OSK Research ups NTPM earnings outlook

KUALA LUMPUR: OSK Research has raised its earnings outlook for NTPM HOLDINGS BHD [] for FY10 and FY11 by 16%-24% to RM64.4m and RM66.8m respectively given the better than expected results.

It said on Monday, March 15 the target price was raised to 60 sen from 50 sen.

NTPM reported a good set of results with cumulative 9MFY10 revenue and earnings coming in at RM289.7 million (+10% y-o-y) and RM45.1 million (+44.5% y-o-y) respectively, above OSK Research's full year earnings forecast of RM51.8 million.

Aside from the continued growth in sales volume of its main products (tissue products, sanitary napkins and diapers), the stronger than expected results were mainly attributed to the low raw material costs.

Nine-months FY10 EBIT margin surged to 20.3% versus 15.9% in 9MFY09. Nonetheless, the research house sees margin compression in FY11 as stocks are depleted.

http://www.theedgemalaysia.com/business-news/161509-osk-research-ups-ntpm-earnings-outlook.html