the excess as a gain in the income statement. Subsequently, the resultant carrying value of the joint venture will be subjected to a yearly impairment review.
QAF is expecting to perform satisfactorily for the third quarter of 2016.