Chocolate market outlook seen improving

While the MCO affected many other manufacturers’ supply and demand dynamics, Guan Chong managed to maintain its utilisation rate at an optimal level of 95% and demand for mass market chocolate remains healthy as the stay-at-home theme plays out globally.

PETALING JAYA: Guan Chong Bhd’s production should improve further in the second half of this year as its operations normalise and demand for mass market chocolate remains robust.

RHB Research believes that the company’s second quarter earnings will be sustained at RM68mil-RM72mil despite the implementation of the movement control order (MCO), thanks to forward sales and a relatively stable combined ratio.