Monday, September 08, 2014

NTPM: Bottom-line dropped further

Result Update

For QE31/7/2014, NTPM's net profit dropped by 40% q-o-q or 42% y-o-y to RM7 million while revenue was mixed- dropped 3% q-o-q but inched up 0.4% y-o-y to RM132 million.  The poorer bottom-line was due to decrease in sales during the financial quarter and gain on foreign exchange recorded in the preceding quarter.

Table: NTPM's last 8 quarterly results

For QE31/7/2014, NTPM's NP margin dropped below 8%!


Chart 1: NTPM's last 36 quarterly results

Valuation

NTPM (closed at RM0.80 last Friday) is now trading  at a PE of 18.6 times (based on last 4 quarters' EPS of 4.3 sen). At this PE multiple, NTPM is deemed fairly valued.

 Technical Outlook

NTPM has broken below its long-term uptrend line, SS at RM0.88 in June (see Chart 2). In the last big rally in 2008, NTPM went into a long slumber after it broke below the 12 & 24-w average line. NTPM has done so again a few weeks ago. Thus, the technical outlook for the stock is bearish.


Chart 2: NTPM's weekly chart as at Sep 5, 2014 (Source: Tradesignum)


Chart 2: NTPM's monthly chart as at Sep 5, 2014 (Source: Chartnexus)

Conclusion

Based on poorer financial performance, high valuation & bearish technical outlook, NTPM is rated a REDUCED.

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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5 comments:

  1. KSMonday, September 08, 2014 10:48:00 AM

    Hi.
    What you think about BJ Corp?

    Thank you.

    ReplyDelete
  2. Alex LuMonday, September 08, 2014 2:27:00 PM

    Hi Kim Soon

    BJCorp has a strong support at RM0.50. The long-term downtrend line resistance is at RM0.52-0.53. If it can break above RM0.53, the next upleg could begin.

    Having said that,we had seen the stock traded above the downtrend line before but those breakouts did not sustain. So it can be quite tricky to trade on this stock.

    However the group has a string of successes in the past 1-2 years and BJCorp would eventually get into the radar of investors & punters. When it happens, it would finally take off.

    ReplyDelete
  3. UnknownMonday, September 08, 2014 4:20:00 PM

    Hi Alex, what's your opinion on Menang (1694)Any idea of this share? Is it reach bottom limit and is time to enter? Thanks.

    ReplyDelete
  4. Alex LuTuesday, September 09, 2014 8:07:00 AM

    Hi Chin th

    Menang appears to have broken below its intermediate uptrend line at RM1.04.

    With this breakdown, Menang is likely to move either sideways or downtrend.

    Based on this negative outlook, you may want to reduce your position in the stock.

    ReplyDelete
  5. UnknownTuesday, September 09, 2014 9:20:00 AM

    thanks, Alex

    ReplyDelete