GCB (5102) - GCB: Earnings Improved


Results Update
For QE31/3/2016, GCB's NP rose 15-fold q-o-q to RM14 million on the back of a mere 2%-increase in revenue to RM591 million. Revenue rose 34% y-o-y, which help to bring GCB back into the black compared to a net loss of RM1.9 million last year.

Profits increased q-o-q  mainly  due  to  increased  sales  volume  and  selling price  of cocoa  butter  and  cocoa  solids as well as higher  net  gain on  foreign  exchange.


Table: GCB's last 8 quarterly results


Chart 1: GCB's last 46 quarterly results

Valuation

GCB (closed at RM1.00 yesterday) is now trading at a trailing PER of 12.5 times (based on last 4 quarters' EPS of 8.01 sen). At this PER, GCB is deemed fairly valued.

Technical Outlook

GCB had a sharp rally after breaking above its long-term downtrend. The current pullback has found support coming from the horizontal line at RM1.00.


Chart 2: GCB's monthly chart as at June 2, 2016 (Source: ShareInvestor)


Chart 3: GCB's monthly chart as at June 2, 2016 (Source: ShareInvestor)
 
Conclusion

Based on good financial performance, reasonable valuation & mildly positive technical outlook, GCB is still rated a BUY.

Note:
In addition to the disclaimer in the preamble to my blog, I hereby confirm that I do not have any relevant interest in, or any interest in the acquisition or disposal of, GCB.

GCB (5102) - GCB: Earnings Improved 
http://nexttrade.blogspot.my/2016/06/gcb-earnings-improved.html

GCB (5102) - GCB: Earnings Improved GCB (5102) - GCB: Earnings Improved Reviewed by admin on 6/03/2016 Rating: 5
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