QAF

Yeah, branding is crucial to this misleading business such as "Enriched" or "healthy" or "high protein" etc. etc. Consumers paid a big premium for such statements. For me, bread is bread is bread. Period.

I'm a little amused with the issue of Superbrands.

Regardless of what we may think of the concept - both as a consumer or as a business entity, I find the views expressed a little extreme.

Personally, paying for your company to be called a 'Superbrand' is no different paying mediacorps to advertise on radio, TV and prints. Isn't it just marketing?

(16-08-2011, 04:29 PM)lonewolf Wrote: Personally, paying for your company to be called a 'Superbrand' is no different paying mediacorps to advertise on radio, TV and prints. Isn't it just marketing?

That's true...just like those articles or appearances on TV for those supposedly outstanding hawker stalls. why do some stalls with recommendations/awards taste so bad or just so-so?

I suppose the difference is that in Print or TV, one would expect a degree of biasness since the ad is obviously supposed to be representative of the company (i.e. only tell the good stuff) whereas being given an award is a recognition of ability (i.e. Someone of authority says it's good therefore it must be).

This is much like we're being taught in school- you scored well because you're intelligent/worked hard.

Obviously, as we see here, reality doesn't work this way. This is a good reminder to always question our assumptions and not hesistate to call a spade a spade.

RBM- You've just confirmed my suspicions that Secret Recipe is overhyped.

It's just the question of vested interest and "putting best foot forward"

A good reminder to apply this to the hype in annual reports

For all the gardenia and bonjour bread lovers, it seems that this stock is finally starting to wake up! QAF has rallied 20+% over the last 3 months, with very unusual volume yesterday and today. Salim group owns <70% of the company, so a privitisation may be improbable. But without the weight of its diary operations in Australia and the disposal of the acquisitions in China, it seems that management is finally getting things right..

They got rid of the diary operations in Australia?
I thought they got pig farms in Australia....

They turned in a neat profit for FY 2011 and pay higher dividend but don't think the volume and price surged because of them since these are old news.

Happy and Vested

(28-03-2012, 01:50 PM)camelking Wrote: They got rid of the diary operations in Australia?
I thought they got pig farms in Australia....

They turned in a neat profit for FY 2011 and pay higher dividend but don't think the volume and price surged because of them since these are old news.

Happy and Vested

Hi camelking,

From pg 147 of AR2010

"In March 2010, the Group’s shareholding interest in Challenge Australian Dairy Pty (“Challenge Dairy”) was decreased from 51% to 49% due to the issuance of new shares by Challenge Dairy to its other shareholder. As a result, Challenge Dairy ceased to be a subsidiary of the Group and was treated as an associate with effect
from that date. In October 2010, the company was placed under voluntary administration and receivership for winding up and liquidation. As a result, it was reclassified to a long term investment as disclosed in Note 24."

I think we've seen the last of the write downs, because there's nothing else left to write down. Hopefully management learnt a good lesson. The pig farms are quite volatile actually, every time a drought hits it goes into a loss and this has happened twice in the last 10 years already.

The bread operations must be very easy to run for managment to have ran around buying all these acqusitions. Accounts for half the revenue but 80% of profits! If i were running the salim group i'll spin off the pig farms and take the bread operations private..

(vested too)

(28-03-2012, 02:24 PM)hkl Wrote:

(28-03-2012, 01:50 PM)camelking Wrote: They got rid of the diary operations in Australia?
I thought they got pig farms in Australia....

They turned in a neat profit for FY 2011 and pay higher dividend but don't think the volume and price surged because of them since these are old news.

Happy and Vested

Hi camelking,

From pg 147 of AR2010

"In March 2010, the Group’s shareholding interest in Challenge Australian Dairy Pty (“Challenge Dairy”) was decreased from 51% to 49% due to the issuance of new shares by Challenge Dairy to its other shareholder. As a result, Challenge Dairy ceased to be a subsidiary of the Group and was treated as an associate with effect
from that date. In October 2010, the company was placed under voluntary administration and receivership for winding up and liquidation. As a result, it was reclassified to a long term investment as disclosed in Note 24."

I think we've seen the last of the write downs, because there's nothing else left to write down. Hopefully management learnt a good lesson. The pig farms are quite volatile actually, every time a drought hits it goes into a loss and this has happened twice in the last 10 years already.

The bread operations must be very easy to run for managment to have ran around buying all these acqusitions. Accounts for half the revenue but 80% of profits! If i were running the salim group i'll spin off the pig farms and take the bread operations private..

(vested too)

Thank you..Never pay much attention to this company myself as it is more or less on autoroam mode..defensive nature of business.
Love the dividend and please do not privatise it

I go to Ben Foods, their staff shop, every fortnight at Jurong Pier Road. Reasonably priced and fresh products. Their fresh meats are very popular. Their brands- Gardenia, Bonjour, Farmland, Cowhead, etc. not bad. Ben foods is a distributor of FMCG's as well. They are one of the biggest exporters of pork in Australia. They have lots of assets in farming in Australia. Turned around only in the past 2 years or so. Got rid, I think of their loss-making China juice making company 2 years ago, which greatly helped. Can read more about them here: http://www.qaf.com.sg/launch.asp

Attached CIMB's report on QAF today. Not rated, which is a good thing!