KUALA LUMPUR (Aug 20): Shares in generic drugs maker YSP Southeast Asia Holdings Bhd (YSP) surged as much as 21 sen or 8.3% after the group posted better earnings in the second quarter ended June 30, 2015 (2QFY15).
At 2.40pm, the stock pared some gains and was trading at RM2.70, still up 18 sen or 7.14%, making it the sixth-largest gainer across the stock exchange.
Some 769,700 shares were traded between RM2.37 and RM2.73 today. The current price gives it a market capitalisation of RM365.81 million.
The counter has been on an uptrend since Monday (Aug 17), when it was trading at RM2.26, having gained 20.8% in just a week, outperforming the benchmark FBM KLCI's 0.05% increase in the same period.
YSP (fundamental: 2.5; valuation: 2) had announced on Tuesday that its net profit for the 2QFY15 ballooned to RM3.42 million from a mere RM964,000 in the same period last year, due to higher revenue and lower cost margin for product mix sold.
Revenue for the quarter also went up 9.8% to RM50.63 million from RM46.11 million in 2QFY14.
The group also declared a 6.5 sen dividend on the release of the latest quarterly results, payable on Aug 25.
For the six-month period, its net profit almost doubled to RM12.77 million against RM6.41 million last year, while revenue strengthen 12.7% to RM109.94 million from RM97.54 million.
Going forward, YSP said its prospects for domestic and overseas manufacturing plant, consumer healthcare products and traditional complementary medicine remained good in the markets it operates.
"Efforts in introducing more new range of products will be stepped up to broaden our market base," it had said.
However, it also noted that uncertainties in the global economic outlook and the weakening of the ringgit were some factors that may impact its earnings.
(Note: The Edge Research's fundamental score reflects a company's profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)