GAB – Fundamental Analysis (25 Jan 2015)

Fundamental Analysis as of FY15 – http://www.slideshare.net/lcchong76/gab-fundamental-analysis-fy15

Excel – http://1drv.ms/1RHc0TN

Latest Financial – Q2 2016 Financial Report (19 Jan 2015)

FY16Q2 Analyst Briefing Presentation

FY16 Q2 Results Highlight:

  • GAB recorded 2QFY16 revenue of RM524.5m (+0.7% yoy) and core earnings of RM90.8m (+19.3% yoy) due to improved cost efficiency, phasing of certain brand advertisement and promotion investments which will take place in the coming months, and higher sales.
  • Profit before tax  increased by 16% from RM174 million to RM202 million

Valuation:

  • In my opinion, fair value of GAB range from 15.3 to 17.7. Uncertainty risk of fair value is MEDIUM.

GAB-FY16-Q2-Fair-Values

Going Forward:

  • For FY16, it will be challenging for GAB to pass on large price increases to consumers in view of
    • The softer environment
    • Anti-profiteering act which prohibits price increases if it increases profitability excessively.
  • I will continue to hold and accumulate this stock for my kids.

At the time of writing, I owned shares of GAB.

One thought on “GAB – Fundamental Analysis (25 Jan 2015)

  1. Good Morning LC,
    On slide 34, the CAGR of 5 year return was 18%.
    For stock known for its high dividend yield, this is outstanding.
    The current year will test the capability of the management to maintain its previous performance.
    Thank you for sharing the slides.

    Liked by 1 person

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