NTPM’s FY13 results were well within our forecast, representing  99.6% of  our  full-year  estimate.  Revenue  rose  6.8%  y-o-y  on  better  sales  of baby diapers while earnings rose 9.6% due to wider margins across the board.  The  company  has  declared  a  single-tier  final  dividend  of  1.45 sen,  bringing  its  FY13  DPS  to  2.9  sen.  This  provides  a  decent  5.3% dividend yield. Maintain BUY, with our FV at RM0.69.

-  Spot on.  NTPM’s FY13 revenue and earnings expanded by 6.8% and 9.6%  y-o-y  respectively  to  MYR480.6m  and  MYR49.1m.  Sales  were boosted by a 37.9% y-o-y jump in  revenue growth from its personal care segment,  especially  due  to  higher  domestic  baby  diaper  sales,  which mitigated the 1.1% y-o-y dip in turnover from the paper products division. The  company’s  paper  products  revenue  weakened  on  slower  sales  of tissue paper products in the export market. However, both of its business segments reported better y-o-y margins  during  the period  under review. Meanwhile,  PBT  from  the  personal  care  division  surged  70.1%  y-o-y from MYR6.7m to MYR11.4m, supported by stellar sales, while that from paper products rose by 5.9% y-o-y despite a slight drop in topline, mainly driven  by better margins. As 3Q is normally the strongest quarter for the group, 4Q sales and earnings dipped 6.1% and 7.2% q-o-q respectively.

- Better margins. EBIT and PBT margins widened by 90bps and 80bps yo-y  to  14.8%  and  14%  respectively,  fuelled  by favorable  raw  material prices and  higher  sales.  The  PBT margin for  paper products improved from  14.7%  to  15.8%  while  that  in  NTPM’s  personal  care  segment expanded from 7.3% to 9% y-o-y.

- Maintain BUY.  NTPM declared a  single-tier final dividend of 1.45 sen, bringing the full-year DPS to 2.9 sen,  which is within our expectation,  as highlighted  in  our  previous  report.  As  the  results  were  in  line  with estimates, we are leaving our numbers untouched and maintain our BUY recommendation,  with the  stock’s FV unchanged at MYR0.69, based on 13x CY14 EPS.

Source: RHB