360Capitalist GCB : The Darling of Bursa Malaysia In 2016
1) The raw material Cocoa price dropped from USD3400 to 2860 per MT or 12 %, based on the chart the cocoa price will drop further to USD2400 level. The material cost saving will translate into RM70Mil saving based on last quarter Sales of RM700Mil. http://www.nasdaq.com/markets/cocoa.aspx?timeframe=1y
2) Barry Callebaut to close Thai cocoa plant, cuts Malaysian capacity This will further boost GCB market share in SEA with quarterly sales jumped from RM564mil to RM700mil. Currently, the production is running at full capacity. http://www.reuters.com/article/barry-calle-cocoa-asia-idUSL1N12Z24T20151104
3) Strong USD will further improve the profit margin of GCB as 90% of revenue from export markets.
Based on number of shares issued of 476mil, and annual sales projection of RM 2.8 Billion or RM700mil per Quarter, we should foresee quarterly profit hitting RM100mil / EPS 21 cts for Q1, 2016 or annual profit of RM400mil with EPS per annuam at 80 Cts.
Target Price : RM8.00 within 12 to 18 months. 13/01/2016 17:28
Posted by Gekko > Jan 15, 2016 10:24 AM | Report Abuse
360Capitalist GCB : The Darling of Bursa Malaysia In 2016
1) The raw material Cocoa price dropped from USD3400 to 2860 per MT or 12 %, based on the chart the cocoa price will drop further to USD2400 level. The material cost saving will translate into RM70Mil saving based on last quarter Sales of RM700Mil. http://www.nasdaq.com/markets/cocoa.aspx?timeframe=1y
2) Barry Callebaut to close Thai cocoa plant, cuts Malaysian capacity This will further boost GCB market share in SEA with quarterly sales jumped from RM564mil to RM700mil. Currently, the production is running at full capacity. http://www.reuters.com/article/barry-calle-cocoa-asia-idUSL1N12Z24T20151104
3) Strong USD will further improve the profit margin of GCB as 90% of revenue from export markets.
Based on number of shares issued of 476mil, and annual sales projection of RM 2.8 Billion or RM700mil per Quarter, we should foresee quarterly profit hitting RM100mil / EPS 21 cts for Q1, 2016 or annual profit of RM400mil with EPS per annuam at 80 Cts.
Target Price : RM8.00 within 12 to 18 months. 13/01/2016 17:28
Keep a record first. Later can laugh or worship...c how...
@traderman, good deal for running 2... very rare people would wait from current price until TP8... and even if there is.. is this TP8 attainable within 12-18months?..
haha 360 capital cost price is only 1.35, at current price he still paper earn 21 cent compare people i4 which suffer 2.4k losses now. in chinese we call it up car already
Be cool it's a tug a war. They are not giving up holding above 1.60 to keep the warrant 'alive' So can make short term money. Buy at this level and average down to 1.50
lol, see 2 believe! don't be silly i recommended superman and myeg, both up like crazy, warrants gain about 300%, check back my comments before claiming sheet, ifca too 300%, not gonna brag here
yes, because you only delete comments if the share price no up after your recommendation. superman and myeg move up by operators when sentiment is good, if a newbie call it at the right time, he also think himself a god.
Hot from the pan - Just confirmed Alpha Trader is correct, ' financial position of the company OK, company profit highly dependent on cocoa. GCB can rake in huge profit if make the right call on commodity future contract. Judging from the price trend, the coming quarter results should be extraordinary! Also the weak Ringgit which has caused other export oriented companies to soar - GCB market price has yet to price in the weak ringgit. It's just beginning to be on the radar screen of institutions. Note insiders buying !!!
My 2 cents worth from viewpoints and research gathered from investors. Good things and good news must be shared. So that we can together unveil gems from the noise all over the place. Just like what we would say - watch if you don't want to be in :-)
GCB is another TopGlove in making, huge potential and don't miss the golden opportunity to own more GCB shares.
1) Industry Leader Size does matter, TopGlove is biggest gloves maker in the world while GCB is top 5 cocoa powder grinder with annual capacities of 200,000 metric tonnes. 2) Sales Revenue The Quarterly Sales for both companies is around RM700 million to RM800 million for most recent quarter or with annual sales around RM2.8 Billion. 90% of sales are cater for export markets. The huge sales and volume are key to achieve economy of scale and profitability. 3) Foreign Exchange Gain Strong US$ will be a favorable factor for both companies to improve the profitability via foreign exchange gains. At least we will see strong dollars for 2016/2017, hence these 2 companies will chalk up good profit for 2016/17 as all the sales are denominated in USD. 4) Raw Material Cost (Commodity) Low raw material prices is key driver to boost the profit margin of the company. Rubber/Latex prices had been dropping more than 50%. For GCB, we start to see positive signs with cocoa beans price dropping around 12% from December 2015. This will be major driver to improve the company profit and fat margin. 5) Profit > Spectacular Share Price Performance TopGloves' share price double within 3 months plus from August after results being announced. while GCB share price double within 2 month after quarterly result announced on end November 2015. The key driver for the share prices is Earning Growth.
Top glove market cap 8.6 billion ringgit. GCB market cap 0.75 billion ringgit - room to grow as it pales in comparison with Top Glove. Even 1.5 billion ringgit will cause it's share price to be 3.12 easily. Even if we discount 30% - target price should be 2.18 !!!
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Posted by mfmqqq > 2016-01-14 16:38 | Report Abuse
Write a comment..recommended trading buy..tp2.11....higher profit for 2015....buy..gd luck