Eu Yan Sang

[winston]

not vested

Eu Yan Sang opens 16th outlet in China By CARINE LEE

Singapore-listed Eu Yan Sang International Limited on Monday opened its 16th retail outlet in China, at Foshan - the birthplace of its founder Eu Kong.

The outlet offers customers a unique glimpse into its history with an interactive retail-museum concept.

Prior to this, Eu Yan Sang retail outlets in China only carried food products and Eu Yan Sang Lingzhi cracked spores capsules.

Additionally, the company said it became the first foreign listed Traditional Chinese Medicine (TCM) company to receive a retail pharmacy license to dispense both prescription drugs and Chinese herbal medicine in China.

The first Eu Yan Sang pharmacy will open in Dongguan, China later this year.

http://www.businesstimes.com.sg/sub/lat ... 91,00.html?

[winston]

not vested

Eu Yan Sang International intends to open more stores in China in the long run.

Right now the group has 16 stores in China, and it is looking at close to 20 by the end of this financial year, which ends on June 30.

The company has faced massive expansion at a quick rate the past year, with the opening of 13 new stores over the past nine months.

Source: DBS

[winston]

not vested

Growth momentum unfazed

We recently spoke to CEO Richard Eu and came away with the following takeaways:

1) Acquisition of 96 HealthyLife stores and distribution business in Australia for A$5m is expected to boost Group’s topline by ~A$50-60m,

2) Targets 20 outlets in China by end-FY12 and +20 in FY13/14 respectively,

3) Recently secured pharmacy license in China will see first pharmacy be opened in Dongguan, enabling the Group to offer the Chinese market its entire product range as current stringent Chinese regulations restrict it from retailing certain medicinal products.

Going forward, we expect core margins to contract from 9% in FY11 to 7-8% in FY12-14F due to lower margin Australian business.

Our FY12F earnings are lowered to take into account the S$8.8m write-off on Healthzone and we introduce our FY13-14F numbers.

Expect FY13-14F earnings CAGR of 23%, driven in part by lower base in FY12.

Maintain BUY with a lower TP of S$0.90, pegged to 15x FY13F EPS.

Source: DMG

[winston]

not vested. So much potential yet ...

Eu Yan Sang International – 3QFY12: Bitter Pill To Swallow, Downgrade To SELL

(SELL/S$0.66/Target: S$0.52)
FY12F PE (x): 16.5
FY13F PE (x): 15.3


Disappointing set of results.

9MFY12 net profit (excluding impact of impairment for Healthzone), accounted for 49.3% of our FY12 profit forecast. Although gross margins remained stable at 50.6%, EYS’s net earnings were hampered by higher distribution and selling (+15% yoy) and administrative costs (+27% yoy).

3Q is traditionally the strongest quarter, accounting for 45% of FY11 net profit. While 3QFY12 revenue grew 10% yoy to S$89.8m, net profit declined 51.0% yoy to S$5.5m.


Downgrade EYS to SELL, with a reduced target price of S$0.52.

We base on target price on a 2013F PE of 12.1x, representing a 30% discount to its peer average of 17.3x, slightly below its 5-year historical mean PE of 12.5x.

In our view, earnings growth and visibility have been negatively impacted by the inclusion of Healthzone in Australia.

We remain cautious on Healthzone’s profitability, given EYS’s limited success in acquisitions thus far. EYS previously recorded about S$5m in goodwill impairment and losses relating to discontinued operations between 2003 and 2008.


Source: UOBKH

[winston]

not vested

Eu Yan Sang Set To Expand And Tap Halal Market In Malaysia

SINGAPORE, May 17 (Bernama) -- Eu Yan Sang International Ltd (EYSI) is set to open more stores and tap the potential of the halal market in Malaysia.

http://www.bernama.com.my/bernama/v6/ne ... ?id=666782

[winston]

not vested

Eu Yan Sang Q4 profit up 55% on fair value gain By Carine Lee

Eu Yan Sang said full-year profit was largely driven by the higher sales for the core markets in Hong Kong, Malaysia and Singapore, and the contribution from Australia since its inception in February.

Eu Yan Sang International Ltd on Tuesday posted a 55 per cent year-on-year increase in net profit for the fiscal fourth quarter ended June 30, 2012 to $9.19 million from $5.91 million a year ago.

Earnings per share were 2.08 cents, up from 1.34 cents a year ago.

The rise in profit was helped by a sharp increase in fair-value gain on investment property, which surged to $7.09 million from $2.55 million a year ago.

Turnover rose 10 per cent year-on-year to $69.6 million, while full year revenue rose 9 per cent to $289.93 million.

http://www.businesstimes.com.sg/breakin ... n-20120828

[winston]

not vested

EYS reported PATMI of S$16.4m, exceeding our expectations of S$11.8m.

However stripping off the fair value gains derived from investment properties and derivatives, PATMI would have fallen to S$8.9m, below our estimates.

Revenue grew by 9% with gross margins holding steady at 51%.

Australia contributed S$11.2m to revenue since Feb12, or 4% of topline. In 4Q12 alone, Australia contributed S$7.8m in sales, representing 11% of Group revenue. However, the Healthy Life stores in Australia are still incurring operating losses hence putting a drag on earnings. They are expected to only turn profitable in FY14.

We expect gradual improvement in margins as the Australian and China operations gradually reduce their losses and return to the black.

The Group declared a 1S¢ final dividend and a 1S¢ special dividend, exceeding our forecast of 1.4S¢.

Re-iterate BUY with TP of S$0.74, pegged at 15x FY13.


Source: DMG

[winston]

not vested

Eu Yan Sang Q1 net profit plunges 92% By Teo Si Jia

Eu Yan Sang International on Monday posted a 92 per cent decline in net profit for the first quarter ended Sept 30 to S$341,000 from S$4.5 million a year ago.

This was due to a 49 per cent decline in operating profit to S$3.14 million from S$6.18 million a year earlier.

Earnings per share for the quarter fell significantly to 0.08 cents from 1.02 cents a year earlier.

Revenue rose 16 per cent to S$70.58 million from a year ago.


Source: Business Times

[winston]

not vested

Eu Yan Sang Expands From Bird’s Nest to Vitamins: Southeast Asia By Sharon Chen

Eu Yan Sang International Ltd., the largest seller of traditional Chinese medicine in Asia outside of China, plans to add its signature herbs to Western health supplements such as vitamins to broaden its customer base.

The century-old Singapore-based company, which bought the assets of Australia’s Healthzone Ltd. a year ago, will produce the supplements under that unit’s brands and infuse them with Chinese herbs used to fight colds and fevers, Chief Executive Officer Richard Eu said.

The products will be introduced in the next two months and sold with herbs and other Chinese health products such as bird’s nest, he said.

http://www.bloomberg.com/news/2013-02-1 ... -asia.html

[behappyalways]

Not vested

US FDA WARNS CONSUMERS NOT TO USE EU YAN SANG “BO YING COMPOUND"
http://www.therealsingapore.com/content ... g-compound