NTPM: Earnings rose

Result Update

For QE31/7/2017, NTPM's net profit increased by 35% q-o-q or 29% y-o-y to RM12 million while revenue increased by 11% q-o-q or 16% y-o-y to RM176 million. Revenue increased y-o-y mainly due to the increase in sales of Tissue and Personal Care Products, especially Tissue segment. The increased revenue led to higher profits.

 
Table: NTPM's last 8 quarterly results


Graph: NTPM's last 48 quarterly results

Valuation

NTPM (closed at RM0.785 last Thursday) is now trading  at a PE of 16.7 times (based on last 4 quarters' EPS of 4.7 sen). NTPM pays a decent dividend, with dividend yield at 3%. At this PER, NTPM is deemed fairly valued.

Technical Outlook

NTPM is in a medium-term uptrend line, with support at RM0.75. It is also in a long-term uptrend line since 2006.


Chart 1: NTPM's weekly chart as at Sep 21, 2017 (Source: Malaysiastock.biz)


Chart 2: NTPM's chart as at Sep 21, 2017 (Source: Malaysiastock.biz)

Conclusion

Based on satisfactory financial performance & positive technical outlook, NTPM is a good long-term investment.

Note:

I hereby confirm that I do not have any direct interest in the security or securities mentioned in this post. However, I could have an indirect interest in the security or securities mentioned as some of my clients may have an interest in the acquisition or disposal of the aforementioned security or securities. As investor, you should fully research any security before making an investment decision.