Khee San is Malaysia's largest manufacturer of sweets and candies. Its products undergo a very intensive marketing strategy where we can witness its existence in different level. From small retail markets to mobile retailers and giant markets, we are able to purchase its products for either small or large quantity where it shows that the firm possess an excellent distribution channel. In terms of the company's size and its well-developed product mixes, they have far surpassed their competitors. Although it is not as dominant as Wrigley the famous chewing gum ever existed, its chewy candy possess the potential to compete with Wrigley's (It's just my personal taste and preference anyway). With the company's momentum picking up, acquisitions of new plants and machineries were done in recent years to increase the production efficiency to replace the obsolete ones. This indicates that the business nature itself need not much capital expenditure for a long time. Furthermore, with such excellent product mixes, the company is able to retain the market's preference for a long time until its cash flow is able to finance further product discoveries.

Unfortunately, the market is flooded with a huge variety of candies and gums that put Khee San in a situation where there is no regulated competition. In other words, ability to raise price is quiet low when it comes to such stiff competition. Also, as Khee San is now an associate of London Biscuits Berhad, its future intrinsic value will never be in a good position ( No offence, but figure indicates that London Biscuits' track records is quite weak). If there is any magic combination for these confectionary that lead to a possible food industry evolution, my view might be changed.

According to the operating cash flow for the past ten years, it undergoes a mild fluctuations. The cash level was low until 2012 where it enjoys sudden boost. No consistent upward growth is shown. Also, both ratios are not showing satisfactory results where it is significantly below standard. In my opinion, this company fails to show values consistent to the growth of future earnings.