NSTP tested its 1998 low

NSTP has just announced its results for Q2008 ended 30/9/2008. Its net profit increased by 46.7% q-o-q or 23.3% y-o-y to RM16.1 million, while turnover was relatively unchanged at RM149 million. The sharply higher net profit was attributable to higher advertisement revenue, higher share of profit from associates & an exceptional gain of RM4.7 million from disposal of property.



NSTP (closed at RM1.05 yesterday) is now trading at PE of 4.8 times (based on last 4 quarters' EPS totaling 22 sen) or at a Price to Book of 0.2 times (based on NTA of RM4.50 per share). At these multiples, NSTP is deemed very attractive.

NSTP share price has been drifting lower since making an all-time high of RM18.60 in March 2000 (courtesy of the dotcom bubble). Its most recent rally of any significance was in November-December 2006 when the share price peaked off at RM3.20. Recently, NSTP hit a low of RM0.99 on October 29 & again at RM0.995 on November 20.


Chart: NSTP's monthly chart as at Nov 24, 2008 (source: Quickcharts)

Based on attractive valuation, improving financial performance & strong technical support at RM1.00, I believe NSTP could be a good stock for long-term investing.