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.