QAF

QAF: 1H14 net profit grew 201% to $9.3m, while revenue was shaved 2% to $253.6m, mainly due to translation effects of a stronger S$ relative to other operating currencies, in particular A$. Otherwise, bakery sales increased through launch of new products and increased market share, while for Rivalea (meat producer segment) saw decline in sales for its low margin meat trading. Meanwhile, bottom line was buoyed by a 4% decrease in material costs and a 20% decrease in other operating expenses, also because of stronger S$. Management is expecting growth trend to continue into 2H14. Interim DPS of 1¢ maintained. QAF is trading at 10.8x annualized 1H14 P/E.