Stocks

QAF Limited | Buy

Nov 17 close: S$1.07

Target price: S$1.27

OCBC Investment Research, Nov 17

QAF Limited's (QAF) Q315 revenue was down 5 per cent y-o-y to S$243.2 million due to FX translation effects, while Patmi rose 30 per cent to S$10.5 million. These formed 23 per cent and 21 per cent of our full year estimates for revenue and Patmi, respectively.

Without the translation effect, bakery and primary production business segments continued to see growth in sales, amid broader economic concerns for the group's core markets such as Malaysia and Australia. Notably, better product mix and efficiencies helped increase profitability for the group's bakery operations in Singapore,…