NPC Resources Berhad (KLSE:NPC) - Share price, News & Analysis

NPC fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	0/6
Past Performance	5/6
Financial Health	0/6
Dividends	0/6

NPC Stock Overview

NPC Resources Berhad, an investment holding company, engages in oil palm plantation and milling activities in Malaysia and Indonesia.

Rewards

Price-To-Earnings ratio (7.5x) is below the MY market (14x)

Earnings grew by 524.5% over the past year

Risk Analysis

Interest payments are not well covered by earnings

Does not have a meaningful market cap (MYR220M)

NPC Resources Berhad Competitors

Matang Berhad

KLSE:MATANG

RM217.2m

Cepatwawasan Group Berhad

KLSE:CEPAT

RM239.4m

Negri Sembilan Oil Palms Berhad

KLSE:NSOP

RM259.7m

Kluang Rubber Company (Malaya) Berhad

KLSE:KLUANG

RM250.9m

Price History & Performance

Summary of all time highs, changes and price drops for NPC Resources Berhad
Historical stock prices
Current Share Price	RM1.88
52 Week High	RM2.75
52 Week Low	RM1.70
Beta	-0.050
1 Month Change	-3.59%
3 Month Change	-1.57%
1 Year Change	-6.00%
3 Year Change	4.44%
5 Year Change	-15.32%
Change since IPO	83.12%

Recent News & Updates

Apr 28

Is NPC Resources Berhad (KLSE:NPC) Using Too Much Debt?

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...

Mar 04

NPC Resources Berhad's (KLSE:NPC) Earnings Are Weaker Than They Seem

Unsurprisingly, NPC Resources Berhad's ( KLSE:NPC ) stock price was strong on the back of its healthy earnings report...

Shareholder Returns

	NPC	MY Food	MY Market
7D	1.6%	-2.4%	-1.2%
1Y	-6.0%	-1.8%	-8.7%

Return vs Industry: NPC underperformed the MY Food industry which returned -1.8% over the past year.

Return vs Market: NPC exceeded the MY Market which returned -8.7% over the past year.

Price Volatility

Is NPC's price volatile compared to industry and market?
NPC volatility
NPC Average Weekly Movement	n/a
Food Industry Average Movement	5.0%
Market Average Movement	5.5%
10% most volatile stocks in MY Market	11.5%
10% least volatile stocks in MY Market	2.9%

Stable Share Price: Insufficient data to determine NPC's volatility over the past 3 months.

Volatility Over Time: Insufficient data to determine NPC's volatility change over the past year.

About the Company

Founded	Employees	CEO	Website
1981	n/a	Pang Loo	https://www.npc.com.my

NPC Resources Berhad, an investment holding company, engages in oil palm plantation and milling activities in Malaysia and Indonesia. It operates through three segments: Plantation and Milling, Fishery, and Hotelier. It engages in the cultivation and sale of oil palm products.

NPC Resources Berhad Fundamentals Summary

How do NPC Resources Berhad's earnings and revenue compare to its market cap?
NPC fundamental statistics
Market Cap	RM219.70m
Earnings (TTM)	RM29.12m
Revenue (TTM)	RM389.29m

7.5x

P/E Ratio

0.6x

P/S Ratio

Is NPC overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
NPC income statement (TTM)
Revenue	RM389.29m
Cost of Revenue	RM320.53m
Gross Profit	RM68.76m
Other Expenses	RM39.63m
Earnings	RM29.12m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.25
Gross Margin	17.66%
Net Profit Margin	7.48%
Debt/Equity Ratio	85.3%

How did NPC perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is NPC undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for NPC?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for NPC. This is calculated by dividing NPC's market cap by their current preferred multiple.
What is NPC's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	RM219.70m

NPC key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1.8x
Enterprise Value/EBITDA	8.3x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does NPC's PE Ratio compare to its peers?

NPC PE Ratio vs Peers

The above table shows the PE ratio for NPC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	19.6x
MATANG Matang Berhad	41.2x	n/a	RM217.2m
CEPAT Cepatwawasan Group Berhad	4x	n/a	RM239.4m
NSOP Negri Sembilan Oil Palms Berhad	8.9x	n/a	RM259.7m
KLUANG Kluang Rubber Company (Malaya) Berhad	24.2x	n/a	RM250.9m
NPC NPC Resources Berhad	7.5x	n/a	RM219.7m

Forward PE

Price-To-Earnings vs Peers: NPC is good value based on its Price-To-Earnings Ratio (7.5x) compared to the peer average (19.6x).

Price to Earnings Ratio vs Industry

How does NPC's PE Ratio compare vs other companies in the MY Food Industry?

Price-To-Earnings vs Industry: NPC is good value based on its Price-To-Earnings Ratio (7.5x) compared to the MY Food industry average (12.2x)

Price to Earnings Ratio vs Fair Ratio

What is NPC's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

NPC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	7.5x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate NPC's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of NPC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: Insufficient data to calculate NPC's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate NPC's fair value for valuation analysis.

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate NPC's PEG Ratio to determine if it is good value.

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Future Growth

How is NPC Resources Berhad forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

-7.0%

Forecasted Food, Beverage & Tobacco industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as NPC Resources Berhad has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

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Check out NPC Resources Berhad's track record over time to understand how much the company has returned to shareholders and its earnings growth rate in the past.

Past Performance

How has NPC Resources Berhad performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-5.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: NPC has high quality earnings.

Growing Profit Margin: NPC's current net profit margins (7.5%) are higher than last year (1.8%).

Past Earnings Growth Analysis

Earnings Trend: NPC has become profitable over the past 5 years, growing earnings by -5.4% per year.

Accelerating Growth: NPC's earnings growth over the past year (524.5%) exceeds its 5-year average (-5.4% per year).

Earnings vs Industry: NPC earnings growth over the past year (524.5%) exceeded the Food industry 35.1%.

Return on Equity

High ROE: NPC's Return on Equity (6.8%) is considered low.

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Financial Health

How is NPC Resources Berhad's financial position?

Financial Health Score

0/6

Financial Health Score 0/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: NPC's short term assets (MYR90.8M) do not cover its short term liabilities (MYR312.2M).

Long Term Liabilities: NPC's short term assets (MYR90.8M) do not cover its long term liabilities (MYR399.8M).

Debt to Equity History and Analysis

Debt Level: NPC's net debt to equity ratio (82.4%) is considered high.

Reducing Debt: NPC's debt to equity ratio has increased from 85.3% to 85.3% over the past 5 years.

Debt Coverage: NPC's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: NPC's interest payments on its debt are not well covered by EBIT (2x coverage).

Balance Sheet

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Dividend

What is NPC Resources Berhad current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate NPC's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate NPC's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if NPC's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if NPC's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: NPC is not paying a notable dividend for the MY market.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as NPC has not reported any payouts.

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Management

How experienced are the management team and are they aligned to shareholders interests?

17.6yrs

Average board tenure

CEO

Pang Loo (53 yo)

20.42yrs

Tenure

RM1,004,000

Compensation

Dato' Pang Kee Loo has been Group Managing Director and Chief Executive Officer of NPC Resources Bhd since January 31, 2002 and is also Co-Founder. Dato' Loo has vast experience in the field of plantation-...

CEO Compensation Analysis

Compensation vs Market: Pang's total compensation ($USD228.23K) is above average for companies of similar size in the MY market ($USD113.68K).

Compensation vs Earnings: Pang's compensation has been consistent with company performance over the past year.

Board Members

Experienced Board: NPC's board of directors are seasoned and experienced ( 17.6 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/06/27 00:00
End of Day Share Price	2022/06/27 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31