Monday, December 16, 2013

NTPM- profit margin starting to expand

Result Update

For QE31/10/2013, NTPM's net profit increased by 34% q-o-q or 31% y-o-y to RM16.0 million while revenue inched up 2% q-o-q or 7% y-o-y to RM127 million. The improvement in top-line & bottom-line came from both the paper products & personal care products divisions. 

Table: NTPM's last 8 quarterly results

NTPM's profit margin is beginning to improve and this could set the stage for an increase in its net profit. The last time this happened was in early 2008 which led to a rally in NTPM.

Chart 1: NTPM's last 33 quarterly results


NTPM (closed at RM0.75 last Friday) is now trading  at a PE of 15.3 times (based on last 4 quarters' EPS of 4.9 sen). At this PE multiple, NTPM is deemed fairly valued.

Technical Outlook

NTPM is in an uptrend after it broke above the horizontal line at RM0.62 in September.

Chart 2: NTPM's weekly chart as at Dec 13, 2013 (Source: Tradesignum)


Despite trading at its fair valuation, NTPM could continue its uptrend based on improving financial performance & still-positive technical outlook,

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.


Jim said...

Hi Alex,

Can you comment on BJASSET?
Will Berjaya Assets Bhd’s share price jumped on hopes that the company will reap long-term benefits from the disposal of a 20% stake in key unit Berjaya Times Square Sdn Bhd (BTS) to the Sultan of Johor?


OS said...

Hi Alex , what do u think of this counter "success" transformer berhad . Thanks

Alex Lu said...

Hi Jim

BJASSET's recent development is worth watching. This may have a connection with future development to be undertaken by a related company, Berjaya Waterfront in Johor.

Since BJAsset is trading near its support at RM0.85-0.90, taking a small position maybe a good idea.

Alex Lu said...


Success has broken above the RM1.30 resistance. It may revisit the 2010 high of RM1.38.

Valuation is reasonable (maybe attractive) since PE is at 5 times.

I think it is worth considering for investment.