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Overview
Financial Highlight
HeadlinesBusiness Background 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.
  Nepo https://www.sinchew.com.my/20220906/%E4%BF%84%E7%BD%97%E6%96%AF%E4%B8%8D%E6%81%A2%E5%A4%8D%E5%AF%B9%E6%AC%A7%E6%B4%B2%E4%BE%9B%E6%B0%94-%E9%99%A4%E9%9D%9E%E8%A7%A3%E9%99%A4%E5%88%B6%E8%A3%81/ 07/09/2022 6:17 AM Nepo Ha Europe countries deserve it. If your head is not big enough then wondering why you wear so BIG hat. You deserve it. 07/09/2022 6:19 AM Nepo Can buy GCB now at RM 2.33 because all bad news has been reflected in the price. Buy in 08/09/2022 9:21 PM 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 03/10/2022 10:53 AM Nepo This stock is stabilizing. Trend already reverse The worst is over Can buy now @2.09 Date : 7 Nov 22 07/11/2022 11:25 AM 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.. 08/11/2022 9:22 AM 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. 08/11/2022 2:22 PM Nepo @Brutus mind sharing the purpose of your warrant conversion? is it for the purpose of profit taking? 09/11/2022 2:15 PM Brutus @Nepo, the purpose of the warrant conversion is to convert the warrant into mother share @ RM 1.65/share. 09/11/2022 5:31 PM Nepo die, no more bullets already.. now lying flat & waiting to be slaughtered.. 10/11/2022 11:39 AM 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. 16/11/2022 4:43 PM 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 22/11/2022 1:29 PM 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. 22/11/2022 3:36 PM Calvin882 Management may have no choice but to raise the price of its products to counter these factors. 22/11/2022 3:38 PM 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. 24/11/2022 5:38 AM Nepo https://www.rfi.fr/cn/%E9%9D%9E%E6%B4%B2/20221126-%E9%9D%9E%E6%B4%B2%E5%8F%AF%E5%8F%AF%E8%B1%86%E7%9A%84%E5%B8%82%E5%9C%BA%E6%9C%AA%E6%9D%A5%E5%9C%A8%E4%BA%9A%E6%B4%B2 27/11/2022 11:59 AM Fabien _the efficient capital allocator Enjoy the interview https://www.youtube.com/watch?v=9PC6oZYRKss&t=629s 02/01/2023 5:54 PM Integrity. Intelligent. Industrious. 3iii (iiinvestsmart)$â¬Â£Â¥ >>>> Posted by Fabien _the efficient capital allocator > 1 hour ago | Report Abuse Enjoy the interview https://www.youtube.com/watch?v=9PC6oZYRKss&t=629s >>>> Thanks for this video. Guan Chong is not an easy business to run. From the video you can see how the first generations were affected. Today, it has grown big; yet not without its challenges. Look at the amount of debt it has to use to grow this business. The biggest is to hedge the cocoa inventories. Guan Chong has grown its market share as during the 2008 crisis, many European companies in similar business have given or scaled down. In the video, Brandon Tay mentioned a particular company a few times. I think this company mentioned by Brandon Tay is definitely in a business with very strong economic moat; and probably will turn out to be a better business to invest into for the long term. A company with poor economics, managed by the best manager, in the end, the company turns out the winner. Also it is better to own a great company at fair price than to own a fair company at great price. Guan Chong may offer short term trading opportunities at times, but I think I will not be a long term investor in this business (just like many members of his very big family). Just my opinion. KEY STOCK DATA P/E Ratio (TTM) 14.59(12/30/22) EPS (TTM) RM0.16 Market Cap RM2.82 B Shares Outstanding 1.17 B Public Float 397.05 M Yield 2.29%(12/30/22) 02/01/2023 7:51 PM Integrity. Intelligent. Industrious. 3iii (iiinvestsmart)$â¬Â£Â¥ Market price $2.40 per share Market cap RM2.82 B 02/01/2023 7:53 PM Integrity. Intelligent. Industrious. 3iii (iiinvestsmart)$â¬Â£Â¥ 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% 02/01/2023 8:04 PM Integrity. Intelligent. Industrious. 3iii (iiinvestsmart)$â¬Â£Â¥ Historical data 23.11.2011 Price RM 2.510 PE 6.47x DY 3.05% Market cap 802.6m ROE 53% 02/01/2023 8:06 PM firehawk From the buying queue, can be seen that, the price is effectively controlled ..... 06/01/2023 4:57 PM firehawk B2. Comment on material change in profit before tax The Group made a profit before tax for the quarter 31 December 2022 of RM30.6 million as compared with the profit before tax of RM70.2 million in the preceding year corresponding quarter ended 31 December 2021. This is mainly due to reduced margin and higher finance cost due to higher interest rate during current quarter ended 31 December 2022. 28/02/2023 9:10 PM firehawk Profit from operation drops to 50.06m from 78,85m. Financial cost rises to (19.60m) from (8.73m) Tax expense reduced to (10,30m) from (20,13m) 28/02/2023 9:19 PM  | | ||||||||||||||||||||||||||||||||||||||||||||||||
