GUAN CHONG BHD

KLSE (MYR): GCB (5102)

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Last Price

2.75

Today's Change

0.00 (0.00%)

Day's Change

2.73 - 2.76

Trading Volume

453,000

Overview

Market Cap

3,231 Million

NOSH

1,175 Million

Avg Volume (4 weeks)

551,557

4 Weeks Range

2.37 - 2.80

4 Weeks Price Volatility (%)

88.37%

52 Weeks Range

2.02 - 3.05

52 Weeks Price Volatility (%)

70.87%

Previous Close

2.75

Open

2.74

Bid

2.74 x 31,100

Ask

2.75 x 2,000

Day's Range

2.73 - 2.76

Trading Volume

453,000

Financial Highlight

Latest Quarter | Ann. Date

30-Sep-2022 [#3] | 22-Nov-2022

Next QR | Est. Ann. Date

31-Dec-2022 | 21-Feb-2023

T4Q P/E | EY

17.96 | 5.57%

T4Q DY | Payout %

1.79% | 32.13%

T4Q NAPS | P/NAPS

1.30 | 2.11

T4Q NP Margin | ROE

4.11% | 11.74%

Market Buzz
Company Profile

Sector: CONSUMER PRODUCTS & SERVICES

Sector: CONSUMER PRODUCTS & SERVICES

Subsector: FOOD& BEVERAGES

Subsector: FOOD& BEVERAGES

Description:

Guan Chong Bhd is engaged in investment holding, manufacturing, distributing and trading in compound chocolates, chocolate confectionery products, and cakes. The company conducts its business in Malaysia, Singapore, and Indonesia. It also makes industrial chocolates, chocolate beverages, cocoa liquor, cocoa butter, cocoa cake and cocoa powder. The group has cocoa processing plants in Malaysia and Batam, Indonesia, we have also cake grinding plant in the United States. Singapore region generates maximum revenue for the company.

Discussions
11 people like this. Showing 50 of 3,924 comments

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.

2022-08-17 11:22

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

2022-08-17 22:40

dlau8899

2.60, 2.70 ,2.80

2022-08-18 08:32

Nepo

Can this co survive through Europe energy crisis..?

2022-09-06 19:54

Nepo

Europe energy crisis

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

2022-09-07 05:48

Nepo

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

2022-09-07 06:19

Nepo

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

Buy in

2022-09-08 21:21

HowAh

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

2022-09-30 22:04

2Invest

Dear HowAh.

That's very subjective question. Every investors here may have difference thought/action.

My personal view it is a buy call if you have excessive cash. But be ready for the next 2-3 years market turbulent.

Sell if you may need to use $$ that you have invested in the near future before it is too late

2022-10-03 10:53

Nepo

most probably this share will fall below RM2..

2022-10-05 12:02

Nepo

standby to top up at RM 1.65

2022-10-05 12:03

jamestecs

Very good offer, don't bet it.

2022-10-06 11:04

Tangtanggood

Already buy it. Believing on its great potential

2022-10-11 09:21

Nepo

believing is one thing..
buy at super worthy low price is another thing

2022-10-11 10:10

Tangtanggood

@Nepo, you will buy at RM1.65?

2022-10-11 12:29

Nepo

@Tang
Yes going to. hopefully can reach at that price

2022-10-11 14:56

firehawk

Will buy at 1.80 :-)

2022-10-11 15:59

Nepo

omg drop into deep deep deep steep valley.

2022-10-21 08:05

Nepo

Can sb pull me up, in deep shxt hole, help me

2022-10-21 21:52

Nepo

This stock is stabilizing.
Trend already reverse
The worst is over
Can buy now @2.09
Date : 7 Nov 22

2 months ago

Tangtanggood

@Nepo, so cannot buy at RM1.65 ady?

2 months ago

Nepo

@Tangtanggood.
Now waiting for QR
if QR not good, then die lor, stock tumble..
if QR maintain or good, then most probably will hold at current price..
imho..

2 months ago

Brutus

Was very surprised that the WB conversion took only 3 market days to be credited to my account. On the memo it stated 8-10 market days.

2 months ago

Nepo

@Brutus
mind sharing the purpose of your warrant conversion?
is it for the purpose of profit taking?

2 months ago

kingoftradings

warant oredi expired.... when qr good, will fly to the moon

2 months ago

Brutus

@Nepo, the purpose of the warrant conversion is to convert the warrant into mother share @ RM 1.65/share.

2 months ago

Nepo

die, no more bullets already..
now lying flat & waiting to be slaughtered..

2 months ago

firehawk

Going to announce good Q result?

2 months ago

Brutus

Most likely as they will benefit from weak RM-USD exchange. Their 6MFY22 already achieved 63% of FY21 profits. Hoping they will declare another dividend in the Q3 QR.

2 months ago

Nepo

B1. Review of performance
The Group’s revenue of RM1,100.5 million for the current quarter ended 30 September 2022 is higher than the
revenue in the previous corresponding quarter ended 30 September 2021 of RM998.1 million. The increase of
10.3% in turnover is mainly due to improved selling price of cocoa solids and higher sales volume of cocoa butter.
B2. Comment on material change in profit before tax
The Group made a profit before tax for the quarter 30 September 2022 of RM37.5 million as compared with the
profit before tax of RM41.7 million in the preceding year corresponding quarter ended 30 September 2021. This is
mainly due to mark to market currency loss as a result of weakening of MYR against USD and higher finance cost
due to higher interest rate during current quarter ended 30 September 2022. The reduction in profit is also partially
contributed by higher energy cost in Germany.
B3. Commentary of prospects
Energy cost in Q4 2022 is currently on a declining trend in the Western countries, especially in Germany. Besides
that, global freight rates have also lowered down and are close to normalizing. Chocolate consumption still
remains positive despite current high inflationary environment and chocolate demand is expected to maintain
stable growth.
We remain optimistic of our prospect as on top of the above indications, we continued to book in increasing
forward sales of cocoa ingredients for next year. In addition, our Ivory Coast factory has started commissioning
and is expected to run smoothly next year, anticipating additional contribution to our profit in FY2023.
With the higher interest rate, we will carefully look into our financing structure for investment and monitor our
inventory level closely, while working on mitigating the risk of currency exposure. The Group will remain its focus
on the core ingredient processing as well as expansion of the market of better margin industrial chocolate and the
optimization of production according to market conditions

2 months ago

Nepo

Latest QR result look ok and acceptable

2 months ago

Tangtanggood

yup waiting for Ivory branches next year

2 months ago

Calvin882

Forex loss could be more in the current qtr. Increasing USD to MYR badly impacted its finance. Its borrowings may be a burden due to increasing interest rates as well.

2 months ago

Calvin882

Management may have no choice but to raise the price of its products to counter these factors.

2 months ago

Nepo

Guan Chong remains optimistic as it continues to book in increasing forward sales of its cocoa ingredients for the financial year ending December 31, 2023.

This was an indication of the continued resilient demand for cocoa ingredients, supported by recovery in global air travel and tourism, it said.

2 months ago

Nepo

https://www.enanyang.my/node/513100

No worry, latest Germany GDP still ok

2 months ago

Nepo

Buy in

2 months ago

Nepo

Top up @ RM 2.45

1 month ago

Integrity. Intelligent. Industrious. 3iii (iiinvestsmart)$€£¥

>>>>
Posted by Fabien _the efficient capital allocator > 1 hour ago | Report Abuse

Enjoy the interview
https://www.youtube.com/watch?v=9PC6oZYRKss&t=629s

>>>>

Thanks for this video.
Guan Chong is not an easy business to run. From the video you can see how the first generations were affected. Today, it has grown big; yet not without its challenges. Look at the amount of debt it has to use to grow this business. The biggest is to hedge the cocoa inventories. Guan Chong has grown its market share as during the 2008 crisis, many European companies in similar business have given or scaled down.

In the video, Brandon Tay mentioned a particular company a few times. I think this company mentioned by Brandon Tay is definitely in a business with very strong economic moat; and probably will turn out to be a better business to invest into for the long term.

A company with poor economics, managed by the best manager, in the end, the company turns out the winner. Also it is better to own a great company at fair price than to own a fair company at great price.

Guan Chong may offer short term trading opportunities at times, but I think I will not be a long term investor in this business (just like many members of his very big family).

Just my opinion.


KEY STOCK DATA
P/E Ratio (TTM)
14.59(12/30/22)
EPS (TTM)
RM0.16
Market Cap
RM2.82 B
Shares Outstanding
1.17 B
Public Float
397.05 M
Yield
2.29%(12/30/22)

4 weeks ago

Integrity. Intelligent. Industrious. 3iii (iiinvestsmart)$€£¥

Market price $2.40 per share
Market cap RM2.82 B

4 weeks ago

Integrity. Intelligent. Industrious. 3iii (iiinvestsmart)$€£¥

Historical data 2011

Current Price (7/1/2011): 2.49
2009 Sales 642,649,516
Employees: 180
Market Cap: 597,600,000
Shares Outstanding: 240,000,000
Closely Held Shares: 167,840,000


Market cap of Guan Chong was RM 597,6 million in 2011.
Today its market cap is RM2.82 B.

Average Growth Rates Guan Chong Bhd
Past Five Years
Ending 12/31/2021 (Fiscal Year)
Revenue
+16.53%
Net Income
+14.01%
Earnings Per Share
+9.76%
Capital Spending
+50.60%
Gross Margin
+11.45%
Cash Flow
+22.68%

4 weeks ago

Integrity. Intelligent. Industrious. 3iii (iiinvestsmart)$€£¥

Historical data

23.11.2011

Price RM 2.510
PE 6.47x
DY 3.05%
Market cap 802.6m
ROE 53%

4 weeks ago

firehawk

From the buying queue, can be seen that, the price is effectively controlled .....

3 weeks ago

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