Stock With Momentum: NTPM Holdings

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This article first appeared in The Edge Financial Daily, on December 17, 2015.


NTPM Holdings Bhd (-ve)

SHARES of NTPM (Fundamental: 1.3/3, Valuation: 1.1/3) closed 11.5% higher at 87.5 sen yesterday on heavy volume. The stock has risen by 17.4% since announcing its 2QFYApril2016 earnings results on Monday. 

For 2QFY2016, revenue rose 10.5% y-y to RM152.6 million, due mainly to 15.1% sales growth for personal care products. Net profit surged 85.3% to RM17.0 million, boosted by higher sales and better profit margins from both paper and personal care products.

Penang-based NTPM commands over 55% share of Malaysia’s tissue market and is best known for its popular Premier and Royal Gold brands. The company also produces personal care products such as sanitary products (Intimate), baby and adult diapers (Diapex), and cotton products (Premier). Tissue paper products account for 70% of its revenue with the remaining from personal care products. 

NTPM intends to increase its presence in Indo-China, following completion of its RM80 million manufacturing facilities in Vietnam in FY2015.