Teh1986....what we need is consistency and sustainability of the share price...for that we need some genuine investors to get on and stay for a while. Sudden spike on share price not a good scenario
Just read RHB report today. What it says os GCB is worth 3.49 right now based on numbers available for them to crunch. All this without taking into consideration of the production ramp up by the ivory coast and the recently acquired german company. I read between the lines that, there could be earnings surprises amd possibly an upgrade from their 3.49 valuation. What they said is they are being conservative in their earnings projections.
@bizzybone , did i denied Max2838 the right to express his opinion? the answer is no, But since he give many reasons to substantiate his arguments.It is ok and nothing wrong when i pointed out the weak logic behind them. We should encourage more debate in this forum, that is what a forum exists for this purpose;so that investors can have more info and better understanding for their decision making , after all, i could be wrong also.
Nimbus website showing that Schokinag annual turnover is 175mil euros = RM800mil, if annual net profit is 5%, it will contribution RM40mil net profit to GCB.
GCB now is PE13x, after acquisition Schokinag for RM138mil (RM138mil/RM40mil = PE3.45x)
Investortrader88....sure bo bro 3.50 u enough? Later after finalised acquisition of the german company more financial details will be avail. This will prompt research house to up TP again. Nanti u regret lor
Investortrader88....yes, the ivory coast is another impetus for growth. But i wil see that ikpact to be a bit slower cos the plant will only start commisioning come 2021
The most immediate will be the completion of the scher acquisition which is expected to be completed by first q of 2020, which is 3-4 mths away
If the report holds true, i quote” schen is in net cash flow position and annual turnover of EUR175m, which is abt RM800m. Lets say 5% net profit, that will translate into 40m to the bottom line. Of course this calculation is too simple cos along the acquistions, there are also other cost incurred, ie finance cost, capital injection cost and etc. but the end is EPS enhancing.
And must not forget, schen operation is currently constraint by tight capital and higher raw material cost. With the intro of GCB into it, more capital will be injected for operation yo bump up production and garner more market share, and same time GCB in house raw material will provide competitive edge which may improve margins. A scenario of higher turnover and improving margins
Of course these are just the positives ans optimistic scenario. I m sure along the way, market conditions, and other uncontrollable factors will pose risks to GCB’s plan.
However it is, it seems more pros than cons to continue holding GCB. I would say, 3.50 shld be withinn 3 mths time. To be honest, i may be a bit bias in my feeling that, it may go to 4 after more finacial datas avail for schen(if there are positive lah)
Not trying to be biased but I think those who are not on board (and wish to do so) can consider buying on any dips. GCB is gaining recognition internationally.
Once the international big boys decide to come in, imo GCB will trade at a valuation that is more in-line with global peers (currently trades at a discount to peer average).
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MQ Trader 3157 views | 3 d ago
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New IPO: The largest mini-market player and a leading groceries retailer in Malaysia, 99 Speed Mart Retail Holdings Bhd aims to list on the Main Market!
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....
Agjl
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Posted by Agjl > 2019-12-24 10:01 | Report Abuse
Bizzybone....u have been longer than me in GCB.....:)