Posted by Nepo > 2023-09-04 08:36 | Report Abuse

This stock you need to have holding power.
die die hold until the day the sun shines
one day it will
but when..?

Posted by Nepo > 2023-09-06 14:10 | Report Abuse

https://theedgemalaysia.com/node/681460

Posted by kl_guy > 2023-09-08 11:59 | Report Abuse

buy on rumor sell on fact....buy now and wait for next earning report . december xmas sales will boost sales of choc . patient will reward when time come.

Posted by punpipi > 2023-09-15 10:42 | Report Abuse

next earning may not as expectation, cocoa raw price hike to history high due to bad weather and drop 20% harvest. could impact on this.

Posted by Maxlim2000 > 2023-09-19 18:05 | Report Abuse

wow........nice rally

Posted by speakup > 2023-09-19 21:22 | Report Abuse

aneh, raw cocoa price up but this Guan Chong up? guess they use artificial cocoa not natural cocoa that's why no impact

Posted by Integrity. Intelligent. Industrious. 3iii (iiinvestsmart)$€£¥ > 2023-09-19 21:26 | Report Abuse

I recalled Guan Chong stocks up cocoa with each order they received. They did benefit when the price of cocoa goes up in the past too.

Posted by Integrity. Intelligent. Industrious. 3iii (iiinvestsmart)$€£¥ > 2023-09-19 21:31 | Report Abuse

Dec 2022

Raw Materials 1,092 million

Posted by Nepo > 2023-10-19 13:35 | Report Abuse

Guan Chong Bhd - Pure Cocoa Delight

rakutentrade
Publish date: Fri, 06 Oct 2023, 09:20 AM
Guan Chong’s (GCB, Stock code: 5102) business activities primarily comprise of the manufacturing of cocoa-derived food ingredients and a full range of chocolates and couvertures. The company’s cocoa products are marketed under the “Favorich” brand. While cocoa prices, the primary ingredient for GCB are on the rise in 1HFY23, cocoa butter selling prices will also increase, albeit at a slower rate. Therefore, we expect GCB’s core net earnings to stay flat at RM127.9m for FY23. As cocoa price has seen a reversal since mid-September, we expect FY24 earnings to improve by 43.2% to RM183.1m. BUY with TP of RM2.81 based on 18x PER (3 years average) over FY24 EPS.

GCB has a cocoa bean grinding capacity of 337k MT per annum. Additionally, GCB’s value-added and industrial chocolate capacity are at 99k MT and 95k MT per annum respectively. In 2QFY23, the company has added 16k MT industrial chocolate production capacity in Suffolk, UK. The UK plant is strategically located close to the port of Felixstowe, allowing convenient transportation.

The company has expanded into Ivory Coast, the world's largest cocoa bean supplying country as this will improve GCB’s cost-effectiveness in reaching out to key chocolate-consuming countries in Europe, where most of its customers are based. The setting up of a grinding facility in Ivory Coast will also benefit GCB in terms of duty-free and quota-free of goods exported to Europe, as well as five years of zero corporate tax.

The first phase 60k MT cocoa bean grinding in Ivory Coast is already running at optimal utilisation. The company will allocate 40% of grinding capacity to supply cocoa ingredients to their German industrial chocolate subsidiary, SCHOKINAG-Schokolade-Industrie GmbH (SCHOKINAG), to produce premium quality chocolate ingredients to meet the demand of the European market.

We are cautious on GCB’s financial leverage as its net gearing has reached almost 0.9x with interest coverage ratio of 2.1x. According to the management, more than 2/3 of the borrowings are in US$ or other foreign currencies, which act as a natural hedge against US$ receivables and inventory. Though the company does not have a fixed dividend policy, we expect GCB to pay dividend of 2.7sen and 3.9sen for FY23 and FY24 based on 25% payout ratio. This will translate into yields of 1.2% and 1.8% respectively.

Posted by Nepo > 2023-10-20 12:42 | Report Abuse

share price water fall..can you figure out what is going on?
hopefully not regarding bad QR result..

Posted by Nepo > 2023-11-28 10:34 | Report Abuse

B1. Review of performance
The Group’s revenue of RM1,285.9 million for the current quarter ended 30 September 2023 is higher than the
revenue in the previous corresponding quarter ended 30 September 2022 of RM1,100.5 million. The increase of
16.85% in turnover is mainly due to higher selling price for cocoa butter, cocoa solids and industrial chocolate.
B2. Comment on material change in profit before tax
The Group made a profit before tax for the quarter 30 September 2023 of RM41.6 million as compared with the
profit before tax of RM37.5 million in the preceding year corresponding quarter ended 30 September 2022. This is
mainly due to higher selling price in cocoa products and industrial chocolate. However, the increase offset against
the higher finance cost due to higher interest rate during current quarter ended 30 September 2023.
B3. Commentary of prospects
The cocoa industry has endured challenges in the global macro environment this year, influenced by factors such
as rising interest rates and global inflation. Besides, the El Niño weather phenomenon, black pod diseases and
swollen shoot virus have contributed to reduced supply, thereby resulting in the rally of cocoa prices.
Despite the challenging backdrop, and even as cocoa prices in the London market reached a record 46-year high,
the demand for chocolate products remains resilient. The Group continues to vigilantly monitor global
developments and adapt its growth strategy accordingly for the long-term sustainability of the business. The Group
foresees that these adverse market conditions are affecting its performance in the short term; nevertheless, it
maintains optimism about the long-term outlook.
Looking ahead, the Group will maintain its focus on its core business of cocoa ingredient processing while also
expanding into the higher-margin industrial chocolate market and optimizing production based on market
conditions.
B4. Profit forecast or profit g

Posted by Nepo > 2023-11-28 19:25 | Report Abuse

https://www.klsescreener.com/v2/news/view/1239853

Posted by Nepo > 2023-11-28 19:27 | Report Abuse

The current share price level provides a good entry level, given Guan Chong’s global consumer footprint, and position for potential peaking of cocoa bean prices, as well as to reap the benefits from Guan Chong’s various overseas expansions,” the research house added.

RHB said Guan Chong’s 9MFY2023 revenue of RM3.5 billion (up 7.9% y-o-y) led to the underperformance in core earnings of RM85.8 million at only 50% and 55% of the house’s and the consensus full-year estimates.

However, Guan Ghong’s Germany-based unit Schokinag reported stellar numbers, with a 7.8 times growth in the earnings before interest, taxes, depreciation and amortisation (Ebitda) level to RM70.2 million, thanks to higher average selling prices and lower utility cost.

Meanwhile, Guan Chong’s core earnings of RM33.9 million for the third quarter ended Sept 30, 2023 (3QFY2023), up 10.1% y-o-y on margin recovery for its industrial chocolate operations, was partially offset by higher interest costs (up 152% y-o-y

Posted by Nevets > 2023-11-29 10:02 | Report Abuse

Thank you for sharing Nepo.
I have been trading on GCB, this share has potential.

As of 17 November 2023, EPF have been continuously acquiring and total held share unit is 65,009,800.

Posted by 8u29song > 2023-11-29 12:11 | Report Abuse

golden chance

Posted by Nepo > 2023-11-29 12:35 | Report Abuse

I also want to top up.
but I believe now is NOT the right time to collect because of the heavy selloff (RM1.88)..let the dust settle down for a while.
Good thing about this co is having a growth prospect
Bad thing is too much loan, financial risk is somewhat risky..:-



Loan as at 30/9/2023 is RM 2,072,354,000




Loan as at 31/12/2022 was RM 1,160,754,000

Interest for the current QR (7/23-9/23) is RM 35,331,000
Interest for the preceding QR (4/23-6/23) was RM 14,001,000

Loan & interest almost up by double
Need to monitor its loan repayment ability closely..lesson learnt from Bumi Armada..

Posted by calvintaneng > 2023-11-29 12:42 | Report Abuse

If you like GuanChong Cocoa

Then can consider this One

https://www.tsh.com.my/other-businesses/

Posted by jamestecs > 2023-11-29 15:02 | Report Abuse

drop more, buy more, that it. Sell more pls.

Posted by satt1984 > 2023-11-29 15:04 | Report Abuse

tsh no more selling cocoa for almost 1 year liao

Posted by 8u29song > 2023-11-29 16:43 | Report Abuse

got some at 183

Posted by 8u29song > 2023-11-29 16:54 | Report Abuse

what a surprise closing....

Posted by Calvin882 > 2023-11-29 17:08 | Report Abuse

It's a roller coaster day

Posted by hhhiii123 > 2023-11-29 17:40 | Report Abuse

Damn, should topup...

Posted by Nepo > 2023-11-30 11:18 | Report Abuse

Don't worry
if you like it and worried of fomc, then now can buy RM1.88.....
but if today still like yesterday last min eat up..then most probably sb is facing share margin call up...
for me, to maintain sufficient cash bullet is primarily impt..and will not collect any if no confident to do so..
bad luck to involve in this counter..😂

Posted by Nepo > 2023-11-30 11:21 | Report Abuse

Few years later I look back, most probably I have to thank my past action to collect in this counter..

Posted by 8u29song > 2023-11-30 15:56 | Report Abuse

na na na now can top up...

Posted by 8u29song > 2023-11-30 16:53 | Report Abuse

not bad....don't worry the guardian will be there every day

Posted by 8u29song > 2023-11-30 16:56 | Report Abuse

today is PChem to perform the eat up....7.09 > 7.22

Posted by pinnaclegrade > 2023-11-30 22:50 | Report Abuse

Buy Hershey way better ... market leader in US (Wide MOAT), high ROE & ROIC, healthy balance sheet & +ve FCF

Posted by Nepo > 2023-12-04 13:30 | Report Abuse

Nibble some @ RM 1.85, seem like current supporting is at RM 1.8x..
At the same time standby some cash to add in if drop further

Posted by Nepo > 2023-12-04 15:49 | Report Abuse

Need to closely monitor whether EPF and Mr TayHoeLian continuosly buy in or not..

Posted by Nepo > 2023-12-05 08:09 | Report Abuse

Guan Chong launches UK industrial chocolate plant with 16,000 tonne capacity
TheStar Mon, Dec 04, 2023 01:20pm -

https://www.klsescreener.com/v2/news/view/1243125

Posted by Nepo > 2023-12-05 08:36 | Report Abuse

UALA LUMPUR: Guan Chong Bhd (GCB) has commenced operations of its industrial chocolate factory in the United Kingdom (UK), second in Europe, and is targeting the £2.2bil chocolate market in the country.

“To capitalise on the UK’s growing chocolate demand, GCB has invested about £34mil to set up the 16,000-tonne annual capacity industrial chocolate facility,” the world’s fourth largest cocoa grinder and industrial chocolate player said in a statement.

GCB said the facility is installed with state-of-the-art production machinery and is specially designed with production lines to produce dark and milk chocolates with high safety and quality standards.

Managing director and CEO Brandon Tay Hoe Lian said the UK is one of the largest chocolate-consuming countries in Europe, with an average consumption of 8.1 kg per capita.

“By positioning ourselves in the UK, we hope to be a formidable chocolate manufacturer thereby capitalising on the strong demand for chocolate.”

“With the current installation of machinery, the facility still has additional space for us to possibly increase the capacity. For now, we will focus on fine-tuning the facility and evaluate our prospects for future growth,” Tay said.

The facility will produce various types of industrial chocolates such as chips, chunks, buttons, curls, shavings and more.

Future expansion plans for the UK industrial chocolate facility will also include value-added

capabilities in cocoa liquor melting, cocoa butter melting, and cocoa cake grinding.

GCB said the new facility in Suffolk, UK strategically occupies over 17 acres of land and boasts 300,000 sq ft of built-up area, conveniently situated near the port of Felixstowe.

The location enables it to serve chocolate makers and other clients across Europe, providing just-in-time local deliveries of liquid and solid products, as well as professional services such as technical support.

Posted by Maxlim2000 > 2023-12-05 11:59 | Report Abuse

The more he produces the more losses because material is super expensive right now

Posted by Nepo > 2023-12-06 08:08 | Report Abuse

https://www.klsescreener.com/v2/news/view/1243421

Posted by Nepo > 2023-12-06 08:10 | Report Abuse

https://www.klsescreener.com/v2/news/view/1243917

Posted by Nepo > 2023-12-06 08:14 | Report Abuse

SINCE peaking at RM3.70 in August 2020, shares in cocoa grinder Guan Chong Bhd have been heading south, in tandem with the surge in cocoa bean prices to the highest levels seen in more than 40 years, driven mainly by the tight supply of cocoa beans and the El Niño weather.

Last week, as cocoa futures breached US$4,000 a tonne again, having soared 60% year to date, Guan Chong’s share price reacted by tumbling to a more than three-year low of RM1.99.

Given that cocoa bean prices are unlikely to ease significantly in the near term, analysts say the world’s fourth-largest cocoa grinder may not be able to see a quick improvement in its financial performance.

“High cocoa bean prices will affect demand for grinding capacity in the future, not in the short term. That is one part of the uncertainty faced,” an analyst who declined to be named tells The Edge.

“If this is followed by a drop in market demand, then Guan Chong’s [shares] will be under pressure as well,” he adds.

From a mid-term view, he opines that Guan Chong is undervalued given its established operations and sales channels. “But when cocoa bean prices stabilise, we should see a more normalised operating environment.”

Posted by Nepo > 2023-12-06 08:15 | Report Abuse

Nonetheless, investors adopting a short-term view may continue to shy away from Guan Chong’s shares.

“Right now, we haven’t even factored higher cocoa bean prices into our forecasts … If you have a short-term investment horizon, it looks like there is more uncertainty. But once cocoa bean prices take a turn, coupled with stable market demand, then it will be a very good future for them. Contribution from the Ivory Coast facility should also kick in, and all these are catalysts for the stock,” the analyst explains.

Posted by Nepo > 2023-12-06 08:15 | Report Abuse

The analyst also notes that Guan Chong’s forward-selling mechanism remains robust.

“Basically, they deliver based on their scheduled dates; the only moving part in the short term is the mark-to-market losses coming from the derivatives because of the high cocoa bean prices.

“Although Guan Chong can sell higher in order to pass on the costs, there’s a limit to the prices chocolate manufacturers can pay. It may dampen consumer demand if chocolate prices are too high, thus affecting grinding margins,” he says.

He observes that because of the price issue, global chocolate manufacturers are adopting a wait-and-see attitude, hoping for relief.

Posted by Nepo > 2023-12-06 08:16 | Report Abuse

The analyst also notes that Guan Chong’s forward-selling mechanism remains robust.

“Basically, they deliver based on their scheduled dates; the only moving part in the short term is the mark-to-market losses coming from the derivatives because of the high cocoa bean prices.

“Although Guan Chong can sell higher in order to pass on the costs, there’s a limit to the prices chocolate manufacturers can pay. It may dampen consumer demand if chocolate prices are too high, thus affecting grinding margins,” he says.

He observes that because of the price issue, global chocolate manufacturers are adopting a wait-and-see attitude, hoping for relief.

Posted by Nepo > 2023-12-06 08:17 | Report Abuse

Commenting on its outlook, Guan Chong has said it will maintain its focus on its core business of cocoa ingredient processing, as well as the expansion of the higher-margin industrial chocolate market and optimisation of production according to market conditions.

Its newly commissioned UK facility has boosted the group’s annual industrial chocolate capacity by 16% or 16,000 tonnes to 116,000 tonnes.

In total, Guan Chong has a total annual grinding capacity of 377,000 tonnes, with major production facilities located in Pasir Gudang, Johor (150,000 tonnes), Batam, Indonesia (120,000 tonnes) as well as San Pedro, Ivory Coast (60,000 tonnes). Its cocoa ingredients are exported to more than 70 countries, including chocolate manufacturers and other leading cocoa ingredient traders.

Bloomberg estimates show that Guan Chong may still post a better net profit of RM156.7 million in FY2023, followed by RM202.3 million in FY2024 and RM265 million in FY2025.

Rakuten Trade expects Guan Chong’s core net earnings to stay flat at RM127.9 million for FY2023, before improving to RM183.1 million in FY2024.

It, however, is cautious about the group’s financial leverage as its net gearing has reached almost 0.9 times with an interest coverage ratio of 2.1 times.

“According to the management, more than two-thirds of the borrowings are in US dollars or other foreign currencies, which act as a natural hedge against US dollar receivables and inventory,” the research house says in an Oct 6 note.

Though Guan Chong does not have a fixed dividend policy, Rakuten Trade expects it to pay dividends of 2.7 sen and 3.9 sen for FY2023 and FY2024 based on a 25% payout ratio. This will translate into dividend yields of 1.2% and 1.8% respectively.

As at end-June 2023, Guan Chong was in a net debt position of RM1.58 billion, with RM1.64 billion in gross borrowings.

The company’s shares are tightly held by the founding Tay family via Guan Chong Resources Sdn Bhd, with a 49.78% stake. Another substantial shareholder is the Employees Provident Fund, which holds 5.54% equity interest.

Posted by Nepo > 2023-12-06 10:57 | Report Abuse

The share price @ RM 1.86 still hold it very well despite index down -3.50
Preferably volume transact today can be a little bit bigger..

Posted by jamestecs > 2023-12-07 12:16 | Report Abuse

free fall, wait for it

Posted by jamestecs > 2023-12-07 16:50 | Report Abuse

cocoa raw price start to fall back already, though normalization will take some time, at this price point, what a big bargain.

Posted by 8u29song > 2023-12-08 09:21 | Report Abuse

come today close 1.90

Posted by 8u29song > 2023-12-08 09:31 | Report Abuse

Thursday, 7 Dec 2023
6:13PM
GCB TAY HOE LIAN (460,000 units Acquired)
Wednesday, 6 Dec 2023
6:03PM
GCB EMPLOYEES PROVIDENT FUND BOARD (107,400 units Acquired)
6:03PM
GCB TAY HOE LIAN (150,000 units Acquired)
Monday, 4 Dec 2023
5:19PM
GCB HIA CHENG (600,000 units Acquired)
5:19PM
GCB GUAN CHONG RESOURCES SDN. BHD. (266,000 units Acquired)
5:19PM
GCB TAY HOE LIAN (100,000 units Acquired)
5:19PM
GCB HIA CHENG (600,000 units Acquired)
Friday, 1 Dec 2023
6:26PM
GCB TAY HOE LIAN (650,000 units Acquired)
5:53PM
GCB EMPLOYEES PROVIDENT FUND BOARD (401,600 units Acquired)

Posted by 8u29song > 2023-12-08 09:37 | Report Abuse

I small fish just looking for a 0.20 gain...in a month or two..

Posted by 8u29song > 2023-12-08 09:42 | Report Abuse

some one jaga the closing price for last few days

Posted by 8u29song > 2023-12-08 09:44 | Report Abuse

wonder who sell at such low price

Posted by Bursino > 2023-12-08 09:46 | Report Abuse

Global. Ethical. Good management. Organic growth. Leverage on borrowings to expand. Unfortunately the global market conditions are not favorable.