For QE30/6/2015, YSPSAH's net profit dropped 63% q-o-q but rose 255% y-o-y to RM3.4 million while revenue had similarly dropped 15% q-o-q and rose 10% y-o-y to RM50.6 million. Revenue dropped q-o-q mainly due to lower demand from domestic market. Lower revenue and higher cost margin for product mix led to a disproportionately bigger drop in net profit.
Table: YSPSAH's last 12 quarterly results
Chart 1: YSPSAH's last 12 quaerterly result
Valuation
YSPSAH (closed at RM2.33 yesterday) is now trading at a trailing PER of 13.7 times (based on laat 4 quarters' EPS of 17 sen). At this PER, YSPSAH is deemed fully valued.
Technical Outlook
YSPSAH broke below its accelerated uptrend line, S1-S1 at RM2.80. Its immediate support at the horizontal lines, RM2.20 & RM2.00. Its intermediate uptrend line, SS could provide support at RM1.90.
Chart 2: YSPSAH's weekly chart as at Aug 18, 2015 (Source: Tradesignum)
Conclusion
Based on poorer financial performance and full valuation, YSPSAP;s rating is revised to HOLD. The attractive entry level is at RM1.90-2.00.
Note:
In addition to the disclaimer in the preamble to my blog, I hereby confirm that I do not have any relevant interest in, or any interest in the acquisition or disposal of, YSPSAH.
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