Stronger ringgit boosted Guan Chong Bhd's net profit for the second quarter ended June 30, 2016 (2QFY16) to RM10.66 million, which is over five times the RM1.96 million it had recorded in the same period last year.
The leading cocoa processor in Asia told the stock exchange today that better earnings were due to higher net gain on foreign exchange.
Revenue, on the other hand, only gained 1.2% to RM583.39 million, from 576.56 million a year ago, which is mainly due to higher average selling price of cocoa solids.
The stronger quarterly earnings also lifted its net profit for the cumulative six months ended June 30, 2016 (1HFY16) to RM24.36 million, from RM108,000 a year earlier; while revenue improved 14.7% to RM1.17 billion, from RM1.02 billion.
Guan Chong Berhad is one of the largest cocoa processors in the region, with cocoa bean grinding capacity of 80,000 MT/year in Pasir Gudang, Malaysia, and 120,000 MT/year in Batam, Indonesia. The current total production capacity of 200,000 MT/year makes the Group ranked among the top 5 cocoa ingredients producers in the world.
Established in 1990, Guan Chong has also cocoa cake grinding facility in Delaware, USA, to be close to its key market. Currently, Guan Chong exports more than 90% of its cocoa ingredients of cocoa liquor, cocoa butter, cocoa cake, and cocoa powder to more than 60 countries worldwide. The Group’s products are marketed under the “Favorich” brand.
To date, Guan Chong has an established clientele, including world-famous chocolate makers such as Mars and Hershey’s, as well as a global distribution network of more than 70 distributors/agents in Asia, Europe and USA.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
EWon88
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Posted by EWon88 > 2016-08-12 10:01 | Report Abuse
Undervalue gem