Stock With Momentum: NTPM Holdings

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This article first appeared in The Edge Financial Daily, on January 22, 2016.


NTPM Holdings Bhd (-ve)

TISSUE and personal care products maker NTPM (Fundamental: 1.3/3, Valuation: 1.1/3) closed 3.6% lower to 94 sen on heavy volume yesterday. The stock has surged 26% since announcing its 2QFYApr16 results on Dec 14, 2015.

For 2QFY2016, revenue rose 10.5% y-o-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 for 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. Tissue paper products account for 70% of its revenue with the remaining from personal care products.

NTPM intends to increase its presence in Indochina, following the completion of its RM80 million manufacturing facilities in Vietnam in FY2015. The stock trades at a trailing P/E of 19.4 times and 2.78 times book value.