Eu Yan Sang

A good start to this thread may be this takeaway from the company's profile....

......Eu Yan Sang’s ability to control the total supply chain – from the
sourcing of its raw materials to the production and distribution of
its products and the provision of treatments gives the Group an
excellent competitive edge in the industry

agreed on this biz model.

Selling chinese traditional medicine hits the correct note in majority chinese populated areas.

(19-10-2011, 05:46 AM)orang Wrote: A good start to this thread may be this takeaway from the company's profile....

......Eu Yan Sang’s ability to control the total supply chain – from the
sourcing of its raw materials to the production and distribution of
its products and the provision of treatments gives the Group an
excellent competitive edge in the industry

Is that competitive edge as mentioned by yourself reflected in the gross and net margins? Assuming they have a sustainable moat, they should be able to sustain or even increase market share over time, and revenues should trend up nicely over the last 5-10 years.

Maybe you can illustrate with some numbers? I have yet to do an analysis for EYS using an Excel spreadsheet.

Some pertinent numbers and ratios to consider:-

1) ROE
2) Gross/Net Margins
3) Receivables to Revenues
4) FCF Generation
5) Dividend History and payout ratio
6) Resilience of business model (i.e. revenues) to economic cycles
7) Debt Levels/Gearing
8) Any share issuances/rights issues in the past 3-5 years?
9) Any major M&A done in the last 3-5 years?
10) Is growth organic or acquisitive or a good mix of both
11) Plans for expansion and growing the business

Thanks!

(19-10-2011, 05:46 AM)orang Wrote: ......Eu Yan Sang’s ability to control the total supply chain – from the
sourcing of its raw materials to the production and distribution of
its products and the provision of treatments gives the Group an
excellent competitive edge in the industry

Mumbo jumbo. To control the total supply chain, they need to produce their own raw materials and not merely sourcing for it.

(19-10-2011, 04:05 PM)cif5000 Wrote:

(19-10-2011, 05:46 AM)orang Wrote: ......Eu Yan Sang’s ability to control the total supply chain – from the
sourcing of its raw materials to the production and distribution of
its products and the provision of treatments gives the Group an
excellent competitive edge in the industry

Mumbo jumbo. To control the total supply chain, they need to produce their own raw materials and not merely sourcing for it.

Alamak! English lesson time.

But then in this cut-throat world the practice of "putting the best foot forward" is prevalent even in this forum. tampa sikit

Maybe someone should raise this misrepresentation at the forthcoming AGM ya?

(19-10-2011, 04:33 PM)orang Wrote: Alamak! English lesson time.

But then in this cut-throat world the practice of "putting the best foot forward" is prevalent even in this forum. tampa sikit

Maybe someone should raise this misrepresentation at the forthcoming AGM ya?

Perhaps "total" had been misinterpreted somewhat along the way. Is the firm vertically integrated? If so, how far along the supply chain?

Once we can establish that then you can see how well they are in control of the entire supply chain from producing, to wholesaling, processing, storage then retailing.

i have been eying EYS for quite some time. but their share price has been stubbornly resistant to provide a good investment opportunity.

(19-10-2011, 04:35 PM)Musicwhiz Wrote:

(19-10-2011, 04:33 PM)orang Wrote: Alamak! English lesson time.

But then in this cut-throat world the practice of "putting the best foot forward" is prevalent even in this forum. tampa sikit

Maybe someone should raise this misrepresentation at the forthcoming AGM ya?

Perhaps "total" had been misinterpreted somewhat along the way. Is the firm vertically integrated? If so, how far along the supply chain?

Once we can establish that then you can see how well they are in control of the entire supply chain from producing, to wholesaling, processing, storage then retailing.

The process is simply sourcing-manufacturing-wholesaling-retailing. And "collect money" ya?

And the moat is now a longkang....big longkang?

Orang,

LOL! It's indeed English lesson time! Everything is semantics!

In my humble opinion working in Supply Chain, what Eu Yan San says is technically correct. In these outsourcing time, "total" supply chain is indeed what you have written: sourcing-manufacturing-wholesaling-retailing.

If we want to split hairs, how many companies can own their own shipping, land, and air carriers? How many companies can "produce" all the raw materials that go into their final products?

Whether that's an competitive advantage or hindrance may depend whether you belong to the outsourcing school or vertical integration school

Or depending whether you are a business owner or employee. Outsourcing is more ofen than not another word for retrenchment to employees

(19-10-2011, 12:14 PM)Musicwhiz Wrote: Some pertinent numbers and ratios to consider:-
3) Receivables to Revenues

how do u use this ratio? higher rec to rev is not a gd sign?