PETALING JAYA: Guan Chong Bhd had a weak third quarter of the financial year 2022 (3Q22), but its final quarter will come in better thanks to the contribution from the group’s new cocoa grinding facility in Ivory Coast.
RHB Research understands the Ivory Coast plant has commenced operations and is slated to ramp up output to optimal capacity by December, with the expectation of a full contribution in financial year 2023 (FY23).
“In addition, the declining trend of energy costs and higher average selling prices are expected to drive better profitability for its Schokinag operations in Germany moving forward, along with the capacity expansion for industrial chocolate,” the research firm said in a report.
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