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Thursday, January 23, 2014

Public Bank positive on NTPM with "outperform" rating (Edge)

In its initial coverage of the company, the research house said the company is supported by its strong market share position, expanding operation, and effective product diversification.

“NTPM has invested USD19.7 million (RM65.9 million) to commission an office and two warehouses housing two paper-making machines on 10 hectares of land in Ho Chi Minh City,” said the research team.

It has also recently secured contracts with US-based company Seaman Paper Co. to supply wrapping tissue paper and a Japanese company to supply diaper core wraps.

In addition, the group’s consistency in paying out dividends is maintained at 2.9 sen per share, or yield of 3.6% for FY15F.

“We expect earnings to be boosted further upon materialising of their strategies,” the research team said in their note

At 12:07pm, NTPM remained unchanged at 81 sen with 470,500 shares traded.

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