NTPM financial result update

FY31/7/10
Financial Result
NTPM among the first announce its FY31/7/10(due 30/9/10) to announce its 1Q result.
For the quarter under review, its revenue stay flat at RM94.5m, however PBT drop slightly to RM16.6m from RM18.4m recorded 1Q09. The decrease of RM1.8m mainly due to increase in raw material cost.

To compare to preceding quarter, we can see a similarity where revenue rise a little bit but PBT decrease because of the same reason mention above.

I find it interesting to see its current assets and total liabilities increase at the same time. In further look, company has borrow another RM19.37m from the bank, but no explanation given  why they need more cash?

Technical Outlook
NTPM share price is trap between support(RM0.56) and resistance(RM0.63) line. This two line are very strong as i cannot see the price to go no-where then flat(like their earning) in the near future.

Stock Valuation
With today closing of RM0.595, it is trading at P/E 11.7x(eps RM0.051ttm). I think NTPM is fully value with this multiple.

Overall
Company top line has been remain stable but bottom line has drop slightly, due to increase of raw material cost. Over the short term, it is a bit hard for company to offset this additional cost to the customer. Unless it can explore some new market or product, company profit might stay flat. Therefore, it withdraw from my "Growth" list of company but remain a good company for long term investor.