This article first appeared in The Edge Financial Daily, on January 13, 2016.

Guan Chong Bhd (-ve)

COCOA processor Guan Chong continued its uptrend in 2016, increasing by 2.68% to close at RM1.53. The trading volume of 8.2 million shares was high relative to its 200-day average volume of 267,746. It closed at RM1.35 last year but had jumped by 13.3% in the second week of 2016.

On Dec 31, 2015, the company announced that it had acquired more shares in its associate company, SMC Food21 (Malaysia) Sdn Bhd. Upon completion of the exercise, the company will hold 20% of the enlarged paid-up capital of SMC Food21.

For 3Q2015, revenue surged 72.2% to RM708.8 million on the back of higher average selling price and volume of cocoa cake and powder. It recorded a net profit of RM21.7 million, reversing a net loss of RM13.2 million a year ago.

Up to 55.4% of Guan Chong production is for the export market.