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