(GCB) Guan Chong Berhad

Posted by scqua323 > 2015-12-02 16:00 | Report Abuse

It's time to have a re-look at GCB, the 3rd largest cocoa grinder in the world with revenue of over 2 billions.It is showing sign of a strong turn-around in the 3rd quarter,with reported EPS 0f 4.55sen as compared to -2.78sen in the same quarter 2014 and 0.41sen in the 2nd quarter 2015. Before this,it has been struggling with marginal loss/profit in the previous 6 or 7 quarters.In the recent 3rd quarter,it reported revenue of RM708.8 millions & net profit of RM21.4 millions,which represents a profit margin of only abt 3% as compared to the average margin of 8.5% for the years 2010 to 2012.The revenue for the 1st 9 months 2015 is already 1.727 billion. If the company can re-achieve margin of around 8.5% for the next one or two years with the revenue of more than 2 billions,we are talking of profit of at least RM170 millions or EPS of 35sen. THIS COULD BE A GOOD TURN AROUND STORY!

2 people like this.

4 comment(s). Last comment by scqua323 2015-12-07 16:54

scqua323

14 posts

Posted by scqua323 > 2015-12-03 17:31 | Report Abuse

GCB-WA: expiry - 16Feb 2016

SS Chong

1 posts

Posted by SS Chong > 2015-12-03 21:40 | Report Abuse

I bought into Guan Chong Berhad before it was re-branded as GCB. Some how I lost confidence in the management when the company retracted its intention to have parallel listing in SGX. I sold my holding there after.
I still have my skepticism in this company.

scqua323

14 posts

Posted by scqua323 > 2015-12-03 22:49 | Report Abuse

ssChong, good thing that you've sold your GCB shares before it got into the current doldrums. You can get the same shares much cheaper now. Do not let sentiments side-tract your investment decision. The company must have some valid reasons for not going ahead with listing in SGX. JB Foods(JB Cocoa), owned by a close relative of Guan Chong, went ahead and list in SGX at around the same time,and the company did so badly that it had to call for a right issue and then a share consolidation of 3 into 1. So it is actually a blessing in disguise for GCB. Buy now while it's still cheap and wait for the turn-around over the next few quarters.

scqua323

14 posts

Posted by scqua323 > 2015-12-07 16:54 | Report Abuse

GCB-W High volume today, 2.9M done, up to 0.065

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