GAB – Fundamental Analysis (27 Apr 2015)

Excel – Download the analysis file

Financial Report – Q3 2016 Financial Report (12 Apr 2016)

FY16 Q3 Results Highlight:

  • GAB recorded 3QFY16 revenue of RM151.9m (+3.1% yoy) and core earnings of RM50.8m (+28.9% 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 33.5% from RM70.2m to RM52.6m

Valuation:

  • In my opinion, fair value of GAB range from 18.2 to 18.8. Uncertainty risk of fair value is MEDIUM.

GAB-FY16Q3-Football-Field

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.

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

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