BISCUITS Industry Size and Sophistication The total sales of the industry in 1995 was US$ 199.

6 million. The level of industry sophistication varies from production of unbranded local-style biscuits targeted at the low end market to export quality branded products. The majority of businesses are mainly involved in the production of plain unbranded biscuits with very localized distribution. Only a few companies are involved in the branded high end market. Biscuits produced include plain cream crackers, sugar cracker, wheatmeal cracker, cheese crackers, oatmeal biscuits, digestive, egg rolls, wafers, chocolate chip cookies, chocolate coated biscuits, cream sandwich biscuits, assorted biscuits, butter cookies, Danish cookies, American cookies, sesame cookies, coconut cookies, peanut cookies, almond butter cookies, cashewnut butter cookies, pineapple jam cookies, pandan flavoured butter cookies and alike. Industry Structure The industry is highly fragmented with more than 300 companies involved in 1995. A large number of family owned small to medium sized businesses supply localized markets. The industry is dominated by 4 major brand driven companies with nationwide distribution, namely Britannia Brands, Hwa Tai Food Industries, Perfect Food Industries and Khong Guan Biscuit Factory (Johore). The larger companies also export to the Middle East, Australia, Canada, USA, UK, Southeast Asian countries, Hong Kong, Taiwan, Japan, China, Mauritius, Maldives, Ghana, Nigeria, Russia and Papua New Guinea. Key Industry Drivers Economic growth over the past 10 years provided opportunities for market growth and expansion in the local and regional markets. Competition from lower priced "me too" products in the local market have placed pressure on the larger companies to improve their product quality and expand export markets in recent years. Recent Industry Development Britannia Brands (formerly Nabisco) established the quality benchmark which resulted in the wholesale upgrading of the image and quality of Malaysian biscuits. All major biscuit manufacturers have upgraded their product image in the local market. The "Me too" products of smaller businesses have become quite prominent over the past 10 years. Future Industry Status Malaysia is ASEAN's high quality biscuit manufacturing centre. Its industry will continue to upgrade product lines to compete in the local and overseas market. More R&D activities will take place to achieve this. Smaller businesses will continue to operate to serve localised demand with their lower quality biscuits.

its profit margin decreased significantly due to higher operation costs. The higher operation costs were due to the increase in the cost of raw materials while the heavy A&P expenditure was due to LBB¶s re-branding exercise. It¶s free from cholesterol and Trans fatty acids.42 as at Sept 13) LONDON Biscuits Bhd¶s (LBB) registered its highest revenue for FY07 in the fourth quarter (4Q). filled with three (3) distinctive creams. vanilla cream and creamy mint.1% and 92% lower than the previous quarter.PRODUCT All our products are HALAL & HACCP certified and have won numerous Product Excellence & Innovation Awards both locally and abroad. it is a healthier cream sandwich choice for everyone especially the kids. which were 80. Its revenue increased by 21. Its fourth quarter¶s profit before tax (PBT) and net profit were RM860. heavy advertising and promotions (A&P) expenditure and increased finance costs. the group registered a lower profit compared to previous financial year despite an increase in revenue.9mil in 4Q. The .000 and RM270.7mil in 3Q to RM34.000 respectively. LAUNCH OF NEW PRODUCT D¶Cream D¶Cream ± Sandwich Cookies with Vanilla Cream D¶Cream ± Sandwich Cookies with Strawberry Cream D¶Cream ± Sandwich Cookies with Creamy Mint D¶Cream is a mouth-watering chocolate cookies. loaded with chocolate chips. Meanwhile. strawberry cream. anywhere of the day! mktng strategy LONDON BISCUITS BHD (RM 1. For FY07. It is fun to have a pack of D¶Cream anytime.2% from RM28.

In deriving LBB¶s target price. LBB¶s profit margin was slashed by higher raw material costs.2 sen. You don't even need a webpage to get started ± Google will help you create one for free. You attract customers People can simply click your ad to make a purchase or learn more about you. techhique: You create your ads You create ads and choose keywords. Recommendation: Therefore.42. our forecast EPS for FY08 is 14. your ad may appear next to the search results. Acquiring stakes in Lay Hong Bhd was one of the steps and the other steps will be implemented progressively over the next six months. The Group will also undergo its export rationalising exercise by cutting off the unprofitable export destinations and focusing on markets which have strong purchasing power and growth potential such as Hong Kong.weaker performance was due to the flood at the beginning of the financial year and also the hike in raw materials prices. Our target price for LBB is RM1. the Group will continue to launch new products with premium positioning to improve its margin by first half of FY08. Hence. Comment by PM Securities: LBB signed an agreement with Hwa Tai Industries Sdn Bhd (HTI) and its subsidiary. Hwa Tai Distribution Sdn Bhd (HTD) to appoint HTI to manufacture and pack LBB¶s cake products in July this year whereas HTD will be the distributor for the resale and distribution of LBB¶s cake products. It's that easy! . Now you're advertising to an audience that's already interested in you. Your ads appear on Google When people search on Google using one of your keywords. we peg it to Cocoaland¶s PER multiple of 10x. etc. which are words or phrases related to your business. Vietnam. In addition. We expect the FY08 net profit to be lower than current financial year due to the ongoing hike in commodity prices. LBB is taking steps to reduce the overall operating costs arising from increase in raw materials prices. This is due to both stocks are in similar range of sales turnover and profit margin. we recommend a Hold on the stock.