Pharmesis

Oceangrace wrote: Thanks Gangho
. Watching it....

Oceangrace,

Did you have a good look at Pharmesis? It seems like there is accumulation between 4.0 to 5.0c over last few days.

I think that interest could be slowly but steadily coming back to Pharmesis due to:

1) It has built up a solid portfolio of western and TCM drugs over the yrs thru acquisition and in-house development:

Western Products
- ATT Capsules and Tablets
- Lianpu Shuangqing tablets
- Afenka tablets
- Huangke Oral Liquid (for treating cold bugs)
- Naoxinshu Oral Liquid
- Shangmail Oral Liqueid


TCM Products (Under Gulan Gansu Brand)
- Gansu Granules and Tablets (for treating liver/gall bladder illnesses)
- Er Ding Gradules
- Xiao Shi Jian Pi
- Shulinghou
- Wuling Nang

I think ATT and Gansu are highly promising drugs (for treating liver/gall bladder illnesses)due to high consumption of Baijiu over last 20 yrs

2) Sales Channels : This has been one weakness of Pharmesis in the past. Management has been taking action and now it has reached out to 2,000 hospitals over china. And, it even managed to get Gansu included in the Essential Drug List in Sichuan Province in late 2012. Sweet!

3) Financially : Mgt seems to be prudent in financial mgt. We can see a healthy balance sheet with NTA 9.11cts and Cash 3.97cts per share. Zero debt! Loss has been reducing and we start to see positive free cash flow for last 2 qtrs. It is likely to turnaround within the next 1 to 2 qtrs, my guess. As it stops burning cash, mgt may start to declare div soon. This will be a great news for long suffering shareholders here.

4) Number os share issues remain at 200 million since listing in 2004. No dilution at all! This is amazing considering it is a s-chip.

5) Management team : Out of the 4 directors, 2 are Singaporean and one of them is the famous Mr. Chew Thiam Keng, CEO of Ezion Holding.

Interesting..isn't it?

Positive net profit of RMB1.32m, after 10 quarters of loss. Cash increases to abt 4.2c per share.

Time to watch magic soon..

philipng wrote: 2011 2012 2013 all reported loss...will it go into SGX-watchlist next year. Plus market capitalisation of $8.8m(200m shares * $0.044) less than sgx requirement $40m

4Q result looks ok and didn't go into SGX-watchlist. May become interesting going forward with its 2 prominant lines of Western and TCM products.

you say 10q of losses? so the 3rd yr already 2q of losses. sgx looked at loss by year not by q, right?

chinsoonyuen wrote: you say 10q of losses? so the 3rd yr already 2q of losses. sgx looked at loss by year not by q, right?

Yup. Last FY was positive attributing to better rev/profit from last 2 qtrs after Gansu was included in the essential drug list of Sichuan Province.

Starpharm trades above 5c and so should Pharmesis. Wait for volume to come.