Eu Yan Sang

Eu Yan Sang

Postby winston » Wed May 14, 2008 8:20 am

From Phillips:-

Eu Yan Sang International Ltd reported a 21% climb in revenue to S$163.6 million for the nine months ended 31 March 2008 (9M FY2008) on the back of broad-based growth across the Group’s three key markets of Hong Kong, Singapore and Malaysia.

In local currency terms, Hong Kong grew 25% to HK$396.3 million, Singapore increased by 20% to S$46.7 million and Malaysia jumped 29% to RM$97.0 million, reflecting robust demand for the Group’s premium TCM products.
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Re: Eu Yang Sang

Postby winston » Wed May 14, 2008 2:25 pm

Not vested. From OCBC:-

Weak 3Q08 results. Eu Yan Sang International Ltd (EYS) failed to leverage on its seasonally strongest 3Q this year, posting a 45% YoY decline in profit before tax (PBT) to S$3.5m and a 75% YoY plunge in net profit to S$1.3m despite revenue improving by 12% YoY to S$61.4m. Its dire results were partly caused by one-off items involving the disposal of its bleeding
Australian clinics and the restructuring of ownership of its Red White & Pure (RWP) concept store. Excluding these items, PBT would have fallen by a smaller 16.3% YoY. However, adding to its woes, the continued strengthening of the SGD against other currencies such as the HKD resulted in forex losses amounting to S$0.5m in 3Q08, further wiping out the group's
revenue growth.

Freed of its burdens. To recap, EYS's Australian clinics and RWP concept store incurred losses of approximately S$0.5m and S$2.2m in 1H08, respectively, and have been causing a drag on the group's earnings. As such, EYS has recently divested these units. Although the restructuring of RWP from a fully-owned entity into a 20%-owned associate resulted in a painful S$2.9m impairment on EYS's FY08 earnings, this move will actually benefit the group in the longer term as it reduces the burden of RWP's losses on the group's future earnings. For the same reason, we view EYS's recent liquidation of its Australian clinics positively, as it will stem further losses on the group's earnings.

Expansion helps to grow revenue, but at a cost. EYS's rapid retail expansion has no doubt borne fruits in the form of revenue growth. However, whether the benefits of expansion outweigh its costs remain unclear. For 3Q08, revenue from its retail segment grew by 14% YoY, but distribution and selling expenses escalated by a quicker 22% on higher rental and manpower costs. As inflation takes its heat on the economy, EYS's sales growth must outpace escalating costs in order for further expansion plans to remain viable.

Trimming our fair value and rating. We have trimmed our FY08 earnings estimate by 15% to factor in EYS's weaker-than-expected 3Q08 results and one-off expenses incurred in its recent divestments, and as a result, our fair value estimate eases to S$0.485 (from $0.535 previously). At current valuations, this represents around 13% potential downside, as such, we
are downgrading our rating to SELL.
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Re: Eu Yang Sang

Postby littlecupid » Wed May 14, 2008 2:57 pm

Was vested previously also, had a 1 bagger on this.

The Red White concept do not seem to be picking up. Was previously optimistic on its regional expansion plan in Thailand, but not too much progress. Cerebos Pacific on the other hand has Thaliand as a good revenue contributor
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Re: Eu Yang Sang

Postby helios » Sat May 17, 2008 1:42 pm

dear cupid:

1. conceptualised food does not take-off easily w e asian food culture in singapore. this acceptance will improve if singapore moves towards cosmopolitan (culture) in 2010 later years? (REF: this is e same w molecular gastronomical food)...

2. looks like e disposal of RWP to Sanctuary Spa Gp is positive. (NB: SSP is held by TWG - the Wellness group as e legal entity). SO, u may wanna to check on e management in TWG? it is stated in their communications:

Following the departure of several management staff at RWP, the Company has engaged the sole shareholder of SSG, TWG, to manage and run the Business since 11 May 2007 due to its relevant expertise and experience.

3. i'm juz wonder'g if u wanna to check on EYS business operations in taiwan? what's e progress? i remember e taipei outlet launch was a big "who's who" (news) affair done by e CNA on Richard Eu ...

4. oh yes, pass-by EYS office @ south bridge road last week, & their facade refix is completed. prominent retro-fitting facade ...
[Finance disclaimer: The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought regarding investing of any stocks/ funds and/or whatsoever. The author has no vested interest in the mentioned stock at the time of writing.
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Re: Eu Yang Sang

Postby helios » Sun Jul 06, 2008 10:12 am

EYS was featured in this week's TheEdge magz (a bitez article).

didn't know Richard Eu is a R&B fan.

am look'g forward to attend TheBlueSky Festival organised by ACE (Eu is e chairman).
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Re: Eu Yang Sang

Postby winston » Sun Jul 06, 2008 10:18 am

Not vested. Have been very disappointed with this stock.

They have such a good brand yet have not been able to capitalize on it. The Asian economies are doing well and they have not gone anywhere. Wait till the Asian economies slowdown then they will really go somewhere... downwards.

Their foray into their non-traditional markets has been disastrous. This is what Peter Lynch called "Diworsesification"..
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Re: Eu Yang Sang

Postby helios » Sun Jul 06, 2008 10:30 am

Ooo ...

i think, e Brand expectations r too high.

side-notes in e article:

5. Eu said he might not pass e biz to his children (he's 60), as his eldest son is only 23years old.

6. Eu still wants to see e biz expand into Western countries, & see TCM products more widely accepted ... so he has a few more good years to go b4 retirement.
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Re: Eu Yang Sang

Postby winston » Sun Jul 06, 2008 10:48 am

San San wrote:6. Eu still wants to see e biz expand into Western countries, & see TCM products more widely accepted ... so he has a few more good years to go b4 retirement.


This could be their downfall. I guess the Australian lesson did not teach him much.

It is ok to test one's idea but losses has to be managed.

Instead, he should just focus on his traditional markets, especially China.

At one time, I was quite impressed with their strategy:-
1) hair loss product
2) menopause product
3) expansion into China

Suddenly, the focus switched to introducing TCM to the Western countries...

BTW, I have not seen any EYS stores in China. When my friends want to buy Bak Foong Yin or whatever, they have to buy it in HK, Spore or Malaysia. They could easily use their HK operations to expand into China and with their strong brand name, they will go really far in China..
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Re: Eu Yang Sang

Postby iam802 » Mon Aug 25, 2008 5:19 pm

Change of CFO and Company Secretary

http://info.sgx.com/webcoranncatth.nsf/ ... penelement

The Board of Directors of Eu Yan Sang International Ltd (the "Company") wishes to
announce that Mr Tan Kang Fun @ KF Tan, who was recently appointed as Chief
Operating Officer on 1 July 2008
, has relinquished his position as Chief Financial
Officer and Company Secretary of the Company with effect from 25 August 2008.
The said positions vacated by Mr KF Tan will be occupied by Mr Danny Heng Hang
Siong who has been appointed as the Chief Financial Officer and Company
Secretary with effect from 25 August 2008.
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Re: Eu Yang Sang

Postby kennynah » Mon Aug 25, 2008 5:25 pm

winston wrote:
San San wrote:6. Eu still wants to see e biz expand into Western countries, & see TCM products more widely accepted ... so he has a few more good years to go b4 retirement.


This could be their downfall. I guess the Australian lesson did not teach him much.

It is ok to test one's idea but losses has to be managed.

Instead, he should just focus on his traditional markets, especially China.

At one time, I was quite impressed with their strategy:-
1) hair loss product
2) menopause product
3) expansion into China

Suddenly, the focus switched to introducing TCM to the Western countries...

BTW, I have not seen any EYS stores in China. When my friends want to buy Bak Foong Yin or whatever, they have to buy it in HK, Spore or Malaysia. They could easily use their HK operations to expand into China and with their strong brand name, they will go really far in China..


ask for a china franchise as your hobby lah...
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