Bloomberg - YSP:MK
Yahoo - 7178 .kl
Webpage - http://www.yspsah.com/Home/Home.asp
1) Interest Coverage Ratio
Summary of Industry Comparison
Yahoo - 7178 .kl
Webpage - http://www.yspsah.com/Home/Home.asp
Sector : Health Care
Sub Sector :Pharmaceuticals
Revenue
:
YSPSAH revenue mainly consists are from two segment
as below.
1) Manufacturing
Manufacturing of Pharmaceutical
products.
2) Trading
Import, export and trading in
various kinds of pharmaceutical, traditional herbal and veterinary products.
Pie chart below shows YSPSAH revenue distribution
for financial year 2018.
From the pie chart above, YSPSAH main business focus
on manufacturing of Pharmaceutical products which stands 85 % of the 2018
revenue.
Bar chart above shows revenue and operating margin
of YSPSAH from 2010 to 2018.
5 Years Annualise Growth of Revenue
|
8.63 %
|
9 Years Annualise Growth of Revenue
|
9.29 %
|
YSPSAH had very consistence revenue growth rate of
around 8 %.
YSPSAH operating margin is around 12 over the past 9
years expect in 2015 it had high operating margin of 17.83.
Nett
Profit
Bar Chart below shows YSPSAH nett profit from 2010 –
2018.
5 Years Annualise Growth of Nett
Profit
12.60 %
9 Years Annualise Growth of Nett
Profit
10.55 %
From the graph there is a significant increase in nett
profit since 2015 with 75% of nett profit grow in 2015. The nett profit surge
is mainly due to the goods and services tax (GST) implemented by the government
in April 2015 where its customer stocked up the pharmaceutical products to
avoid paying the GST. Besides that YSPSAH also had an unrealised gain of RM 6.7
million and RM 5.9 million for 2015 and 2016 respectively. While on other year between
2010 – 2018 period YSPSAH unrealised gain / loss on foreign exchange rate is
between RM 0.5 million to RM 1.0 million. In 2017 YSPSAH had unrealised lose on
foreign exchange of RM 6.6 million which drag the nett profit down by 27 % in
2017.
Assets
and Liabilities
From the chart above, YSPSAH assets increase over
time while liabilities reduce from 2010 to 2016 and increase from 2017 to 2018.
In 2018 there is an increase in borrowing from RM 19,848,000 (2017) to
RM39,655,000 (2018).
Trade
Receivables
Let compared trade receivable of YSHSAP against
trade receivable past due every year.
From the comparison above, YSPSAH trade receivable
increase over time. Percentage of trade receivables past due from 2011 – 2018 have
a range of 16 % to 31 % with lowest in 2016 which is 16.69% and increase after 2016
to 24.75 % in 2018.
Financial
Ratio
There would be few financial ratios to be look at
here:
1) Interest
Coverage Ratio (Green Bar Chart)
2) Cash
Ratio (Blue Line Chart)
3) Current
Ratio (Red Line Chart)
1) Interest Coverage Ratio
Interest coverage ratio measure how
capable the company pay off the existing debt. With an interest coverage ratio
above one mean the earnings before interest & tax (EBIT) is able to pay of
the full amount of the financial cost of the year.
YSPSAH had interest coverage ratio
of 23.10.
2) Cash
Ratio
As cash is the most liquid assets
of the company, cash ratio is use to determine company ability to pay off short
term liabilities using cash. Cash ratio above one indicates that company able
to settle all current liabilities using available cash.
YSPSAH cash ratio maintain above 1
for the period except 2011 which the cash ratio is 0.92. In 2018 YSPSAH has RM
76,641,000 in cash and equivalent while have RM 39,655,000 of total borrowing.
3) Current
Ratio
Current ratio measures ability of
the company to pay off short term obligation (current liabilities). Current
ratio above one means the company able to pay off the current liabilities with
current asset.
YSPSAH current ratio generally inverse
over time but in 2017 there is a drop in current ratio from 5.89 (2016) to 4.63
(2017) and recover to 5.21 in 2018. YSPSAH having current ratio well above one
which mean they are financially strong in short term.
Turnover in Days
Let
look into three types of turn over as follow:
1) Inventory
Turnover (Blue Line)
2) Trade
Receivables Turnover (Red Line)
3) Trade
Payable Turnover (Green Line)
1) Days
Sales of Inventory
9
Years Days Sales of Inventory Median (days) – 222
YSPSAH days sales of inventory had
increase from 192 in 2010 to 250 in 2012 before drop back to 222 in 2018 on
average took 222 days to sell their products.
2) Trade
Receivable Turnover (Days)
9
Years Trade Receivable Turnover (Days) – 85
YSPSAH trade receivable turnover
had shown a downward trend from 100 days in 2010 to 78 days in 2018.
3) Trade
Payable Turnover (Days)
9
Years Trade Payable Turnover (Days) – 35
YSPSAH trade payable turnover would
be constant around 35 days. YSPSAH trade payable turnover is less than trade
receivable turnover hence YSPSAH required some cash for the cash flow.
Per Share Analysis
1) Earnings
per share (sen) (Blue Bar)
2) Dividend
per share (sen) (Red Bar)
3) Net
total assets per share (Green Line)
1) Earnings
per share
YSPSAH earning per share increase significantly
in 2015 and drop in 2017. The main reason of the significant increase and loss
was due to gain (2015) and loss (2017) in the foreign currency exchange.
2) Dividends
per share
YSPSAH had pay dividend consistently
every year since 2010. YSPSAH dividend payout ratio is not consistent it range
about 0.3 to 0.6 over 2010 – 2018. In 2017 despite lower earnings per share
YSPSAH continue give high dividends to the shareholders, dividend payout ratio
of 0.57.
3) Net
total assets per share
YSPSAH net total assets had growth consistently
since 2015.
Director’s Remuneration
Some
company paid high remuneration to director despite low profit. Let see how much
is YSPSAH director’s remuneration in comparison to staff fee and operating
profit.
YSPSAH
director’s remuneration average stands 4.70% of total salaries expense and
about 11.68 % on average of the operating profit.
YSPSAH
director’s remuneration does not reduce despite poor performance in 2017 which
make percentage against operating profit increase to 17.62 %. The percentage
against total salaries expenses also has increase from 4% in 2010 to 12 % in
2008.
Market Report
Date
|
Research House
|
Target Price
|
25-02-2020
|
2.21
|
|
26-02-2020
|
3.00
|
|
Average Target Price
|
2.605
|
Summary of Industry Comparison