Guan Chong sticks to the grind

Guan Chong managing director and chief executive officer Brandon Tay Hoe Lian

MALAYSIA’S only listed global player in cocoa derivatives, Guan Chong Bhd, has seen half of its share price melt away this year amid a volatile cocoa market and cautious consumer demand.

The decline underscores the close link between cocoa bean prices and the products Guan Chong manufactures: cocoa powder, butter and liquor. Profit margins hinge on “product ratios” – the relationship between the selling prices of cocoa butter, powder and liquor, and the cost of the cocoa beans used to produce them.