QAF Ltd. (Q01) AI Stock Analysis

• Market Cap: S$558.01M
• Dividend Yield: 5.62%
• Average Volume (3M): 70.18K
• Price to Earnings (P/E): 12.9
• Beta (1Y): 0.19
• Revenue Growth: -0.51%
• EPS Growth: -25.57%
• Country: SG
• Employees: 9,955
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 0.06
• Shares Outstanding: 575,268,430
• 10 Day Avg. Volume: 57,930
• 30 Day Avg. Volume: 70,176
• PEG Ratio: 0.87
• Price to Book (P/B): 1.01
• Price to Sales (P/S): 0.81
• P/FCF Ratio: 12.39
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: S$1.00 ▲(11.11% Upside)
• Action: Reiterated Date: 02/25/26
• Date: Action: Reiterated 02/25/26

The score is driven primarily by a strong, low-debt balance sheet and generally stable operations, tempered by margin and free-cash-flow volatility. Technicals are supportive with an established uptrend and positive momentum indicators. Valuation is reasonable with a solid dividend yield, adding to the overall attractiveness.

Positive Factors

Conservative balance sheet / low leverage

A very low debt burden and a large equity base improve resilience to demand shocks, reduce interest cost risk, and preserve financial flexibility. This durable strength supports consistent dividend policy, capacity for opportunistic M&A or investment, and lower refinancing risk over months.

Consistent operating cash generation

Reliable operating cash generation underpins internal funding for capex, working capital and dividends without heavy reliance on external finance. Over 2–6 months this cash profile supports steady operations, modest reinvestment, and cushions cyclical pressures in packaged foods.

Stable revenues and steady operating profits

A steady top line and stable operating profits indicate enduring market demand and operational control in packaged foods. This predictability supports planning, preserves scale economics, and provides a platform for margin recovery or gradual growth without depending on one-off gains.

Negative Factors

Margin and gross profit volatility

Material swings in gross profit and margins reduce visibility into sustainable profitability and make earnings forecasting difficult. Over several months this heightens risk to dividend consistency and capital allocation, requiring management to stabilize cost or pricing structures.

Volatile free cash flow / inconsistent cash conversion

Inconsistent conversion of earnings to free cash flow undermines the reliability of internally funded investment and shareholder returns. This volatility can force greater reliance on reserves or debt in weaker periods and complicates multi-quarter capital planning.

Moderate ROE and uneven net income trends

Modest ROE signals limited capital efficiency versus higher-return peers, constraining long-term shareholder value creation. Coupled with uneven net income, it suggests structural limits on profitability unless productivity or margin profile improves over the medium term.

QAF Ltd. Business Overview & Revenue Model

Company Description

QAF Limited, an investment holding company, engages in the manufacture and distribution of bread, bakery, and confectionery products in Singapore, Australia, the Philippines, Malaysia, and internationally. It operates through Bakery, Distribution and Warehousing, and Investments and Others segments. The company is also involved in the trading and distribution of food and beverage products; and provision for warehousing logistics services of food items. In addition, it operates as a purchasing agent for bread, confectionery, and bakery products; manufactures kaya and related products; produces, processing, and wholesales pig meat; operates cold storage warehouse; trades in food products; and offers various bread spreads under the Delicia, Cowhead, and Auntie Rosie's brand names. The company was formerly known as Ben and Company Limited and changed its name to QAF Limited in 1984. QAF Limited was founded in 1950 and is based in Singapore.

How the Company Makes Money

QAF Ltd. generates revenue through multiple streams, primarily from the sale of its food products across various segments. The company profits from its bakery division, which includes bread and pastry products, as well as its dairy segment, which encompasses milk and other dairy-based items. Additionally, the processed meats division contributes significantly to the revenue, supplying both retail and foodservice channels. Key revenue streams are bolstered by strategic partnerships with retailers, distributors, and foodservice operators, which enhance market reach. Furthermore, QAF Ltd. benefits from cost management initiatives and economies of scale, improving margins and overall profitability.

QAF Ltd. Financial Statement Overview

Summary

Strong, conservatively financed balance sheet (low leverage, stable assets/equity) supports resilience. Income statement is fairly steady with modest recent revenue growth, but margin/gross profit volatility and uneven net income limit the upside. Cash flow is positive but free cash flow has been volatile and cash conversion inconsistent.

Income Statement

Revenue has been broadly stable with modest growth recently (2025 up 10.5% vs. 2024 up ~1.2%), supporting a steady earnings base. Profitability is mixed: operating profit and EBITDA have held relatively steady, but margins and gross profit show volatility across years (notably the sharp gross profit swing between 2024 and 2025), and net income has not consistently expanded (2021 was meaningfully higher than subsequent years). Overall, the income statement reflects decent stability with some margin/quality-of-earnings variability.

Balance Sheet

The balance sheet appears conservatively financed, with low leverage (debt-to-equity around ~6%–10% in recent years) and a large equity base relative to total debt. Total assets and equity are fairly steady year to year, suggesting a stable capital structure. Returns on equity are moderate (roughly mid-single-digits to high-single-digits recently), which is a mild weakness versus the otherwise strong balance sheet profile.

Cash Flow

Operating cash flow is consistently positive, and free cash flow is positive each year shown, indicating the core business is cash-generative. However, cash conversion is uneven: free cash flow relative to net income varies materially (stronger in 2021/2024, weaker in 2022–2023), and free cash flow growth is volatile (declines in 2022, 2023, and 2025). Overall, cash flow quality is acceptable but less consistent than the balance sheet strength.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	632.93M	633.60M	636.11M	628.59M	577.52M	557.72M
Gross Profit	264.61M	141.72M	302.02M	148.70M	262.65M	264.65M
EBITDA	51.60M	62.48M	73.30M	67.93M	64.66M	60.86M
Net Income	26.14M	39.84M	34.70M	27.48M	19.41M	52.08M
Balance Sheet
Total Assets	612.59M	668.63M	664.28M	669.16M	664.76M	878.16M
Cash, Cash Equivalents and Short-Term Investments	188.61M	214.06M	209.40M	215.68M	216.79M	88.70M
Total Debt	26.15M	39.21M	31.97M	48.92M	41.75M	56.95M
Total Liabilities	134.78M	156.32M	163.24M	180.68M	165.30M	345.83M
Stockholders Equity	475.78M	510.29M	499.68M	486.85M	497.71M	530.55M
Cash Flow
Free Cash Flow	47.64M	41.57M	45.92M	17.87M	25.87M	79.07M
Operating Cash Flow	65.71M	59.36M	65.25M	57.57M	52.45M	109.19M
Investing Cash Flow	-12.04M	-17.02M	-13.15M	-33.42M	94.37M	-23.41M
Financing Cash Flow	-46.05M	-39.26M	-50.70M	-22.96M	-52.95M	-72.68M

QAF Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.90
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:Q01, the sentiment is Neutral. The current price of 0.9 is below the 20-day moving average (MA) of 1.00, below the 50-day MA of 0.96, and above the 200-day MA of 0.90, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 42.95 is Neutral, neither overbought nor oversold. The STOCH value of 8.33 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SG:Q01.

QAF Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Q01	73 Outperform	S$558.01M	12.92	5.51%	5.62%	-0.51%	-25.57%
P34	72 Outperform	S$598.93M	11.33	10.03%	3.56%	-4.54%	-35.71%
5JS	68 Neutral	S$516.48M	5.12	8.46%	2.67%	13.03%	35.10%
F03	67 Neutral	S$1.67B	27.90	9.42%	4.60%	13.97%	-49.60%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
MV4	54 Neutral	S$465.21M	6.21	7.17%	2.72%	47.72%	16.14%

QAF Ltd. Corporate Events

QAF Ltd. Announces Shareholding Transfer and Revised Agreement for Gardenia Bakeries

QAF Ltd. announced that its joint venture partner, Padiberas Nasional Berhad (BERNAS), will transfer its 50% shareholding in Gardenia Bakeries (KL) Sdn Bhd (GBKL) to Tradewinds (M) Berhad as part of an internal restructuring. The transfer has received Malaysian regulatory approval, and the revised shareholders’ agreement clarifies that GBKL is not required to be wound up if listing objectives are not met by March 2028. This allows GBKL to continue operations, focusing on long-term value creation. Consequently, QAF Ltd. has recalculated its investment valuation in GBKL, resulting in a non-cash reversal of approximately S$10.6 million from previous impairment adjustments.

The most recent analyst rating on (SG:Q01) stock is a Buy with a S$1.00 price target. To see the full list of analyst forecasts on QAF Ltd. stock, see the SG:Q01 Stock Forecast page.