LONBISC

Company Profile
London Biscuits Berhad is engaged in the manufacturing and trading of confectionery and other related foodstuffs.

Financial Result
LONBISC net profit up 27% q-o-q from RM2.49mil to RM3.16mil. Revenue grow 20% from RM39mil to RM46.6mil. Current quarter result within my expectation. 3sen dividend for FY09 has been a announced, where it is lower then i expected.However, we understand that company need to keep some cash for hire-purchase and term loan repayment.

Company Valuation
Based on its trading price of RM1.04, LONBISC has P/E of 5.2x, which is fairly cheap.

Overall
LONBISC is very consistent in its net profit for the pass 5 years. Although its Debt to capital is about 0.51,it should be able to repay the debt when company continue making profit. Hold