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									                                                                                                        Global Research - Bahrain

                                                                                                           Results Update


                                      General Trading & Food Processing Company B.S.C.
    Bahrain

                                                               Facing stiff competition
                                                                                                                   August, 2007
                                 Reuters Code:
                                 GTFP.BH
                                                                                                                 HOLD
                                 Listing:
                                 Bahrain Stock Exchange

                                 CMP:
                                 400fils (As on August 20th, 2007)
                                 Key Data                                  Highlights
                                 CMP# (fils)                      400
                                 EPS* (fils)                     27.6      -   General Trading and Food Processing Company
                                 BVPS* (fils)                   283.4          (TRAFCO) reported total sales of BD23.3mn in
                                 P/E*                            14.5          2006, down by 6.1% from BD24.9mn reported in
                                 P/BV*                             1.4         2005. The drop in sales is attributable to a decline
                                 12M Avg. vol.                 41,806          in the sales of fruits and vegetables division and
                                 52 week Lo / Hi (fils)       276/400          the transfer of the basic supplying agreements to a
                                 Source: Global Research                       different supplier.
                                  #As on Aug 20th , 2007 *2007 Projected

                                  -   TRAFCO’s net profit for 2006 stood at BD1.2mn against BD1.9mn in the previous year.
                                      The 34.5% decrease in profit was mainly attributed to the decline in sales, which resulted
                                      in a 5.3% net profit margin in 2006 as compared to 7.7% recorded in the previous year.

                                  -   TRAFCO reported a net profit of BD1.2mn in 1H-2007, a 66.9% increase over the
Omar M. El-Quqa, CFA                  BD0.7mn reported in the corresponding period of last year. Net profit grew by 113% in
Executive Vice President
omar@global.com.kw                    2Q-2007 as compared to the same quarter of the previous year. The growth in profit came
Phone No:(965) 2400551 Ext.104        on the back of a growth in sales which reached BD14.5mn, an increase of 32.1% from
                                      BD10.9mn reported in 1H-2006.
Faisal Hasan, CFA
Head of Research
fhasan@global.com.kw              -   TRAFCO’s total assets reported YTD growth of 11.1% in 1H-2007 to reach BD30.6mn
Phone No:(965) 2400551 Ext.304
                                      as compared to BD27.6mn recorded at the end of 2006.
Abeer Gouda
Financial Analyst                 -   At its current market price of BD0.400 TRAFCO’s stock is trading at 20.0x its 2006
agouda@global.com.kw
Phone No:(965) 2400551 Ext.501
                                      earnings, and 14.5x its projected 2007 earnings.

Mona Al-Mukhaizeem                -   The combination of the revised projections and revised cost of equity have led to a value
Assistant Financial Analyst           of BD0.408 per share. Based on a forward P/E multiple of 10.7x for selected food services
mona@global.com.kw
Phone No:(965) 2400551 Ext.580        companies in the GCC and the 2007 projected EPS for the company, the peer valuation
                                      method resulted in a fair value of BD0.297 per share. Assigning an 80% weight to the
                                      DCF value, and a 20% weight to the relative value, the weighted average share value of
                                      TRAFCO came out to BD0.386 per share.

                                  -   TRAFCO’s share is quoting at a premium of 3.6% to its fair value of BD0.386. Hence
                                      we maintain our earlier “HOLD” recommendation on TRAFCO’s stock.

                                 General Trading & Food Processing Company                                                        1
Global Research - Bahrain                                             Global Investment House


Recent Developments

-   TRAFCO signed a memorandum of understanding with Qatar Company for Meat and
    Livestock trading, Mawashi, to startup a BD0.98mn (US$2.6mn) company in Qatar.
    Mawashi and TRAFCO will each own a 50% share in the new firm which will specialize
    in food processing and trading in and outside Qatar.

-   On Jan 1st 2007, TRAFCO increased its holding in Bahrain Water Bottling and Beverages
    Company to 100% through the purchase of a 59% stake.

-   During 2006, TRAFCO decided to adopt a different strategy aiming at opening up small
    retail outlets in several neighborhoods and residential areas under the brand name of
    Metro instead of the hypermarket concept. The first outlet was inaugurated at Budaiya and
    3 more outlets are planned to be established by the end of 2007. According to TRAFCO’s
    Chairman they plan to have around 10 more stores across the country and meanwhile all
    the existing five branches will be shifted to the Metro brand name.

Analysis of 2006 Results

-   In 2006, TRAFCO reported total sales of BD23.3mn down by 6.1% from BD24.9mn reported
    in 2005. The drop in sales is attributable to a decline in the sales of fruits and vegetables
    division and the transfer of the basic supplying agreements to a different supplier.

-   Another major reason behind the drop in sales was the Danish products boycott which
    negatively affected the performance of one of the subsidiaries during the 1st half of 2006.
    However, the sales started to recover in the 2nd half of the year after the board of directors
    had decided to rename the company to Awal Dairy Company instead of Bahrain Danish
    Dairy Company. In addition, the recovery was supported by an intensified marketing
    campaign and the increased retail activity witnessed by most GCC markets.

-   Sales from imported foodstuff declined by 16.3% in 2006 to reach BD13.1mn from
    BD15.6mn reported in 2005 and its contribution to total sales has decreased to 56% from
    63% in 2005. While sales of dairy products increased by 12.1% in 2006, constituting 40%
    of total sales, to reach BD9.3mn compared to BD8.3mn reported in 2005.

Chart 1: Revenue Segmentation
                        2006                                        2005



         Others 4%                                     Others 4%




                                        Imported                                    Imported Food
     Dairy                                Food                                        Stuff 63%
    Products                            Stuff 56%
      40%


                                                         Dairy
                                                        Products
                                                          33%
Source: TRAFCO and Global Research



2                                                   General Trading & Food Processing Company
Global Research - Bahrain                                                 Global Investment House


-       TRAFCO’s net profit for 2006 stood at BD1.2mn against BD1.9mn in the previous year.
        The 34.5% decrease in profit was mainly attributed to the decline in sales, which resulted
        in a 5.3% net profit margin in 2006 as compared to 7.7% recorded in the previous year.

-        Selling, distribution and administrative expenses to sales ratio decreased from 18.5% in
        2005 to 18% in 2006. Cost to sales ratio has increased to 79.7% in 2006 from 78.6% in
        2005, accordingly the gross profit margin has decreased to 20.2% in 2006 against 21.3%
        reported in the previous year.

Chart 2: Operating Efficiency
         30                                                                                    81%
                                                                                               80%
         25                                                                                    79%
                                                                                               78%
         20
                                                                                               77%
BD mn




         15                                                                                    76%
                                                                                               75%
         10
                                                                                               74%
                                                                                               73%
          5
                                                                                               72%
          0                                                                                    71%
                  2002            2003               2004          2005                 2006
                   Revenue                    Cost of Sales                 Cost to Revenue

Source: TRAFCO and Global Research


-       At the end of 2006, TRAFCO’s total assets declined by 2.2% to reach BD27.6mn from
        BD28.2mn reported in the previous year. However, the company’s total assets have
        grown at a CAGR of 9.1% in the past four years.

-       Return on average assets declined to 4.5% in 2006 from 6.8% in 2005. Return on average
        equity also dropped to 7.0% in 2006 from 10.7% recorded in the previous year.

-       In 2006, the company’s share capital increased by 12.5% to reach BD6.3mn from
        BD5.7mn in 2005 on the back of issuing 6.9mn bonus shares.

Analysis of 1H-FY07 Results

-       TRAFCO reported a net profit of BD1.2mn in 1H-2007, a 66.9% increase over the
        BD0.7mn reported in the corresponding period of last year. Net profit grew by 113% in
        2Q-2007 as compared to the same quarter of the previous year.

-       The growth in profit came on the back of a growth in sales which reached BD14.5mn, an
        increase of 32.1% from BD10.9mn reported in 1H-2006.

-       Sales from imported food stuff, which formed 54.7% of total sales, increased by 24.7%
        in 1H-2007 to reach BD7.9mn as compared to BD6.3mn reported in the corresponding
        period last year. While dairy products and beverages, which contributed 42.4% to total
        sales, increased by 48.7% in 1H-2007 to reach BD6.1mn from B4.1Dmn reported in the
        corresponding period last year. The company recorded a gross profit margin of 22.8% in
        1H-2007 as compared to 18.9% in 1H-2006.


General Trading & Food Processing Company                                                        3
Global Research - Bahrain                                          Global Investment House



Table 1: Income Statement 1H-2007
                                            1H-       1H-       %    2Q-     2Q-        %
Amount in (BD’000)                        FY06      FY07 change FY06 FY07 change
Sales                                   10,954     14,466   32.1% 5,774 7,582 31.3%
Cost of Sales                           (8,889)   (11,169)  25.7% (4,597) (5,834) 26.9%
Gross Profit                              2,065     3,297 59.7% 1,177 1,748 48.5%
Other Income                                754       857   13.7%     213     170 -20.0%
S&A Expenses                            (1,043)   (1,231)   18.1%   (573) (399) -30.3%
Personnel Cost                          (1,032)   (1,230)   19.2%   (514) (260) -49.5%
Depreciation & Amortization               (138)     (189)   37.1%    (69) (623) 798.8%
Financial Charges                         (123)     (175)   42.2%    (65)    (96) 47.1%
Profit of the Group                         483     1,329 175.0%      169     541 220.5%
Minority Interest                           235     (130) -155.5%      49    (78) -259.6%
Net Profit                                  718     1,198 66.9%       217     463 113.0%
Source: TRAFCO


-   TRAFCO’s total assets have grown by 11.1% in 1H-2007 to reach BD30.6mn as compared
    to BD27.6mn recorded at the end of 2006. The main reasons behind this growth were a
    28.4% increase in inventories and a 33.9% increase in property, plant and equipment.

-   In the first half of 2007, available for sale investments slightly increased by 3.3% from
    BD10.1mn at the end of 2006 to reach BD10.5mn, constituting 34.2% of total assets.

-   On the liabilities side, total debt has increased by 96.1 % during the first half of 2007
    where bank overdrafts increased by 149.5% in 1H-2007 to reach BD1.6mn from BD0.6mn
    reported in the corresponding period of the previous year and term loans increased by
    63.2% in 1H-2007 to reach BD1.827mn from BD1.1mn reported in the corresponding
    period of the previous year.

Table 2: Balance Sheet 1H-2007
Amount in (BD’000)                         FY05          FY06      1H-FY07            YTD
                                                                                   Growth
PP&E                                       4,057         3,774         5,053         33.9%
Available for Sale Investments            10,978        10,146        10,477          3.3%
Inventories                                4,887         5,209         6,689         28.4%
Total Assets                              28,204        27,580        30,651        11.1%
Term Loans                                 1,678         1,119         1,827         63.2%
Bank Overdrafts                          913,082       651,901         1,626        -99.8%
Total Liabilities                          8,871         9,527        12,113        27.1%
Total Equity And Liabilities              28,204        27,580        30,651        11.1%
Source: TRAFCO




4                                              General Trading & Food Processing Company
Global Research - Bahrain                                           Global Investment House


Outlook and Valuation

-   Looking at the positive outlook of retail activity in the region we believe that TRAFCO
    has a potential for growth as the company has ambitious expansion plans. However, the
    capital expenditure plans of the company needs to be monitored. Also, the retail sector
    in the region has been growing at an annual rate of around 15% for the past few years
    which has attracted regional and international players into the market resulting in higher
    competition for local companies.

-   At its current market price of BD0.400 TRAFCO’s stock is trading at 20.0x its 2006
    earnings, and 14.5x its projected 2007 earnings.

-   Besides the revised projections, we have increased the risk-free rate assumed in our
    previous report from 6.45% to 6.62%. We have maintained a market risk premium of
    5.75% and a beta of 1. We have increased the terminal growth rate from 3% to 3.5% due
    to the positive outlook of retail activity in the region. The revised valuation parameters
    have resulted in a cost of equity of 12.37%. The combination of the revised projections
    and revised cost of equity have led to a value of BD0.408 per share.

-   Based on a forward P/E multiple of 10.7x for selected food services companies in the
    GCC and the 2007 projected EPS for the company, the peer valuation method resulted in
    a fair value of BD0.297 per share. Assigning an 80% weight to the DCF value, and a 20%
    weight to the relative value, the weighted average share value of TRAFCO came out to
    BD0.386 per share.

-   TRAFCO’s share is quoting at a premium of 3.6% to its fair value of BD0.386. Hence we
    maintain our earlier “HOLD” recommendation on TRAFCO’s stock.




General Trading & Food Processing Company                                                   5
                                            BALANCE SHEET
                                                                                                                                           TRAFCO
                                            Amount in BD                                          2004            2005            2006          2007 F          2008 F          2009 F          2010 F
                                              Bank Balances and Cash                           803,940       1,147,510         833,550       1,460,539       1,127,048       1,184,774       1,341,127
                                              Inventories                                    4,377,729       4,887,499       5,209,481       5,790,415       5,746,084       5,690,297       6,486,939




6
                                              Accounts Receivable and Prepayments            5,415,863       4,952,517       5,589,822       6,339,457       7,100,192       7,996,169       8,635,863
                                            Total Current Assets                            10,597,532      10,987,526      11,632,853      13,590,412      13,973,325      14,871,240      16,463,928
                                              Property, Plant, and Equipment                14,792,275      15,246,210      15,204,324      17,484,973      18,359,221      18,542,813      18,728,242
                                              Less: Depreciation                          (10,723,316)    (11,189,547)    (11,430,306)    (11,780,005)    (12,110,471)    (12,444,242)    (12,781,350)
                                              Net PPE                                        4,068,959       4,056,663       3,774,018       5,704,967       6,248,750       6,098,571       5,946,891
                                              Franchise, Application and Territory Fees         38,087          38,087          38,087          38,087          38,087          38,087          38,087
                                              Less: Amortisation                                (3,812)         (5,718)         (7,624)         (9,530)       (11,436)        (13,342)        (15,248)
                                              Deferred Exp on Trade Mark                        42,023          46,005          40,975          37,268          34,767          33,197          32,348
                                              Less: Amortisation                                                (9,164)         (9,908)         (9,012)         (8,407)         (8,027)         (7,822)
                                              Net Intangibles                                  76,298           69,210          61,530          56,813          53,011          49,915          47,365
                                              Investments In Subsidiaries & Associates      2,028,094        2,113,228       1,966,044       2,033,109       2,089,325       2,132,018       2,158,064
                                                                                                                                                                                                          Global Research - Bahrain




                                              Other Investments                            10,731,491       10,977,619      10,145,540      10,500,559      10,871,293      11,258,722      11,663,902
                                            Total Assets                                   27,502,374       28,204,246      27,579,985      31,885,860      33,235,704      34,410,466      36,280,151
                                            Current Liabilities
                                              Accounts Payable And Accruals                 3,754,081       3,757,025       5,104,617       5,848,904       5,876,677       5,690,297       6,105,354
                                              Bank Overdrafts                                 925,990         913,082         651,901       1,694,943       1,830,538       1,922,065       2,018,168
                                              Current Portion of Long Term Loan               700,339         811,728         828,995         994,794       1,044,534       1,096,760       1,151,598
                                              Import Loans                                    815,140         944,631         788,804       1,538,168       1,661,221       1,794,119       1,883,825
                                            Total Current Liabilities                       6,195,550       6,426,466       7,374,317      10,076,809      10,412,970      10,503,241      11,158,945
                                             Term Loans                                     1,863,694       1,677,759       1,119,472       1,903,102       2,055,351       2,219,779       2,330,768
                                             Loan From A Subsidiary                           200,000         200,000         450,000         450,000         450,000         450,000         450,000
                                             Employees’ End of Service Benefits               488,143         567,122         583,081         623,897         655,092         687,846         722,238
                                            Total Liabilities                               8,747,387       8,871,347       9,526,870      13,053,808      13,573,412      13,860,866      14,661,951
                                              Share Capital                                 5,053,641       5,559,005       6,253,880       6,253,880       6,253,880       6,253,880       6,253,880
                                              Treasury Shares                               (279,225)       (304,214)       (366,560)       (366,560)       (366,560)       (366,560)       (366,560)
                                              Share Premium                                 1,104,863       1,104,863       1,104,863       1,104,863       1,104,863       1,104,863       1,104,863
                                              Proposed Bonus Shares                           505,364               -               -               -               -               -               -
                                              Statutory Reserve                             1,412,966       1,603,530       1,728,330       1,901,088       2,106,367       2,331,765       2,588,970
                                              General Reserve                                 700,000         700,000         800,000         850,000         900,000         950,000       1,000,000
                                              Retained Earnings                               733,405         572,758         441,597         455,355         604,274         783,371       1,010,178
                                              Retained Earnings Not Distributable                   -         127,703         127,703         127,703         127,703         127,703         127,703
                                              Proposed Appropriations                         858,822       1,748,016       1,254,360       1,541,062       1,698,597       1,849,480       2,088,039
                                              Cumulative Changes in Fair Value              7,247,215       7,178,762       5,855,987       5,855,987       5,855,987       5,855,987       5,855,987
                                            Shareholder’s Equity                           17,337,051      18,290,423      17,200,160      17,723,378      18,285,111      18,890,488      19,663,059
                                              Minority Interest                             1,417,936       1,042,476         852,955       1,108,675       1,377,181       1,659,112       1,955,140
                                            Total Equity & Liabilities                     27,502,374      28,204,246      27,579,985      31,885,860      33,235,704      34,410,466      36,280,151
                                                                                                                                                                                                          Global Investment House




General Trading & Food Processing Company
                                            INCOME STATEMENT
                                                                                                                                              TRAFCO
                                            Amount in BD                                                2004           2005           2006         2007 F         2008 F         2009 F         2010F
                                             Sales                                                24,509,473     24,866,972     23,344,451     27,546,452     30,852,026     33,937,229     36,652,207
                                             Cost of Sales                                      (18,473,991)   (19,560,923)   (18,625,075)   (21,348,500)   (23,833,190)   (25,961,980)   (27,855,678)
                                            Gross Profit                                           6,035,482      5,306,049      4,719,376      6,197,952      7,018,836      7,975,249      8,796,530
                                                                                                                                                                                                         Global Research - Bahrain




                                            Other Income                                             319,234        335,647        290,328        319,361        351,297        386,427        425,069
                                            Selling and Distribution Costs                       (1,804,622)    (1,539,291)    (1,357,573)    (1,652,787)    (1,851,122)    (2,036,234)    (2,199,132)
                                            Administrative Expenses                                (970,685)      (825,723)      (778,852)      (909,033)    (1,018,117)    (1,119,929)    (1,209,523)
                                            Personnel cost                                       (2,167,892)    (2,243,733)    (2,063,338)    (2,334,445)    (2,492,954)    (2,798,279)    (3,096,772)
                                            Depreciation and Amortisation                          (277,933)      (274,768)      (275,880)      (350,709)      (331,767)      (335,297)      (338,809)




General Trading & Food Processing Company
                                            Profit from Operations                                 1,133,584        758,181        534,061      1,270,338      1,676,173      2,071,937      2,377,362

                                              Financial Charges                                   (129,148)      (208,237)      (253,824)      (334,066)      (340,038)      (340,592)      (350,220)
                                              Share of results of associates                        299,864        157,890         17,880        181,574        190,652        200,185        210,194
                                              Investment Income                                     446,097        847,395        792,088        840,045        760,991        562,936        583,195
                                              Miscellaneous income                                    (150)         17,141         18,155         25,407         33,523         41,439         47,547
                                            Profit Before M.I. & Extraordinary Items              1,750,247      1,572,370      1,108,360      1,983,298      2,321,301      2,535,905      2,868,079
                                            Extraordinary Items and Impairment                            -              -       (30,841)              -              -              -              -
                                            Profit of the Group                                   1,750,247      1,572,370      1,077,519      1,983,298      2,321,301      2,535,905      2,868,079
                                            Profit/Loss attributable to minority shareholders      (66,332)        333,266        170,480      (255,720)      (268,506)      (281,931)      (296,028)
                                            Net Profit                                            1,683,915      1,905,636      1,247,999      1,727,578      2,052,795      2,253,974      2,572,051
                                                                                                                                                                                                         Global Investment House




7
                                            CASH FLOW STATEMENT
                                                                                                                                           TRAFCO
                                            Amount in BD                                                     2004        2005         2006   2007 F          2008 F      2009 F      2010 F
                                            Operating Activities




8
                                              Profit for the Year                                       1,774,463    1,750,247    1,572,370    1,077,519   1,727,578   2,052,795   2,253,974
                                              Adjustments for:
                                              Provision Against Investments
                                              Depreciation                                                481,480      527,902      524,611      561,060     350,709     331,767     335,297
                                              Amortisation                                                   1,906        1,906        1,906       1,906           -           -           -
                                              Provision For Employees’ End of Service Benefits             74,883       96,555      114,072       98,839           -           -           -
                                              Finance Cost                                                110,457      129,148      208,237      253,824           -           -           -
                                              Investment Income                                         (388,833)    (446,097)    (847,395)    (792,088)           -           -           -
                                                                                                                                                                                               Global Research - Bahrain




                                              (Profit) on Sale of Plant And Equipment                      (5,667)      (6,879)      (5,290)    (13,873)           -           -           -
                                              (Profit) on Sale of Investments                                                                          -           -           -           -
                                              Net Loss From Investments In Associates & Subsidiaries     (230,103)   (299,864)    (157,890)     (17,880)           -           -           -
                                              Intangible Assets Write Off                                        -            -       9,164        9,908           -           -           -
                                              Impairment                                                         -            -           -       30,841           -           -           -
                                            Operating Profit Before Working Capital Changes              1,818,586   1,752,918    1,419,785    1,210,056   2,078,287   2,384,563   2,589,270
                                              Decrease/Increase In Inventories                           (119,230)    (17,415)    (509,770)    (321,982)   (580,934)      44,331      55,787
                                              Accounts Recievable and Prepayments                      (1,161,558)   (324,664)      463,346    (637,305)   (749,635)   (760,735)   (895,977)
                                              Decrease In Unsecured Loans                                        -            -           -            -           -           -           -
                                              Accounts Payable and Accruals                                530,822     410,957        2,944    1,347,592     744,287      27,773   (186,380)
                                              Bank Loans                                                         -            -           -            -           -           -           -
                                              Current Portion of Long-Term Loans                                 -            -           -            -     165,799      49,740      52,227
                                              Short Term Loans                                                   -            -           -            -     749,364     123,053     132,898
                                            Cash From Operations                                         1,068,620   1,821,796    1,376,305    1,598,361   2,407,167   1,868,725   1,747,825
                                              Charitable Donations                                        (25,000)    (25,000)     (30,000)     (40,000)    (30,000)    (30,000)    (30,000)
                                              Finance Cost Paid                                          (110,457)   (129,148)    (208,237)    (253,824)           -           -           -
                                              Directors Remuneration Paid                                 (53,500)    (69,000)     (88,000)     (99,000)    (79,000)    (79,000)    (79,000)
                                              Employees’ End of Service Benefits Paid                     (10,192)      (8,690)    (35,093)     (82,880)      40,816      31,195      32,755
                                            Net Cash From Operating Activities                             869,471   1,589,958    1,014,975    1,122,657   2,338,983   1,790,920   1,671,580
                                            Investing Activities
                                               Purchase of Property, Plant and Equipment               (1,387,416)   (812,460)    (517,963)    (310,041) (2,280,649)   (874,249)   (183,592)
                                                                                                                                                                                               Global Investment House




General Trading & Food Processing Company
                                               Proceeds From Sale of Plant & Equipment                       7,174      21,831       10,938       14,658           -           -           -
                                               Purchase of Intangible Assets                              (18,777)    (18,548)      (3,982)      (4,134)       3,707       2,501       1,570
                                            CASH FLOW STATEMENT - Continued
                                                                                                                                                 TRAFCO
                                            Amount in BD                                                         2004       2005          2006       2007 F     2008 F      2009 F      2010 F
                                              Purchase of Investment In Subsidiaries                          (4,002)           -            -            -    (67,065)    (56,216)    (42,694)
                                              Purchase of Investments                                       (586,922)   (871,656)    (857,518)    (748,804)   (355,019)   (370,735)   (387,428)
                                              Proceeds From Sale of Investments                                77,280      76,512      872,355      597,598           -           -           -
                                               Dividends Received From Subsidiaries and Associates              37,500      85,000    100,000      123,500           -           -            -
                                               Dividend Income                                                 334,759     389,999    475,542      505,121           -           -            -
                                                                                                                                                                                                  Global Research - Bahrain




                                               Interest Income                                                    2,121          -          -                        -           -            -
                                            Net Cash (Used In) Investing Activities                        (1,538,283) (1,129,322)     79,372      177,898 (2,699,025) (1,298,698)    (612,144)
                                            Financing Activities
                                              Purchase of Treasury Shares                                       (5,555)          -    (24,989)    (62,346)         -           -           -
                                              Dividends Paid                                                 (702,954) (439,095)     (740,822) (814,141) (1,095,360) (1,382,062) (1,539,597)




General Trading & Food Processing Company
                                              Loan From a Shareholder In a Subsidiary                                      200,000           -           -         -           -           -
                                              Dividends Paid To Minority Shareholders                                 -   (27,000)    (27,000)    (30,000)         -           -           -
                                              Proceeds From New Term Loans                                            -          -           -           -         -           -           -
                                              Minority Shareholders Interest                                          -          -           -           -   255,720     268,506     281,931
                                              Repayment of Term Loans                                           (2,439)   (89,394)   (675,612) (541,020)           -           -           -
                                             Decrease In Unsecured Loans/ Loan From A Minority Shareholder            -          -           -     250,000         -           -           -
                                              Increase In Term Loans                                           509,223 1,206,779       601,063           -   783,630     152,248     164,428
                                              Increase In Short Term Loans                                     634,257 (434,515)       129,491 (155,827)           -           -           -
                                            Net Cash (Used In) Financing Activities                            432,532     416,775   (737,869) (1,353,334)  (56,010) (961,308) (1,093,237)
                                            (Decrease) Increase In Cash and Cash Equivalents                 (236,280)     877,411     356,478    (52,779) (416,052) (469,087)      (33,801)
                                            Cash & Cash Equivalents At The Beginning of Year                 (529,370) (999,461)     (122,050)     234,428   181,649 (234,403) (703,490)
                                            Cash & Cash Equivalents At End of Year                           (765,650) (122,050)       234,428     181,649 (234,403) (703,490) (737,291)
                                            Cash Plus Bank Overdraft                                           332,050     803,940   1,147,510     833,550 1,460,539 1,127,048 1,184,774
                                                                                                                                                                                                  Global Investment House




9
          Global Research - Bahrain                                                       Global Investment House


FACT SHEET
                                                                                    TRAFCO
                                                 2004        2005          2006       2007 F    2008 F    2009 F    2010 F

PROFITABILITY ANALYSIS
 - Total Asset Turnover                          1.01         0.89          0.84        0.93      0.95      1.00      1.04
 - Gross Profit Margin (%)                     24.6%        21.3%         20.2%       22.5%     22.8%     23.5%     24.0%
 - Operating Margin (%)                         4.6%         3.0%          2.3%        4.6%      5.4%      6.1%      6.5%
 - Net Profit Margin (%)                        6.9%         7.7%          5.3%        6.3%      6.7%      6.6%      7.0%
 - Return on Average Assets (%)                 6.9%         6.8%          4.5%        5.8%      6.3%      6.7%      7.3%
 - Return on Average Equity (%)                11.4%        10.7%          7.0%        9.9%     11.4%     12.1%     13.3%

LIQUIDITY RATIOS
 - Current Ratio                                 1.71         1.71          1.58        1.35      1.34      1.42      1.48
 - Quick Ratio                                   1.00         0.95          0.87        0.77      0.79      0.87      0.89
 - Equity Multiplier                             1.59         1.54          1.60        1.80      1.82      1.82      1.85

ACTIVITY RATIOS
 - Inventory Turnover Ratio                       4.4          4.2           3.7         3.9       4.1       4.5       4.6
 - Days Inventory                                82.5         86.4          98.9        94.0      88.3      80.4      79.8
 - Receivables Turnover Ratio                     4.6          4.8           4.4         4.6       4.6       4.5       4.4
 - Days Receivables                              79.1         76.1          82.4        79.0      79.5      81.2      82.8
 - Payables Turnover Ratio                        5.0          5.2           4.2         3.9       4.1       4.5       4.7
 - Days Payables                                 72.3         70.1          86.8        93.6      89.8      81.3      77.3

GROWTH RATIOS
 - Revenue                                     12.4%         1.5%          -6.1%      18.0%     12.0%     10.0%      8.0%
 - Net Profit                                  15.4%        13.2%         -34.5%      38.4%     18.8%      9.8%     14.1%
 - Asset Growth                                29.5%         2.6%          -2.2%      15.6%      4.2%      3.5%      5.4%

RATIOS USED FOR VALUATION
 - Number of Shares In Issue 50,536,410 55,590,050 62,538,800 62,538,800 62,538,800 62,538,800 62,538,800
   - Market Price Per Share (Fils) *              380          440           300         400       400       400       400
   - EPS (Fils)                                  33.3         34.3          20.0        27.6      32.8      36.0      41.1
   - Book Value Per Share (Fils)                343.1        329.0         275.0       283.4     292.4     302.1     314.4
   - Dividend Payout Ratio                     74.0%        79.2%         87.8%       80.0%     75.0%     75.0%     75.0%
   - P/E Multiple                                11.4         12.8          15.0        14.5      12.2      11.1        9.7
   - P/BV Multiple                                 1.1          1.3           1.1         1.4       1.4       1.3       1.3
* Market price for 2007 onwards is market price as of August 20th, 2007




          10                                                       General Trading & Food Processing Company
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Disclosure Checklist
Company                          Recommendation               Ticker              Price           Disclosure
General Trading & Food                 HOLD                GTFP.BH               400fils             1, 10
Processing Co. B.S.C.
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   or anyone else for the preparation of this report.
2. The company being researched holds more than 5% stake in Global Investment House.
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