GAB (3255) - GAB – Fundamental Analysis (27 Apr 2015)

GAB – Fundamental Analysis (27 Apr 2015)

Excel – Download the analysis file
Financial Report – Q3 2016 Financial Report (12 Apr 2016)
FY16 Q3 Results Highlight:

• GAB recorded 3QFY16 revenue of RM151.9m (+3.1% yoy) and core earnings of RM50.8m (+28.9% yoy) due to improved cost efficiency, phasing of certain brand advertisement and promotion investments which will take place in the coming months, and higher sales.
• Profit before tax increased by 33.5% from RM70.2m to RM52.6m

Valuation:

• In my opinion, fair value of GAB range from 18.2 to 18.8. Uncertainty risk of fair value is MEDIUM.

Going Forward:

• For FY16, it will be challenging for GAB to pass on large price increases to consumers in view of
  • The softer environment
  • Anti-profiteering act which prohibits price increases if it increases profitability excessively.
• I will continue to hold and accumulate this stock.

At the time of writing, I owned shares of GAB.

GAB (3255) - GAB – Fundamental Analysis (27 Apr 2015)

https://lcchong.wordpress.com/2016/04/27/gab-fundamental-analysis-27-apr-2015/