NTPM’s 9MFY13 results were within our estimates, representing 77.4% of our full-year numbers. Revenue and net profit rose 8% and 10% y-o-y respectively on stronger sales and higher product margins from its personal care and paper products units. The company has proposed a 1.45 sen single-tier interim dividend. Maintain BUY, with our FV unchanged at RM0.55, based on 13x FY13 EPS.
In line. NTPM’s turnover grew by 8% y-o-y from RM334.2m to RM360.9m, largely attributed to a topline growth of 47.0% in its personal care segment, which offset the tissue products segment’s negative revenue growth (-1.2%) due to weaker exports. The ‘Dragon Baby’ boom lifted diaper sales domestically, translating into higher sales for the personal care segment. The group’s earnings (+10% y-o-y) were bolstered by better PBT from both the personal care and paper products segments. Meanwhile, PBT in the personal care segment surged 90.5% y-o-y, fuelled by higher contribution from the sale of diapers while PBT for tissue products expanded by 8.4% y-o-y, supported by higher margins. Vis-à-vis the preceding quarter, revenue and net profit rose by 7.6% and 12.2% respectively.