Stock With Momentum: Y.S.P.Southeast Asia Holding

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THE rarely traded shares of YSP (Fundamental: 2.5/3, Valuation: 2.0/3) surged 31.7% since last Thursday, following announcement of strong 1Q2015 earnings results. The stock closed at a 5-year high of RM2.12 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. 

The company trades and manufactures a wide array of pharmaceutical, over-the-counter, veterinary and traditional herbal products. In 2014, domestic market constituted 77.6% of its revenue with the balance from export markets. 

It has a strong balance with net cash of RM38.5 million, equivalent to 14.8% of its market capitalisation. From 2010-2014, sales and net profit grew by CAGR of 9.9% and 7.9%, respectively.

The stock is trading at a trailing 12-month P/E of 12.7 times and 1.06 times book. The company proposed a first and final dividend of 6.5 sen, giving a yield of 3.3%.


This article first appeared in The Edge Financial Daily, on May 19, 2015.