QAF

[Sampling]

Trading halt.
https://links.sgx.com/1.0.0/corporate-an...f16261b3c6

Stay home and stay safe, everyone.

long term shutdown of their australia's facility due to covid?

[Squirrel]

Trading halt.
https://links.sgx.com/1.0.0/corporate-an...f16261b3c6

Stay home and stay safe, everyone.

long term shutdown of their australia's facility due to covid?

Last year Nov 2019, they did call a halt to announce financial results. Perhaps its the same case here? That was significant probably because efforts to diverse Rivalea was part of the financial results announcement.

[Sampling]

Trading halt.
https://links.sgx.com/1.0.0/corporate-an...f16261b3c6

Stay home and stay safe, everyone.

long term shutdown of their australia's facility due to covid?

Last year Nov 2019, they did call a halt to announce financial results. Perhaps its the same case here? That was significant probably because efforts to diverse Rivalea was part of the financial results announcement.

Likely so. Hopefully it's more about someone wanting to buy over the Rivalea business.

[Squirrel]

QAF has released their results! Looks good. Congrats to QAF holders!

https://links.sgx.com/FileOpen/QAF_1H202...eID=626765

[pianist]

i would rather they dun sell and keep their unique strategic primary production stake in rivalea
find it puzzling on one hand the announcement painted a rosy nice business performance for primary production including feeds, livestock and meat processing which is also complementary to their food business on the other hand, they are eager to sell it saying not a good fit
they should keep this asset given that singapore is a small red dot without any farmlands, look at the egg supply panic and over-buliding of urban landscape in sg to the detrimental of extinct agricultural assets in sg

[Ben]

Rivalea is in Australia, so the decision to sell should have no bearing to the agricultural industry in Sgp.

I support the decision to divest Rivalea and concentrate on their core bakery business. I think this is what the management knows best. Also, divesting away a cyclical business will make QAF a stable and consistent business and is good for those who looks forward to a consistent yearly dividends pay out. And if they are successful in selling away Rivalea, I would expect a nice special dividend to shareholders.

As to why paint a rosy picture and yet wanted to sell it away? I thought that’s the logical thing to do in order to get a good price.

[nitro]

Anyone did a valuation on Riverlea?

In 2017 - QAF tried to IPO and list it at a market cap S$224.1m

Based on various assumptions, including a market capitalisation of S$224.1 million for the listing, S$88.8 million raised by selling new shares to the public, and S$21 million from selling current shares, and expenses of S$8 million excluding cash bonus to senior employees, QAF will recognise a gain of S$8.5 million to its equity after the listing of 49 per cent of its interest.

Latest QAF 1H2020 results shows EBITA of S$15m. Assuming FY EBITA (without factoring in taxes) S$25m-S$30m and using conservative PE of 10 during Covid crisis. Will Riverlea fetch S$250m-S$300m?

[nitro]

Anyone did a valuation on Riverlea?

In 2017 - QAF tried to IPO and list it at a market cap S$224.1m

Based on various assumptions, including a market capitalisation of S$224.1 million for the listing, S$88.8 million raised by selling new shares to the public, and S$21 million from selling current shares, and expenses of S$8 million excluding cash bonus to senior employees, QAF will recognise a gain of S$8.5 million to its equity after the listing of 49 per cent of its interest.

Latest QAF 1H2020 results shows EBITA of S$15m. Assuming FY EBITA (without factoring in taxes) S$25m-S$30m and using conservative PE of 10 during Covid crisis. Will Riverlea fetch S$250m-S$300m?

During the 2017 IPO listings

https://www.afr.com/street-talk/rivalea-...101-gzca2g

The documents showed Rivalea had pro forma net debt of $2.5 million as at June 30. If successful, the float would trade at 7.2-times forecast 2017 earnings before, interest, tax depreciation and amortisation. 

[nitro]

Just realized

https://www.drwealth.com/top-10-highest-...nies-2019/

Lin Kejian is the joint managing director with Goh Kian Hwee at QAF. While Goh received remuneration ranging from $2m to $3m,   Lin decided not to receive any remuneration . Lin is the son of Andree Halim, whom the latter had a 68.6% stake in QAF. Andree Halim is a non-executive director and has opted not to receive fees as well .

[pianist]

In any case, if primary production segment rivalea etc were to decouple & removed, the least the qaf board should act is to ask themselves whether accordingly the board composition and fees should also be downsized as well.
As far as I'm aware, with or without the merits or dismerits of primary production segment, qaf has been able to pay out consistent steady dividends of around 5 cents per shares, so imo, its good to keep its already mature primary production for diversification benefits for sg investors who likely never able find a similar fit or offer from other sg listed companies as to able to have a stake in agricultural assets