Latest grinding data indeed showed positive trends of higher cocoa demand. Based on recently announced statistics, grinding in Malaysia rose 18.7% from a year ago to 57,029 tonnes in 4Q 2016, while the data from Cocoa Association of Asia reported a stronger 4Q 2016 grinding number, an increase of 16.9% over Q4 2015. Check out the link at http://www.cocoaasia.org/news20170119.php for more info. GCB may post strong 4Q revenues in the coming financial results which is expected to be out this month.
@ jcpy and @ nick_ck, how if GCB need to sell the grinded cocoa powder follow raw material price. Meaning now cocoa price dropping and GCB selling cocoa powder at lower price too......then the story will be different already
Hi Chua, for cocoa processors like GCB, their profitability is very much depended on the ratio between the input cost (cocoa bean prices) and the combined output price (cocoa butter and powder prices). In other words, the price of cocoa butter and powder is traded independently and quoted as a ratio of the cocoa bean price. Obviously with the falling cocoa bean price, GCB should have better processing margin in terms of higher cost savings, provided that GCB managed to stock up cocoa at lower prices. I also gather that the selling prices of cocoa butter and powder should be holding up well since 4Q 2016 given the strong grinding data due to better market demands. Overall, I hope to see a better 4Q results.
The Group’s revenue of RM 543.5 million for the current quarter ended 31 December 2016 is lower than the revenue in the previous corresponding quarter ended 31 December 2015 of RM 653.8 million. The decrease of 16.9% in turnover is mainly due to decrease in sales volume of cocoa butter and cake. The Group made a profit before tax for the quarter ended 31 December 2016 of RM 6.4 million as compared with the profit before tax of RM 13.3 million in the preceding year corresponding quarter ended 31 December 2015. This is mainly due to higher net loss on foreign exchange, which arising from weakening of Ringgit Malaysia against US Dollar, for preceding year corresponding quarter ended 31 December 2015 as compared to current quarter ended 31 December 2016.
Actually the debt is quite high for this company. And the cocoa price is actually affected by pounds, whereby theresa may is going to invoke the article 50 for a brexit soon Wont buy in any yet even if it is a its very low
Actually the raw cocoa price has dropped significantly. We can say they are actually buying raw cocoa at cheaper price, However, i'm still wondering can they turnaround the Company. Looking forward to the next QR, if still no improvement then say bye bye to them.
Only their PE ratio is acceptable as in fundamental btw lol But yap i think this counter in acceptable because it never has any bad news or rumours. Anyone has idea about their management performance?
Nick good counter. I have waited for more than 2 yrs but always got dividends. Infact all counters are good to enter especially Dnex and Gpacket as well. The market oversold due to war rhetoric between US and North Korea. There will another bull coming due to early election. Already see alot of campaign cash $$$$$ flooding around.
any news from AGM? I don't see any reason why cant deliver a good QR? From the current JBfoods QR, I think GCB will post a stronger QR. Hopefully EPS above 3!!
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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....
kingsuft
11 posts
Posted by kingsuft > 2016-12-23 19:26 | Report Abuse
lol