July 2012
Factsheet G U A N C H O N G B E R H A D (646226-KK) Plo 273, JalanTimah 2, 81700 Pasir Gudang, Johor, Malaysia Tel: +607-251 251 1588 Fax: +607-251 1711 Corp Website: www.gcb.my Investors: http://gcb.investor.net.my
FINANCIAL PERFORMANCE 20%
120 80
29
23
643
1160
1382
290
354 0
0
FY2009
FY2010
FY2011
1Q11
PBT
2-yr CAGR PBT: 110.1% p.a.
120
10.9%
11.7%
122
166
38
48
FY2009
FY2010
FY2011
1Q11
1Q12
0%
Balance Sheet
RM’mil
PBT Margin
12%
4%
32 0
1Q12
PBT & Margin
RM’mil 160
40
16%
8%
5.1%
40
600
EBITDA Margin
13.6%
80
EBITDA
EBITDA: 127.7% p.a. 13.1%
160
EBITDA & Margin
10.6%
109
80
1,200
‘000 MT RM’mil 200 2-yr CAGR 120
Sales Tonnage
12.0%
Revenue & Sales Tonnage
RM’mil Revenue 1,800 2-yr CAGR Revenue: 46.6% p.a. 60
Guan Chong Berhad (GCB) is one of the largest cocoa ingredients producers in the region, with total bean grinding capacity of 200K MT/year – 80K MT in Pasir Gudang, Malaysia, and 120K MT in Batam Indonesia. Currently, GCB exports its “Favorich” brand cocoa ingredients to >60 countries, dealing directly with key customers including renowned manufacturers of MARS, Lotte, Nestle, Kraft.
(as at 31 Dec)
16% 300 250
12.0%
12% 200
9.6%
150
FY2011
1Q11
236
265
140
50 0
43
111
FY2010
34
FY2009
150
0
100 182
4%
40
107
5.3%
105
8%
80
34
En route to Main Board, SGX-ST
BUSINESS OVERVIEW
Bloomberg: GUAN MK Reuters: GNCH.KL
FY2009
0% 1Q12
FY2010
Shareholders Equity
FY2011 Fixed Assets
LISTING STATISTICS GCB aims to undertake a secondary listing on SGX-ST SGX by end-July / early August 2012
PRODUCTION FACILITIES GCB has 4 manufacturing plants in Malaysia, and 1 in Indonesia
Total no. of IPO shares: up to 62.0 mil shares 31.0 mil new shares 31.0 mil vendor shares Placement Tranche ATM Tranche
No of Shares
Up to 60.0 mil Up to 2.0 mil Up to 62.0 mil
Utilisation of Proceeds:
GUAN CHONG BERHAD
Guan Chong Cocoa Mfg: Bean processing (80K MT/year) Enrich Mix: Sugar cocoa preparation; ISO & HACCP (20K MT/year) GCB Specialty Chocolate: Industrial choc production (2.4K (2 MT/year) GCB Foods: OEM choc malt drinks for hypermart brands and own “Cacaorich” brand; ISO, Halal and MS 1480 (2.4K MT/year)
PT Asia Cocoa Indonesia: Bean grinding (120K K MT/year), MT/year) of which the first line was commissioned in February 2011, and the second line in June 2012.
COMPREHENSIVE PRODUCT RANGE Cocoa Ingredients
Cocoa Preparations
Industrial & Consumer Chocolates
OEM Chocolate Malt Drink
44.7%
45.2%
of Facilities Working Capital 0.0% Expansion 20.0% 40.0% 60.0%
5.0% 5.1% M&A
Expenses 80.0% Listing 100.0%
GROWTH PLANS 1. Increase production capacity and facilities • 2nd production line in Batam plant increased GCB’s production capacity to 200K MT per annum • GCB Specialty and GCB Foods established to produce industrial and consumer chocolates 2. Strategic acquisitions, joint ventures and overseas expansions as key sources of growth • Carlyle Cocoa, the Group’s long-term long investment in the USA, will increase its production duction capacity to support a growing customer base in the American market 3. Changing product mix strategy • Increase cocoa powder production to meet increased demand • Increase production of deodorised cocoa butter 4. Providing value-added service ervice • Provide customers with advice on technical applications 5. Improving sources of supplies upplies and ties with customers • Locate ocate warehouses close to bean suppliers to reduce cost of logistics and attain better quality control
INVESTMENT MERITS
COMPETITIVE ADVANTAGES
Strong and established leadership Depth of technical know-how Stringent quality assurance One-stop customised solutions Continual innovation and product development
For more information, please contact: Mr. Eruwin Sudirman, Big Picture Consulting
T +65 9101 5404 T:
• Among the fastest growing cocoa processors in the world o Integrated operations and established track record o Efficient cocoa processing ability • Continuous expansion plan to broaden earnings base o Wide distribution network • Emerging markets driving demand for cocoa products o Rising consumption of chocolate due to growing affluence (e.g. China, Russia) • Single-digit PE, double-digit digit growth o PE valuation of single-digit digit (historical FY11 PE of 7.5x) o Potential valuation upside
INVESTMENT VALUATION Historical PE Ratio (based on pre-invitation invitation share cap) Historical Dividend Yield (based on pre-invitation invitation share cap)
E:
[email protected]
7.5x 3.5%
