GAB – Fundamental Analysis (25 Jan 2015)

2016-01-25 Uncategorized

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.

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.