Monday, October 29, 2012

Tomypak- a proxy to the consumer play


Tomypak Holdings Bhd ('Tomypak') is one of the leading converter for flexible food packaging materials in Malaysia. 
Recent Financial Results

Based on its last 4 years result, Tomypak's financial performance is deemed satisfactory. For QE30/6/2012, Tomypak's net profit increased by 55% q-o-q or 98% y-o-y to RM5.5 million while its revenue rose 7% q-o-q or 2% y-o-y to RM56 million. The sharply higher bottom-line was attributed to better sales mix.

Table 1: Tomypak's last 8 quarterly results

Chart 2: Tomypak's last 19 quarterly results

Financial Position

As at 30/6/2012, Tomypak's financial position is deemed satisfactory. Current ratio stood at 2.2 times while gearing ratio stood at 0.25 time.


Tomypak (closed at RM1.21 last Friday) is now trading at a PE of 9 times (based on last 4 quarters' EPS of 13.43 sen). Its dividend yield is quite attractive at 5.4%. At these multiples, Tomypak is deemed fairly valued.

Technical Outlook

Tomypak has been moving sideway for slightly more than 2 years. The stock may surge & test its high of RM1.34 recorded in July 2010. On weakness, it may pullback to its 20-week EMA line at RM1.05. This is a stock which one can buy on weakness or on breakout.

Chart 3: Tomypak's weekly chart as at Oct 25, 2012 (Source: Quickcharts)


Based on good financial performance & reasonable valuation, Tomypak is another good proxy to gather a foothold in the consumer sector.

In addition to the disclaimer in the preamble to my blog, I hereby confirm that I do not have any relevant interest in, or any interest in the acquisition or disposal of, Tomypak.


Anonymous said...

Hi Alex-I have both tommy and diaboci(got it com bonus)Waiting tomy to touch rm135 and diaboci at 280.Then i will exist.By the way good to hear your voice at 89.9.U sounded boyish!

Alex Lu said...

Hi charles leong

Those are good level to consider selling. All the best.

Alex Lu said...

Hi charles leong

And, yes that was me on BFM. I must admit that I have a high pitch voice.