Hot Stock NTPM soars 10.19% on continuing profit contribution indication

by **Cals** Thu 17 Dec 2015, 00:42

Hot Stock

[size=28]NTPM soars 10.19% on continuing profit contribution indication

By Sangeetha Amarthalingam / theedgemarkets.com | December 16, 2015 : 12:41 PM MYT

KUALA LUMPUR (Dec 16): Two days after reporting exceptional second quarter ended Oct 31, 2015 (2QFY16) results, tissue product manufacturer NTPM Holdings Bhd ([You must be registered and logged in to see this image.] Valuation: 1.10, Fundamental: 1.30)'s counter continues climbing, charting a 10.19% rise today.

At 12.06pm, NTPM went up eight sen at 86.5 sen with 6.08 million shares done, for a market capitalisation of RM881.7 million.

Interpacific Securities remisier Sam Ng told theedgemarkets.com that a director of the company was purchasing shares, which for investors was an indication of continuing profit contribution.

"NTPM did exceedingly well in its 2QFY16. Investors notice that [its] director is also purchasing shares. This could also be an indication that the company would see continuing profit contribution," he said.

Yesterday, its chairman Datuk Teoh Boon Beng purchased 550,000 shares via open market acquisition.

Revenue for the quarter rose 10.6% to RM152.63 million from RM138.09 million a year earlier, due to increase in sales of personal care products.

For the six months ended Oct 31, 2015 (1HFY16), net profit climbed 84.9% to RM29.96 million or 2.7 sen per share from RM16.2 million or 1.4 per share in 1HFY15; while revenue rose 9.5% to RM296.03 million from RM270.34 million a year ago.

On a segmental basis, its paper products segment saw a 5.4% year-on-year increase in revenue to RM200.9 million from RM190.6 million; while pre-tax profit rose 66.7% to RM32.1 million from RM19.3 million on higher sales and improved margins.

Meanwhile, its personal care products segment posted a revenue of RM95.1 million, up 19.3% from RM79.7 million a year earlier; while net profit almost tripled to RM9 million from RM3.1 million in the previous year.

NTPM manufactures tissue products, such as facial tissue, toilet tissue, kitchen towel rolls and napkins. It also does personal care products such as feminine hygiene products, cotton products, baby diapers and incontinent products.

(Note: The Edge Research's fundamental score reflects a company's profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)
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