Kenanga Research is optimistic that Guan Chong will achieve higher sales volume next year in spite of lower cocoa prices which has dampened the industry outlook. “We believe the sales of cocoa butter will gradually pick up ahead to help fill the new additional total capacity of 200,000 metric tonnes per annum next year.” In a note, the research house further stated that increase in sales volume will help offset the impact from low cocoa prices. While the traditional markets slow down, sales will tap into a growing demand for cocoa-based food and beverage products in the emerging markets. Even though Guan Chong’s nine-month results usually account for 55 percent to 73 percent of its full-year results in the past years, the research house is taking a conservative stance on the company. This is mainly due to sluggish cocoa prices.
The EPS growth rate is super good at 20. the plant at batam is helping the company to post high revenue since 2009. entering the downstream market also helps.
However, the debt of this company though is a bit worrying. gearing is at 235%. 77% of the debts are short term, and 80% of the short term debts are in Trade Loans.
Needs to read the annual report for 2012 to find out whats the plan with the debt before making buy or sell decision.
Current price 1.75 has wiped off all the gains in April/May,not only this all other shares across the board has alrady sold in May and Go Away for the June half yearly closing. Good entry point this level.
US Cocoa price dropped nearly USD120 last Friday,when the market open later this evening there'll be short covering and GCB also move in tandem reacting to cocoa price. You can make good money specializing in this cyclical stock each month.
HDBSVR in today thestar paper says will go down to 1.35,the research team based assumption on the government proposed move to impose a new property tax rate on foreign property owners in Johor that will drag their bottomline. On 9 April 2012,Guan Chong applied for a secondary listing on the Main Board of Singapore Exchange Securities Trading Limited (SGX-ST) bourse. They have a plant in Batam Island as well.
hahaha, don't depend so much on the research made. do your own analysis and look forward, then you will know now is the best time to buy instead of sell.
International cocao price has short up nearly USD130 to short cover previous Friday selldown which is just a winding up position by traders. Chocolate is heavily consumed in the US and the Netherlands where the company exported most. As for cocoa planting Indonesia has large acreage to provide the beans apart from importing. The company's public spread is still very low as the main shareholders cornered nearly 53% of paid up.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
tonylim
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Posted by tonylim > 2012-11-30 23:45 | Report Abuse
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