kokchengkaiGuan Chong’s factories are still running and it is “comfortably” and “sufficiently” covered for the rest of the year, Tay said. But it’s continuously checking with suppliers to ensure deliveries, and also looking for more beans to avoid situations like contract defaults, he said.
21/03/2024 10:02 AM
NepoThen the question is if contract default, how gcb factories going to operate..? It likes saying he also not confirm what future is going to be..
21/03/2024 10:05 AM
8u29songso, the directors, Tay and Hia....make a lot monies liao lor....
21/03/2024 10:10 AM
Nepono enough cocoa, factories cannot run, i.e less chocolate, how to make money..?
21/03/2024 11:23 AM
Fabien _the efficient capital allocatorGCB grinds beans and sell to end consumer (e.g. Hershey). Naturally, high cocoa bean prices will impact their grinding margin.
Unfortunately, cocoa prices may potentially to go higher due to combination of few factors: 1) 60% of cocoa beans came from west africa (Ghana, Ivory Coasts, Nigeria, Cameroon) 2) there has been very little planting in these countries for the last few years. The trees are very old and producing less and less. Also, old trees are sensitive to bad weather and disease. which currently impacting the production yield severely, due to bad weather and prevalent of disease. especially the disease/virus more widespread in Ghana and Ivory Coast.
Low planting also is a structural issue faced by agri farmers all over the world. Poor pay disincentives human labour to invest and involved in agriculture. 3) New regulation from EU on deforestation which means that beans that have been produced in new planted area cannot go into Europe.
Good news is, if you look at GCB balance sheet. Their inventories went up by 75% to RM2.8bil which means GCB had restocked significantly at much lower prices.
Last quarter, they did a record quarterly revenue of RM1.8bil. Highest ever revenue which means the business is growing and they were able to raise higher selling prices.
Let's look at the end consumer Hershey. In their latest 2024 outlook, the company still expects sales to grow 2-3% in 2024 which means demand still robust despite the higher prices.
End of day, weigh your own risk and reward and invest wisely. Cheers!
21/03/2024 11:57 AM
8u29songwoow....never expect so strong...not long ago dropped till 1.5x.....dont be trapped...
21/03/2024 12:27 PM
8u29songEU ?? what about selling of life killing weapons to all over the world !!
AgjlHigh inventory at lower cost mean of they increase the selling price, margins will improve
21/03/2024 1:18 PM
kokchengkaiNepo u telling the key point ,no cocoa factory cannot run so cannot make money ,this is why other factory is going to shut down temporary in the period . but GCB now is they have cocoa and factory keeping running ,and customer forcing to buy ingredient from them although the price is markup more higher and the price is unusual expensive.. now the business is like this ..u buy or not??if u dun buy other ppl wil buy ,or ur cake shop ,cookies factory ,chocolate drinks factory all close ..u wan close or not?hehehe
21/03/2024 1:19 PM
paktua73wow tiba2 jer mencanak? paktua tak sempat nak jump in woor
tut tut come joined paktua swing team.. sent request at tele @swingdarkred73
21/03/2024 2:51 PM
rr88Sold 2.23. See money take money. Chart resistance here.
21/03/2024 4:27 PM
XcalibreGuan Chong hunts for beans amid supply panic
“Everybody is panicking,” Brandon Tay Hoe Lian, chief executive officer of the firm, said in an interview in Kuala Lumpur. Prices are going higher every day, but the beans are not coming, he said. “We not only have to fight for beans, we’re also paying premiums.”
THE GLOBAL SHORTFALL OF BEANS MEAN ITS STARTING TO LIMIT SALES!
IT WILL BE DOUBLE WHAMMY FOR GCB, HIGH COCOA BEAN COST AND LOWER SALES…! RECIPE FOR VERY POOR PERFORMANCE
https://theedgemalaysia.com/node/705339
21/03/2024 10:32 PM
kl_guywhen bad news out , share move up . target 2.70 before coming down.
21/03/2024 11:54 PM
AgjlTake profit. Got in at 1.78 since then keep droping tot its gone case. Past two days offer life line. Quick quick take profit 22%. Thanks
22/03/2024 12:14 AM
Nepo“We are quite skeptical about selling a lot because we’re worried whether the beans will be delivered,” Tay said. “I rather sell the minimum, just in case, as long as my cashflows are healthy. I don’t want to commit to something that I cannot deliver.” ====={{{}}}}===== This sentence worth to ponder..
22/03/2024 5:40 AM
XcalibreCos fund managers are tricking u guys… u guys enter then they sell and make money…
22/03/2024 9:01 AM
XcalibreThen retailers are stucked at high price… while fund managers made profit
22/03/2024 9:02 AM
kokchengkaiAs a normal ikan bilis like u n me when see this shit "world shortage of bean , price cocoa surge historical higher can b more higher " , who going to buy this shit gcb in this period??? But look at the buy rate n volume , who buy it n push the price up??? Which ikan bilis brave to buy this shit after RM 2.0?? Every day they check London cocoa price in investing.com easyly
Bilises must have the discipline to just swim in the designated bilises' price zone
22/03/2024 9:29 AM
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22/03/2024 9:31 AM
BursinoI first ventured into Guan Chong at about 0.70 in 2011. I am still trading within the 1.70 - 2.50 band. Handsomely rewarded. I can say the management team are decent people. Non predatory. They grow their business the organic way. Like any other businesses, there are good times and bad times.
22/03/2024 9:39 AM
Nepo@Bursino, as a experience veteran Gcb shareholder, could you share your taught about recent surge @ today price RM 2.20? Is it the time to buy, sell or hold?
Fabien _the efficient capital allocatorWith cocoa beans prices at historically all time high and supply deficits anticipated to worsen until next year, many cocoa processing plants have stopped or reduced processing as they can't afford to buy beans at high premium or unable to secure supply. Cocoa market has turned into a SELLER'S MARKET.
GCB will gain pricing power in this seller's market. There was time lag in cost pass through. This financial year, expect to see higher combined ratio and margin expansion to more than offset higher finance costs. As mentioned previously, GCB inventories increased by 75% to RM2.8billion, sufficient supply for the year. This is unprecedented times indeed, and GCB is in good position to gain more footprint and expand their market share.
I would not be surprised, if they can double their earnings in FY2024.
GoldbergCocoa is more expensive than copper as it tops US$9,000 By Dayanne Sousa & Megan Durisin / Bloomberg 26 Mar 2024, 10:31 am
26/03/2024 2:00 PM
speakupCocoa price up, GCB use cocoa as raw product should go down. But it go up
26/03/2024 2:32 PM
heesing62Economic 101. When raw product (cocoa) is short , thus demand exceeded supply. Price goes up. When cocoa short and at high price, down stream activities will need to pay higher in order to get the cocoa products from GCB. Similar during Covid, glove manufacturers enjoying super normal profits. Glove counters (listed) all hitting historic high. But please be cautious as this not sustainable in the long run once things normalise.
26/03/2024 8:54 PM
SCM2023Any reason to buy GCB? They are facing cocoa shortage which directly impact their earnings. Do they own any cocoa farm? I find no reason to buy this counter & this is just my personal opinion