Review Of Guan Chong's Earnings

One of the hot stocks reported its earnings just now. Of course I was interested.

And of course, mind you, this was a stock that was hot. Yup, so hot it was surging so much that the owners did not know why!

Seriously!

Stop starring! :P

Here's a news clip: Guan Chong does not know why share price surged

Here's the lovely one year stock chart for Guan Chong. Yup, Houston we did have a launching for this stock into orbit. :P

Yes, Twelve months ago this stock was a mere 0.425. Earluer this month, on the 3rd Aug, it hit 1.54! (The stock was around 60 sen in May!!!)

Missed out on a gem?

But the stock was cheap for a reason.

The earnings were really uninspiring.

Here's a copy of a OSK report back in 2008. Look the earnings table end of the report. You can see the lacklustre earnings.

But then something 'changed' recently. The 'earnings' did improve... a lot!

Today, Guan Chong released its 2010 Q2 earnings. Here's an updated summary.


It does look extremely impressive if based just on those numbers, yes?

However, if I add in the loans and receivables, perhaps it's not as impressive, yes?


Some might even say it's justifiable because the company is earning much more...

From the company earnings notes... page 10.

• The Group’s revenue of RM270.78 million for the current financial period ended 30 June 2010 is higher than the revenue in the previous corresponding financial period ended 30 June 2009 of RM120.89 million. The increase of 123.99% in turnover is mainly due to higher sales volume and market price of cocoa products. The profit before tax for the period ended 30 June 2010 increased substantially to RM25.16 million. This is mainly attributed by higher revenue generated in current quarter, gain from commodity future contracts and net fair value gains on foreign exchange derivatives.

Huhu!

Gain from commodity future contracts?

Hmmmm.....

There's a nice table provided by Guan Chong.


Huhu!

How?

DO you reckon that you missed out on a gem?

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10/8/2010

Please see this important update also: Update On Guan Chong's Posting