Here's my summarized version and keytakeaway of the report from CIMB on QAF:
- Defensive consumer staples with a nice dividend yield of $0.05/share (~6.6%).
- Margin pressure from Massimo, a new competitor in the bread industry with inception in 2011.
- Nevertheless, dividends looks to be sustainable.
- Potential catalyst - chances of divestment of the pork production in Australia, which barely break-even.
- Outlook - JV to set up a bakery in China, Fujian. No material impact on the growth trajectory in the near terms.
QAF...