[%eTcq%]
Research by RHB
Buy – TP RM5.10

“The Cocoa Rush; Keep BUY"

Stay BUY, new MYR5.10 TP from MYR4.70, 17% upside with c.2% yield. Guan Chong’s stellar 1Q24 earnings (+2.9x YoY) is in line with its sanguine earnings growth outlook for 2H24 – due to newfound pricing power, as highlighted in its positive post-results briefing session. We remain bullish and see upside risks to our estimates during this super-cycle, bolstered by the historic high combined ratio on sustained cocoa demand coupled with limited grinding and bean-on-offer. Medium-term catalysts include production growth in both its Ivory Coast (tax-free) and UK plants.

Analyst:
Lee Meng Horng 
[%zBxS%]

$KLSE-GCB
Research by RHB
Buy – TP RM5.10

“The Cocoa Rush; Keep BUY"

Stay BUY, new MYR5.10 TP from MYR4.70, 17% upside with c.2% yield. Guan Chong’s stellar 1Q24 earnings (+2.9x YoY) is in line with its sanguine earnings growth outlook for 2H24 – due to newfound pricing power, as highlighted in its positive post-results briefing session. We remain bullish and see upside risks to our estimates during this super-cycle, bolstered by the historic high combined ratio on sustained cocoa demand coupled with limited grinding and bean-on-offer. Medium-term catalysts include production growth in both its Ivory Coast (tax-free) and UK plants.

Analyst:
Lee Meng Horng 
lee.meng.horng@rhbgroup.com