KUALA LUMPUR (May 15): Shares in Y.S.P Southeast Asia Holdings Bhd (YSPSAH) surged as much as 34 sen or 21.12% after the group posted better earnings in the first quarter of financial year 2015 (1QFY15).

As at 11.29am, the stock was traded RM1.90, still up 29 sen or 18.01%, making it the largest gainer across the stock exchange.

Some 2.14 million shares were seen having been traded between RM1.77 and RM1.95 today, giving it a market capitalisation of RM214.2 million.

YSPSAH (fundamental: 2.5; valuation: 2) has been trading in the uptrend since Dec 16 last year. The stock rose to a multi-year high of RM1.95 today from a low of RM1.20 on Dec 16 last year.

"At the current price, the stock has reflected the company's fundamental value," a dealer told theedgemarkets.com over the phone.

He believed the better earnings have prompted investors to buy into the stock.

According to him, YSPSAH's net assets per share attributable to owners of the company stood at RM1.84, up seven sen from RM1.77 last year.

The generic drugs maker told Bursa Malaysia yesterday that its net profit for the 1QFY15 jumped 71.25% to RM9.35 million from RM5.46 million last year on higher revenue recorded and lower cost margin for product mix sold.

Revenue for the quarter is also up 15.32% to RM59.31 million from RM51.43 million in 1QFY14.

No dividend was declared for the quarter under review.

Going forward, YSPSAH's 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 said.

However, the group noted uncertainties in the global economic outlook and the weakening of the Malaysian Ringgit were some of the factors that may have impacted 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.)