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Tuesday, December 15, 2015

NTPM: Quarterly Earnings Soared to New High!

Result Update

For QE31/10/2015, NTPM's net profit increased by 32% q-o-q or 85% y-o-y to RM17.0 million while revenue was increased by 6% q-o-q or 11% y-o-y to RM152.6 million. Profits rose due to the increase in sales and improvement in margin. Revenue increased y-o-y mainly due to the increase in sales of personal care products.


Table: NTPM's last 8 quarterly results

NTPM's net profit of RM17.0 million for QE31/10/2015 has surpassed the previous highest quarterly net profit of RM16.6 million recorded in QE31/1/2010.


Chart 1: NTPM's last 41 quarterly results

Valuation

NTPM (closed at RM0.745 yesterday) is now trading  at a PE of 14.6 times (based on last 4 quarters' EPS of 5.1 sen). At this PE multiple, NTPM is deemed fairly valued.

Technical Outlook

NTPM is in a long-term uptrend line, SS with support at RM0.68-0.70. Its immediate resistance is at the horizontal line at RM0.80. If it can surpass this resistance, it may go to RM0.90.


Chart 2: NTPM's monthly chart as at Dec 14, 2015 (Source: ShareInvestor.com)

Conclusion

Based on satisfactory financial performance, fair valuation & positive technical outlook, NTPM's rating is upgraded from REDUCED to BUY.

Note:
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, NTPM.

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