LONBISC (7126) - Stocks With Momentum: London Biscuits
London Biscuits Bhd (+ve)
LONDON Biscuits (Lonbisc) (Fundamental: 0.3/3, Valuation: 2.4/3) is the largest Malaysian manufacturer of confectionery. Cake confectionery is the company’s main revenue contributor at 44.5%, followed by candy confectionery with 30.25%. Wafers and snack confectionery make up the remainder.
The company’s revenue has grown steadily from RM223 million in FYJune2010 to RM 360 million in FY2014, while annual net profit hovered between RM11 million and RM16 million.
As of FY2014, 47% of Lonbisc’s products were exported to Asia and the Middle East, making the company a beneficiary of the weak ringgit. Key markets include Indonesia, Thailand and Hong Kong.
Interestingly, of the 36% in unhedged foreign currency trade receivables amounting to RM36.4 million, 21% are denominated in USD, which will benefit Lonbisc in the current strong dollar environment.
The stock is trading at just 0.39 times book, with a trailing 12-month P/E of 9.37 times. The company has also pared gearing over the years to 54.23% as at 30 September 2014.
http://www.theedgemarkets.com
London Biscuits Bhd (+ve)
LONDON Biscuits (Lonbisc) (Fundamental: 0.3/3, Valuation: 2.4/3) is the largest Malaysian manufacturer of confectionery. Cake confectionery is the company’s main revenue contributor at 44.5%, followed by candy confectionery with 30.25%. Wafers and snack confectionery make up the remainder.
The company’s revenue has grown steadily from RM223 million in FYJune2010 to RM 360 million in FY2014, while annual net profit hovered between RM11 million and RM16 million.
As of FY2014, 47% of Lonbisc’s products were exported to Asia and the Middle East, making the company a beneficiary of the weak ringgit. Key markets include Indonesia, Thailand and Hong Kong.
Interestingly, of the 36% in unhedged foreign currency trade receivables amounting to RM36.4 million, 21% are denominated in USD, which will benefit Lonbisc in the current strong dollar environment.
The stock is trading at just 0.39 times book, with a trailing 12-month P/E of 9.37 times. The company has also pared gearing over the years to 54.23% as at 30 September 2014.
http://www.theedgemarkets.com
