This article first appeared in The Edge Financial Daily, on November 6, 2015.

Tien Wah Press Holdings Bhd (-ve)

SHARES of Tien Wah (Fundamental: 1.4/3.0, Valuation 2.0/3.0), a tobacco related company, closed down 1.1% to RM1.80 yesterday, after rising 4.6% a day earlier.

This came after British American Tobacco (BAT) Malaysia announced a price hike for all its cigarette brands, starting Wednesday, in response to an increase in cigarette excise by more than 40%.

Tien Wah is primarily engaged in the printing services for tobacco packaging and cigarette filters. BAT Singapore remained its largest client in 2014, accounting for 45.8% of revenue. 

For 1H2015, sales fell 1.9% to RM174.0 million while net profit dropped 16.5% to RM7.6 million, due to higher costs and change in product mix.

In May, Tien Wah entered into a strategic joint venture agreement, whereby it will dispose of 50% stake in its 100% owned subsidiary, Toyo (Viet) Paper Product Co. Ltd, to DOFICO for USD1.6 million. The move will see Tien Wah securing long term printing business from a major tobacco company in Vietnam.