Y.S.P Southeast Asia Holding Bhd (-ve)

YSPSAH (Fundamental: 2.5/3, Valuation: 2/3), a manufacturer and trader of pharmaceutical, over-the-counter, veterinary and traditional herbal products, first triggered our momentum alert on May 18 at RM1.99. 

The rarely traded stock has since risen by 6% to close at RM2.11 yesterday.

For 1Q2015, revenue increased 15.3% y-o-y to RM59.3 million while net profit jumped 71.3% to RM9.3 million, primarily due to higher demand and favourable product mix. 

Domestic market accounted for 77.6% of its revenue in 2014, with the balance from export markets, including Singapore, Philippines and Vietnam.  

YSPSAH has a strong balance sheet with net cash of RM38.5 million or 13.6% of its market capitalisation.

The stock is trading at a trailing 12-month P/E of 13.84 times and 1.15 times book. Dividend was maintained at 6.5 sen for 2014, translating to a yield of 3.1%. The dividend will go “ex” on July 23.

This article first appeared in The Edge Financial Daily, on June 16, 2015.