YSPSAH: Earning Rose on Better Profit Margins

Results Update

For QE30/6/2018, YSPSAH's net profit rose 54% q-o-q or 227% y-o-y to RM10.4 million while revenue was mixed - down 5% q-o-q but up 13% y-o-y - to RM67.8 million. Revenue dropped q-o-q mainly due to a slight reduction in demand from local market. Net profit rose q-o-q as a result of higher profit margin from changes in product mix during the quarter under review


Table: YSPSAH's last 12 quarterly results


Graph: YSPSAH's last 24 quarterly result

Financial Position

As at 30/6/2018, YSPSAH's financial position is deemed very healthy with current ratio at 4.3 times and gearing ratio at 0.3 time.

Valuation

YSPSAH (closed at RM2.80 yesterday) is now trading at a trailing PER of 14.7 times (based on laat 4 quarters' EPS of 19 sen). At this PER, YSPSAH is deemed fully valued.

Technical Outlook

YSPSAH may test the line connecting the highs made in 2015 & 2017, AB at RM3.00.


Chart 1: YSPSAH's weekly chart as at Aug 18, 2015 (Source: Malaysiastock.biz)


Chart 2: YSPSAH's monthly chart as at Aug 18, 2015 (Source: Shareinvestor.com)

Conclusion

Based on good financial performance & position, YSPSAP is considered a good stock for medium-term investment. The stock's upside is limited due to technical resistance ahead as well as being fairly valued.

Note:

I hereby confirm that I do not have any direct interest in the security or securities mentioned in this post. However, I could have an indirect interest in the security or securities mentioned as some of my clients may have an interest in the acquisition or disposal of the aforementioned security or securities. As investor, you should fully research any security before making an investment decision.