Monday 2 April 2012

Guan Chong versus Dutch Lady (A Comparative Study)


8.3.2012 5.3.2012
Guan Chong Dutch Lady
Income Statement
31/12/2011 31/12/2011
RM (m) RM (m)
Revenue 1,382.80 810.65
Gross Profit 304.47
Operating Profit 156.667 139.372
Financing costs -6.598 -0.919
PBT 150.069 141.553
PAT 124.641 108.082
EPS (basic) sen 38.68 168.88
EPS (diluted) sen 37.27
Balance Sheet
NCA 250.665 74.048
CA 650.093 324.465
Total Assets 900.758 398.513
Total Equity 268.494 259.154
NCL 23.118 4.051
CL 609.146 135.308
Total Liabilities 632.264 139.359
Total Eq + Liab 900.758 398.513
Net assets per share 82.550 4.05
Cash & Eq 13.16 193.143
LT Borrowings 8.917 0
ST Borrowings 427.672 0
Net Cash -423.429 193.143
Inventories 466.392 93.448
Trade receivables 170.337 36.713
Trade payables 161.907 121.831
Quick Ratio 0.30 1.71
Current Ratio 1.07 2.40
Cash flow statement
PBT 150.069 141.553
OPBCWC 182.743
Cash from Operations -54.949 188.290
Net CFO -72.380 161.940
CFI -106.673 -7.135
CFF 180.136 -47.319
Capex -107.002 -10.882
FCF -179.382 151.058
Dividends paid -38.932 -46.400
DPS (sen) 14.00 72.5
No of ord shares (m)
basic 317.957 64
diluted 330.026
Financial Ratios
Gross Profit Margin    - 37.56%
Net Profit Margin 9.01% 13.33%
Asset Turnover 1.54 2.03
Financial Leverage 3.35 1.54
ROA 13.84% 27.12%
ROC 18.01% 163.73%
ROE 46.42% 41.71%
Valuation 8.3.2012 5.3.2012
Price  2.6 29.5
Market cap (m) 858.07 1888.00
P/E 6.88 17.47
P/BV 3.20 7.29
P/FCF -4.78 12.50
P/Div 22.04 40.69
DPO ratio 0.31 0.43
EY 14.53% 5.72%
FCF/P -20.91% 8.00%
DY 4.54% 2.46%

1 comment:

GC said...

Guan Chong's gross profit margin is about 15%. The cost of goods (in this case cocoa) they sold is very expensive.
To make more money they need to buy in more cocoa. As a result they always need to take huge loan and are always in debt (although temporary).

The good thing is they are selling something that is always in demand - chocolate.

Take huge loan to buy material, process the material and sell them.
Take in more and more loan to buy more and more cocoa to process and sell them.

Is this a good business model?
Will there be a time where the world says "hey, i don't want to eat any more chocolate" and force Guan Chong not to service the loan repayment?

Please share your view.