YSPSAH Q1 2019

• Gross profit margin for Q1 2019 is 43% which is reasonable however is below its benchmark as previously its gross profit margin always range from 44% - 47%. 
• Selling, distribution and admin expenses accounts for 31.71% in Q1 2019 vs 31.43% in 2018. 
•  Profit before tax margin stood at 9.36% in Q1 2019 which is lower than its benchmark. From year 2013 - 2018, YSPSAH manage to achieve a PBT margin of more than 11%. 
• Net profit margin shrink to 6.62% which is below its benchmark of 7% - 11%.
• Overall, the main reason for the drop is due to lower gross profit margin. 

• YSPSAH has a net cash per share of RM 0.30 increased from RM 0.27 previously. Borrowings decreased from RM 39 million as per 2018 annual report to RM 34 million for the current quarter. 

• The main reason for the business to slow down is due to lower overseas sales and lower profit margin for the current quarter. 

• Overall, the management is positive with its performance for 2019. 
• The company is working on improving efficiency, increase product offering and promotion to increase market shares. 

Comments

Overall, the company perform slightly below benchmark for the current quarter due to higher cost of sales. Nevertheless, the demand for pharmaceutical products will always be there regarding how the economic perform. It is worth waiting for another 2 more quarters to find out how the company will generally perform in year 2019. At the price of RM 2.44, its PE is 11.9, ROE is 8.90, profit margin slide to 6.5%, DY is 3.48%.