Tomypak- a proxy to the consumer play

Background

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.

Valuation

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)

Conclusion

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

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, Tomypak.