QAF Ltd. (Q01) AI Stock Analysis

• Market Cap: S$509.11M
• Dividend Yield: 5.65%
• Average Volume (3M): 70.18K
• Price to Earnings (P/E): 19.5
• Beta (1Y): 0.17
• Revenue Growth: -0.51%
• EPS Growth: -25.57%
• Country: SG
• Employees: 9,955
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): <0.01
• Shares Outstanding: 575,268,430
• 10 Day Avg. Volume: 57,930
• 30 Day Avg. Volume: 70,176
• PEG Ratio: 0.53
• Price to Book (P/B): 0.96
• Price to Sales (P/S): 0.76
• P/FCF Ratio: 10.46
• 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: 70 Outperform
• Price Target: S$1.00 ▲(13.64% Upside)

QAF Ltd. scores well due to its strong cash flow management and solid balance sheet, which are significant strengths. The technical indicators suggest a stable market position with a slight upward trend. The valuation is reasonable, with a good dividend yield. However, the declining revenue growth and margins present a risk that needs addressing to improve the overall outlook.

Positive Factors

Cash Flow Management

Strong cash flow management indicates efficient operations and financial health, providing QAF Ltd. with flexibility for investments and debt management.

Balance Sheet Health

A low debt-to-equity ratio suggests low leverage, enhancing financial stability and reducing risk, which supports long-term growth and resilience.

Profit Margins

Sustained profit margins indicate effective cost management and pricing strategies, which are crucial for maintaining profitability despite revenue challenges.

Negative Factors

Revenue Growth Decline

Declining revenue growth can signal market share loss or demand issues, potentially impacting long-term profitability and competitive positioning.

Earnings Decline

A decline in EPS growth reflects reduced profitability, which can affect investor confidence and limit the company's ability to reinvest in growth opportunities.

Operational Challenges

Decreasing EBIT and EBITDA margins suggest rising operational costs or inefficiencies, which could erode profitability and competitiveness if not addressed.

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

QAF Ltd. presents a stable financial position with strong cash flow metrics and a solid balance sheet. However, the declining revenue growth and margins in the income statement highlight potential operational challenges. The company should focus on reversing the revenue decline and improving operational efficiency to enhance profitability.

Income Statement

QAF Ltd. shows a mixed performance in its income statement. The TTM data indicates a decline in revenue growth rate by 25%, which is concerning. However, the company maintains a decent gross profit margin of 41.8% and a net profit margin of 4.1%, indicating some level of profitability. The EBIT and EBITDA margins have decreased over time, reflecting potential operational challenges.

Balance Sheet

The balance sheet of QAF Ltd. is relatively stable with a low debt-to-equity ratio of 0.055 in the TTM period, suggesting low leverage. The return on equity is modest at 5.36%, indicating moderate efficiency in generating profits from shareholders' equity. The equity ratio remains strong, reflecting a solid capital structure.

Cash Flow

QAF Ltd. demonstrates strong cash flow management with significant free cash flow growth of 184.6% in the TTM period. The operating cash flow to net income ratio is healthy at 0.63, and the free cash flow to net income ratio is robust at 0.73, indicating efficient cash generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	632.93M	636.11M	628.59M	577.52M	557.72M	555.09M
Gross Profit	264.61M	302.02M	148.70M	262.65M	264.65M	277.55M
EBITDA	51.60M	73.30M	67.93M	64.66M	60.86M	85.29M
Net Income	26.14M	34.70M	27.48M	19.41M	52.08M	27.74M
Balance Sheet
Total Assets	612.59M	664.28M	669.16M	664.76M	878.16M	868.08M
Cash, Cash Equivalents and Short-Term Investments	188.61M	209.40M	215.68M	216.79M	88.70M	81.36M
Total Debt	26.15M	31.97M	48.92M	41.75M	56.95M	71.33M
Total Liabilities	134.78M	163.24M	180.68M	165.30M	345.83M	351.16M
Stockholders Equity	475.78M	499.68M	486.85M	497.71M	530.55M	516.31M
Cash Flow
Free Cash Flow	47.64M	45.92M	17.87M	25.87M	79.07M	64.78M
Operating Cash Flow	65.71M	65.25M	57.57M	52.45M	109.19M	95.98M
Investing Cash Flow	-12.04M	-13.15M	-33.42M	94.37M	-23.41M	-18.94M
Financing Cash Flow	-46.05M	-50.70M	-22.96M	-52.95M	-72.68M	-33.39M

QAF Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.88
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:Q01, the sentiment is Negative. The current price of 0.88 is below the 20-day moving average (MA) of 0.89, below the 50-day MA of 0.89, and above the 200-day MA of 0.86, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 45.22 is Neutral, neither overbought nor oversold. The STOCH value of 20.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SG:Q01.

QAF Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5JS	74 Outperform	S$516.48M	5.37	8.46%	2.70%	13.03%	35.10%
Q01	70 Outperform	S$509.11M	19.49	5.51%	5.65%	-0.51%	-25.57%
P34	68 Neutral	S$491.98M	13.98	10.03%	3.54%	-4.54%	-35.71%
F03	66 Neutral	S$1.28B	34.15	9.42%	4.66%	13.97%	-49.60%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
MV4	62 Neutral	S$435.19M	5.68	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.