Guan Chong Bhd (-ve)
TRADING of the shares in cocoa ingredient producer Guan Chong Bhd (fundamental: 0.9/3, valuation: 1.8/3) triggered our momentum algorithm yesterday for the third time this month.
The stock closed eight sen or 3.88% higher at RM2.14 after 3.52 million shares were crossed, near 10 times its 200-day average volume of 365,792 million shares.
On Monday, Guan Chong reported a record second-quarter earnings, with net profit nearly doubling to RM43.03 million in the quarter ended June 30, 2018, from RM22.88 million a year ago, on improved margins. Quarterly revenue rose 1.92% to RM491.58 million from RM482.3 million, thanks to a higher sales volume of cocoa products.
Guan Chong said it is optimistic that its new plant in Pasir Gudang, with a production capacity of 500,000 tonnes per year, will take the group to its next level of growth as its existing plants in Batam and Pasir Gudang are operating at near-full capacity.