QAF

[Tiggerbee]

Some institutions funds probably just want to buy enough shares for portfolio rebalancing on Fri, which was the quadruple witching day for Q2. Share price most likely will retrace back to its previous price levels.

QAF is not the only one that was bought up in the last minute. Look at Guocoland, Swissco and Pacific Radiance. And there were also other stocks that were dumped in the last minutes. Eg. St******, Wing Tai, Boustead etc.

[greengiraffe]

QAF's major swing factor...

Wheat: better days await farmers prepared to wait out flat prices
THE AUSTRALIAN JULY 29, 2015 12:00AM

Sue Neales

Reporter - Rural/Regional Affairs

World wheat supply cushion Source: TheAustralian
Australian wheat growers can ­expect brighter returns next year and beyond if they can be patient and endure flat world prices for the next six months.

That’s the prediction of US-based grains commodities specialist Emily French, who yesterday warned the Australian Grains Industry conference in Melbourne that a big harvest coming out of the Ukraine and the Black Sea would keep wheat prices down.

In addition, Europe and Russia are selling a large oversupply of wheat, equivalent to eight ­million tonnes, left over from last year’s harvest stockpiles. “But what happens after that supply push of the next four to five months?” the Consili Agra chief asked.

“That’s when the market (for high-grade milling wheat) has the potential to get interesting; you have a low-quality harvest ­coming out of the US, drought in Canada, an increase in (lower-grade) feed wheat from the Ukraine and the threat of an El Nino in Australia. I do think that will all start to feed into a potential upside process for wheat; add in a smaller corn crop expected in the US and Europe because of ­recent heatwaves and (wheat ­prices) could explode.”

Dr French said the other big change affecting prices for milling wheat such as the high-quality protein wheats grown by Australia, was the shift in demand for grains in China and India.

In China in particular, where Australian wheat has always had great difficulty getting access, the growing affluence of middle-class consumers is seeing a switch from bread, grains and rice as the major dietary staples toward more meat, pork, dairy and chicken meals.

In turn, this trend is fuelling a massive demand for feed grains, such as corn and feed wheat, to rear more dairy cows, pigs, chickens and beef cattle, which are mostly kept in shed and intensive barns.

Graham Hodges, ANZ’s deputy chief executive said this shift in Chinese food consumption was having a massive impact on Australian agriculture, with the export of hay and other ­fodder to Indonesia and China now worth $300 million annually. “This demand for food for cattle and other animals kept in feedlots is expected to grow at double the rate of world grain production between 2015 and 2024,” Mr Hodges said. “It might be a different market but it will certainly ­impact (positively) on the grain sector.”

GrainCorp chief executive Mark Palmquist said Australia must seize the chance to become China’s preferred supplier of not just wheat and grains but high-quality oils, such as canola, as ­Chinese consumers become more discerning and demanding about their food.

He said GrainCorp had ­noticed a recent trend of Asian customers coming to Australia and wanting to visit the farm where their wheat, noodles, malt barley or canola oil originated, so they could have confidence in the quality and traceability of the product.

“We are also noticing a huge growing trend among global brewers and (vegetable) oil companies wanting to source products from farms that are sustainable,” Mr Palmquist said.

The GrainCorp chief said the future looked bright for the Australian grains industry, as long as the sector was able to become more competitive and efficient in the way grains are handled and transported, a change that will ­require both public and private investment.

“We were disappointed there wasn’t funding for local (country) rail in the federal government’s agricultural white paper,” Mr Palmquist said.

[greengiraffe]

QAF's primary production division could be severely affected by sky high feed prices should El Nino becomes full blown...

http://www.valuebuddies.com/thread-5501-...#pid121362

[punklitez]

Just saw excellent results by QAF. (http://infopub.sgx.com/FileOpen/2Q2016An...eID=417103)

Understood their business after reading this blog (http://heartlandboy.com/qaf-limited-initiation-report/) Quite simple to understand. 

Think results so good, monday will chiong?

[cyclone]

Request for Trading Halt : Pending announcement.

[GFG]

Just saw excellent results by QAF. (http://infopub.sgx.com/FileOpen/2Q2016An...eID=417103)

Understood their business after reading this blog (http://heartlandboy.com/qaf-limited-initiation-report/) Quite simple to understand. 

Think results so good, monday will chiong?

"Understood their business after reading this blog (http://heartlandboy.com/qaf-limited-initiation-report/) Quite simple to understand. "

huh, I know this is an old comment, but I don't get it.... isn't this your own blog?!

[boonsong]

Got word from a mate that the Rivalea IPO is called off, hence trading in QAF is halt.
I dont have a subscription to The Australian, but googled "Rivalea IPO" under News within Google and you will get the headline.

[BlueKelah]

Been going down for a while now whilst market has rallied. Revenue and profits down but still profitable and div yield almost 5%. Worth a look and put on radar Ready for STI 3000!!
https://sg.finance.yahoo.com/news/10-qui...10228.html
10 Quick Things That Investors Should Know About QAF Limited’s Latest Earnings

[karlmarx]

The thing about Salim stocks is that they are usually used to pursue larger self-serving objectives. This majority owner seldom take any of their stocks private, or buyback large blocks of their shares. The only exception is when the target company is deemed to be extremely profitable to the Salim Group, and said target company is selling at a large discount. For example, they bought back large blocks of Indofood (manufacturer of Indomie) during AFC. On the other hand they sold companies they deemed to be less important. During AFC, UIC was sold to Gokongwei. And 19% of QAF was ceded to the Indonesian government to repay debts, which was sold for a 20% discount to last traded price. Just prior to the AFC, it was intended for QAF to issue massive rights to take control of Indofood. But the market crash during AFC scuttled the deal.

The other thing about Salim stocks is that they are usually heavily in debt. See Indofood Agri (the plantation) and Gallant Venture.

The good thing about QAF is that it is owned and run by Andree Halim, who does NOT appear to be closely aligned with the Salim Group, which is headed by his brother Anthony. Andree also is said to be more circumspect but less entrepreneurial, compared to his brother Anthony. This is probably why QAF's debt look manageable now compared to some 10 years ago. And it is therefore also unlikely for QAF to be used (or abused) to serve the interest of the Salim Group in the future.

Highly recommend this book for those interested in Salim/Indonesian companies:
https://books.google.com.sg/books?id=GnK...&q&f=false

[nitro]

Been going down for a while now whilst market has rallied. Revenue and profits down but still profitable and div yield almost 5%. Worth a look and put on radar Ready for STI 3000!!
https://sg.finance.yahoo.com/news/10-qui...10228.html
10 Quick Things That Investors Should Know About QAF Limited’s Latest Earnings

More capital expediture in 2018. Got chance go below $1. The run-up in share price last year was due to Auric being privatised and the Rivalea IPO hype.


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Full Year Unaudited Financial Statements for the Year Ended 31 December 2017 

The Group has embarked on an expansion plan to increase its bakery production in FY 2017 and FY 2018. Including GBKL, the Group has incurred expansion capital expenditure of $67 million in 2017 and is expected to incur a further $116 million in 2018. With the expected completion of the Mindanao and Luzon plants in the Philippines by the end of 2018 and GBKL’s plant in Bukit Kemuning, Selangor by the third quarter ending 30 September 2018, the Group will have a total of 15 bakery plants. 

This will enable the Group to increase its production facilities to meet market demand in these countries and to enjoy better economies of scale. Staff costs, utilities, amortisation and depreciation are expected to increase correspondingly. Going forward in 2019, expansion capital expenditure will be dependent on market conditions and the competitive environment, but is expected to be lower compared with 2017 and 2018. Maintenance expenditure is expected to increase particularly for older facilities of the Group. 

As a concerted response to heightened competition in the bakery business, the Group is expected to continue to incur higher Advertising and Promotion, Distribution and Transportation expenses, particularly in the Philippines and Singapore. The Group also intends to meet competitive challenges by the introduction of new products and variants of existing products. In addition, the Group intends to pursue synergy potential that exist between its distribution arm and the distribution channels of its bakery arm. All these steps will be taken to defend, if not to increase, market share in our key markets as part of the Group’s long-term sustainable growth strategy.