GUAN CHONG BHD

KLSE (MYR): GCB (5102)

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Last Price

2.19

Today's Change

-0.03 (1.35%)

Day's Change

2.19 - 2.23

Trading Volume

216,700

Additional Listing


Ann. Date Date Type Units Price View
Discussions
11 people like this. Showing 50 of 3,886 comments

Fabien _the efficient capital allocator

The game changer comes when their processing facility at Ivory Coast commence operation in end 2Q or early 3Q. They would become more vertically integrated, able to drive better cost efficiencies and minimise supply chain risk as they able to source the beans from the origins and have better control of the supply chain. And via SCHOKINAG and establishment of subisi in UK, they would be able to supply directly to UK and Europe.

2022-05-02 20:12

Fabien _the efficient capital allocator

Not forgetting, their annual bean griding capacity exceeding 300,000MT

2022-05-02 20:16

Nepo

Wondering why this stock lost momentum=?

2022-05-06 05:53

ZhuTouBuddy

With ivory coast, the profit margin should be higher, as they can save the freight cost. I'm still positive on the growth, let see how is the EPs for q3, hope that it is promising

2022-05-06 14:56

Nepo

The Star
28 April 22

KUALA LUMPUR: Guan Chong Bhd (GCB) is cautiously optimistic with the company’s near-term prospects as beyond short-term shocks, the year 2022 has shown signs of being an international year of recovery, spurred by loosening pandemic restrictions and newly reopened borders.

Chairman Tan Ah Lai said the group faced another challenging year in financial year 2021 (FY2021) as the protracted COVID-19 pandemic and geopolitical tensions contributed to global inflation and supply chain disruptions.

"We are operating within an undeniably turbulent macroeconomic environment where existing imbalances caused by the COVID-19 pandemic have been exacerbated by the ongoing Russia-Ukraine conflict, creating a knock-on effect on consumer demand, business confidence and the global supply chain.

"Despite the sluggish global economy and logistical challenges, customers’ demand for cocoa-derived ingredients remained strong in 2021, resulting in a good increase in our production capacity and turnover compared to 2020. However, due to the fall in cocoa butter prices, we have recorded lower profitability in 2021,” he said in the FY2021 annual report.

He shared that numerous major events have impacted the cocoa grinding industry since its inception in the 1980s, however, the company had surmounted its previous challenges to rise to the ranks of becoming a leading global cocoa grinder.

Moving forward, Tan said that with chocolate consumption already on an upward trend, the resumption of global travel is likely to drive increased chocolate consumption.

To seize the opportunity of the economic recovery, the group had strengthened its position as a prominent global player in the cocoa supply chain, which saw many of its ongoing initiatives now reaching fruition.

Among them, he said the group’s Ivory Coast phase one factory is approaching completion while the planned construction of a new chocolate producing facility in the United Kingdom is set to conclude in FY2022, and GCB had also successfully enhanced the profitability, operational efficiency and improved utilisation of capacity for its German subsidiary SCHOKINAG.

"Our recent expansion into Europe, known for its high levels of chocolate consumption has placed us in a prime position to capitalise on the strong demand. At the same time, the commencement of cocoa grinding operations at our facility in Ivory Coast will also see us begin to reap the fruits of our ‘close to source’ and ‘close to market’ expansion policies.

"Our newfound ability to source cocoa beans directly will provide us with a shorter bean-to-ingredient cycle compared to our other facilities, mitigate future supply chain risks, and provide us greater control over our production and logistic operations,” he said.

To boost efforts in widening our European footprint, he said the group planned to allocate RM50 million in capital expenditure to upgrade SCHOKINAG’s existing chocolate production lines and set up additional machineries to increase production capacity at the SCHOKINAG plant during 2022.

"With these expansion plans coinciding fortuitously with the expected uptick in global economic growth during FY2022, we remained optimistic in significantly furthering the GCB brand as a key multinational player in the global cocoa and chocolate supply chain in the coming year,” he noted.

Tan said the group's past progressive expansion had now put GCB as the world’s fourth-largest cocoa grinding company, with a total of 277,000 tonnes in annual bean grinding capacity which provides them with both the scale to mitigate against any supply-side shocks and the financial clout to overcome any dips in global demand.

On Europe as a hub for growth in the mid-to-long term, he said the group will continue to expand its presence in Germany and the United Kingdom, while constantly monitoring its investment to adapt to the market trends.

He said that with the planned RM50 million to be invested in upgrading SCHOKINAG’s existing chocolate production lines, its annual industrial chocolate production capacity will increase by 10,000 tonnes.

"Our global expansion strategy, which was planned in the years prior to the pandemic and is coming to fruition, set the stage for a resurgent performance as the world enters the ‘new normal’, securing our place as a key multinational player in the global chocolate supply chain.

"These expansion plans are targeted to be completed by the end of 2022, with the benefits expected to be realised from 2023,” he added. - Bernama

2022-05-08 10:49

investortrader88

I have some tickets at RM2.50.will continue to hold.good luck guys

2022-05-30 19:52

Nepo

B1. Review of performance
The Group’s revenue of RM990.5 million for the current quarter ended 31 March 2022 is higher than the revenue
in the previous corresponding quarter ended 31 March 2021 of RM960.1 million. The increase of 3.17% in
turnover is mainly due to increase in selling price and volume of cocoa solids.
B2. Comment on material change in profit before tax
The Group made a profit before tax for the quarter 31 March 2022 of RM64.6 million as compared with the profit
before tax of RM40.9 million in the preceding year corresponding quarter ended 31 March 2021. This is mainly
due to improved margin, and also contributed by lower production cost achieved through higher production volume
during current quarter ended 31 March 2022.
B3. Commentary of prospects
With international borders reopened for travel and the pandemic behind us, we expect the demand for cocoa
ingredients to grow in tandem with the improved chocolate consumption in developed markets of US and Europe.
However, the ongoing Russia-Ukraine conflict is disrupting the supply of oil and natural gas into Europe, resulting
in high energy cost in Europe and worldwide. On top of this, recent inflationary pressures and interest rate spikes
may also create uncertainty to the economy and affect our business performance.
The container shortage issue has slightly eased off in the second quarter this year as we see reduction in freight
cost lately. This will improve our products’ competitiveness and reduce the impact to our business in the near
future.
We are confident in our long term prospects. The Group will continue to place strong focus on exploring new
markets, especially in the European region for its wide range of cocoa ingredients as well as industrial chocolate,
and optimizing production according to the market conditions.

2022-05-31 08:59

Nepo

Can buy already at RM 2.45
Good luck

2022-06-01 13:01

brian3381

very undervalued!!!!

2022-06-02 10:16

brian3381

should trade above rm3!!!!

2022-06-02 11:40

NoobRookie

Come on GCB!! Break the resistance!!

2022-06-03 09:33

Nepo

I topped up some today.
Is there anyone also bought in ?

2022-06-03 17:49

brian3381

Just hold on saje. Wil go up after consolidation

2022-06-03 19:47

goody99

I did some research during the weekend. Looks like they will get the benefit of their expansion starting next year. Possible its share price will move now. Good luck!

2022-06-07 09:31

NoobRookie

any news?

2022-06-07 11:49

goody99

I am able to read the 2 analyst reports below, the annual report and also the latest QR report.

Here is the summary:
We remain optimistic on Guan Chong’s medium-to-longer term outlook with its future growth underpinned by:
i) EBITDA yield improvement as freight rates gradually ease;
ii) recovery in cocoa butter ASP to be bolstered by demand revival for upmarket chocolates; and
iii) overseas expansion plan.

Guan Chong - Solid Margin Recovery Amid Growing Demand
https://klse.i3investor.com/web/blog/detail/rhbinvest/2022-05-31-story-h1624138662-Guan_Chong_Solid_Margin_Recovery_Amid_Growing_Demand

Guan Chong - An affordable luxury
https://klse.i3investor.com/web/blog/detail/AmInvestResearch/2022-05-31-story-h1624138723-Guan_Chong_An_affordable_luxury

2022-06-07 22:22

Nepo

Buy in NOW @ 2.58
The last chance you can buy the ticket before the ship depart.

Hurry not much time left..

2022-06-08 10:24

MaluNegaraKu

Ship departing to Holland now... Everyone please enjoy the journey

2 months ago

CK

Good Resurt also keep droping.......haiz....

2 months ago

Fabien _the efficient capital allocator

Chocolate is one of the most popular sweet treats on the planet. Global annual sales are nearing $150 billion. As consumers in developing countries acquire more wealth, chocolate consumption is rising along with it. Some estimates point to sales of cocoa products reaching $200 billion per year by the end of the 2020s — representing an average annual growth of about 5%.

As part of the consumer staple sector of the stock market, chocolate isn't the highest growth investment theme out there. However, demand for chocolate and other sweets isn't going away anytime soon. In fact, chocolate sales are still rising as consumers in developing markets join the middle class, and previously out-of-reach products such as chocolate become a more regular part of the grocery shopping list.

2 months ago

MaluNegaraKu

Now seem not about chocolate or not, when the share is in Malaysia, all foreigner fund run away !
We are lead by non honest leader that had zero commitment except for power and money

2 months ago

bzeew

Nice

2 months ago

jamestecs

Come on, show your strength pull down more. Waiting

2 months ago

2Invest

Come on Jamestecs.

Current price is very reasonable already.

Tamak is ok, jangan tamak sangat. LOL

2 months ago

dlau8899

2.35 ,2.45 ,2.55

2 months ago

dlau8899

Break 2.35 , 2.45 , 2.55

2 months ago

dlau8899

Break 2.35, 2.45, 2.55,2.65

2 months ago

dlau8899

Break 2.45 , 2.55, 2.65,2.75

2 months ago

MaluNegaraKu

Break 2.35, 2.25, 2.15, 2.05

2 months ago

VTrade

Malu sehingga jumpa nanti

1 month ago

MaluNegaraKu

2.25 , 2.15, 2.05 and 1.95 ....

1 month ago

Nepo

Headwind already gone. Come and join in the bandwagon @RM 2.25

1 month ago

Ham5ter

easy quarter, easy money. this counter undervalued.. just look at the revenue growth.. Ivory Coast near completion, this counter should be atleast Rm4

1 month ago

Brutus

Solid QR. Waiting for dividend to come in then convert its warrant into mother share.

1 month ago

dlau8899

Gcb break 2.50, 2.60, 2.70

1 month ago

Nepo

Guan Chong stays cautious amid rising inflation, costs
CORPORATE NEWS
Tuesday, 16 Aug 2022

1:22 PM MYT

KUALA LUMPUR: Chocolate as an affordable luxury consumer product is generally considered recession-proof, but the rising inflation and interest rates in the global economy could soften demand for the confectionery, says Guan Chong Bhd.

The cocoa manufacturer said it is staying cautious given the high energy costs in the world's economy while the latest signs of recession could have a bearish effect on chocolate demand.

"We are adopting a cautious outlook on the future prospect and are more cautious on our investment and future plan.

"The group will place focus on expanding the market of high margin industrial chocolate and the optimisation of production according to the market conditions," it said on its future plans.

Guan Chong's guidance comes following a robust result in its second quarter report, which saw revenue jump over a third to RM1.2bil.

The group's net profit was consequently higher at RM44.61mil, 22.59% improved over RM36.39mil in the same quarter last year.

Earnings per share rose to 4.22 sen as compared with 3.51 sen in the comparative quarter.


STARPICKS
Creative ways to save and still have fun
According to the group's filing with Bursa Malaysia, the 36.67% increase in turnover was mainly owing to an increase in the sales volume of cocoa butter as the previously delayed shipments were shipped out during the quarter.

It added that improved selling price for cocoa solids also contributed to the higher revenue.

In light of the performance, the board of directors declared a second interim dividend of two sen per share, going ex on Sept 14, 2022, and payable on Oct 10, 2022.

1 month ago

Fabien _the efficient capital allocator

GCB end the year 2021 @ RM2.80. 1H earnings increased 39.6% y-o-y.

You are getting much better value for money at current prices

1 month ago

dlau8899

2.60, 2.70 ,2.80

1 month ago

Nepo

Can this co survive through Europe energy crisis..?

3 weeks ago

Nepo

Europe energy crisis

https://www.bohaishibei.com/post/76959/

3 weeks ago

Nepo

Ha Europe countries deserve it. If your head is not big enough then wondering why you wear so BIG hat. You deserve it.

3 weeks ago

Nepo

Can buy GCB now at RM 2.33 because all bad news has been reflected in the price.

Buy in

3 weeks ago

HowAh

opps... now 2.19 only.... howah?

21 hours ago

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