YSP Southeast Asia ... Feb 2009

It expects to sustain earnings this year because demand for its generic prescription drugs is stable. Prescription drugs contribute the most in revenue; hence are not been significantly impacted (by the crisis) in terms of demand for its products. The healthcare industry was relatively resilient through boom and bust cycles.

However, the demand for its over-the-counter (OTC) products sold at pharmacies had been more affected by the economic slowdown.

Its good track record in prescription drugs had resulted in repeat orders from clients. In addition, the company has been able to control costs and inventories with its own production facilities.

The company’s balance sheet remains healthy with a manageable gearing ratio at 0.12 time.

YSP is also planning to restart its operations in Vietnam in the second quarter 2009.

The company’s new facility in Bangi to produce injectables and eye-drops would take another one to two years before production could start due to the safety measures that needed to be in place.