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
