NTPM tissue product sales decline

FY30/4/10
Financial Result
Compare 4Q10 with 4Q09, NTPM recorded a marginally lower revenue(93.4mil vs 95.1mil), profit before tax(17.4mil vs 18.3mil) and net income also sees a drop from 15mil to 14.2mil this FY. The decline in the sales of tissue product lower down the revenue, subsequently affect the net income. Increase in cost of raw materials also affect net income.
However, FY10 results has continue to grow from FY09. Revenue growth 6.84% to 383.1mil from 358.6mil last FY. EPS also increase from 4.1cent preceding year to 5.3cent current year. Company continue to declare generous dividend as to award investors.
*Single digit revenue growth is the 1st time for the past five years.

   
Technical Outlook
Share price has been moving pretty consistently between support (RM0.54)and resistance line(RM0.61). For the past 9 months, we see retrenchment after every rally. Will it do the same this time?

Stock Valuation
With EPS of RM0.053, NTPM is trading at PE11x(today closing RM0.585). With this multiple, i think NTPM is fully value.

Overall
NTPM use to be a fundamentally strong company, and i think it is still be. It is a recession proof stock we can retain during economic tough time. However, FY10 growth of only 6.84% leave me wondering future of the company as growth company. Therefore, i will leave it alone for now.

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LONBISC financial result review

FY 31/03/10
Financial Result
For the 3Q ending 31/03/10, LONBISC achieved a profit before tax of RM4.8m at the back of RM50.9m in revenue. For the same quarter preceding year, company profit before tax stood at RM4m with RM47.7m revenue. EPS for current quarter drop 10.6% from RM0.058 to RM0.046, basically due to increase in company shares through ESOS.

However, company revenue drop 6.7% from RM54.5m recorded during preceding quarter. Profit before tax also decrease 8.6%.

Technical Outlook
Short term, i don't see any upside for LONBISC. However, it has a strong support(7months) at RM1.00, which is also a psychological support. Any break under will triangle a drop to the next level of RM0.95 then RM0.88 according to Fibonacci retrenchment. 

Stock Valuation
For the last twelve trailing month, LONBISC earning per share is RM0.21. With today's closing of RM1.03, it is trading at P/E 4.9, which is very attractive.
 
Overall
I'm pretty satisfy with the company 3Q10 financial result. It's is fundamental good to be consider a crisis resistant stock, where i don't think overseas economy uncertainty will effect them much. Strong support at RM1.00 also is a backstop  to accumulate this stock.  Don't forget to defend tough!!

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