YSPSAH 2026 AGM, Bangi Resort Hotel

I attend the AGM of YSPSAH held at Bangi Resort Hotel with my wife today. After all, YSPSAH is my second largest shareholding in my portfolio. Hence, I keep track of this company closely.

We depart from our home at 8:30 AM and arrive at the venue around 9:37 AM. The traffic is terrible.

As I am late for the meeting, I rush into the ballroom after I reach the venue. I ask my wife to park the car for me as I worry that I might miss the Q&A session. 

I got no time to take picture as well.

There is no financial result briefing from the Board, as usual. As soon as I enter the Ballroom, the Q&A session started.

I have a chance to post my questions as well. This is the summary that I have obtained.

• The prepayment of plant and equipment (RM 19.9 M) is meant for the new injection plant.
• Dr. Lee (MD) said that the new injection plant II will be ready by this year. Then, they will renovate the old injection plant. The management planned to build a line that can handle large batch size.
• A shareholder mentioned that the product of YSPSAH is priced lower than competitor according to his survey. Nevertheless, Dr. Lee denied that and mentioned that his product is always priced higher than others (coz. better servicing). 
• Dr. Lee mentioned that YSPSAH focuses mainly on private hospital, clinics and pharmacies. They market their products via building physical relations with customers to have good bonding with them (to build trust). Sometimes customers prefer to buy from YSPSAH as delivery is faster. However, for customers at some countries like Cambodia, they need an agent to help them coz it is too far.
• A shareholder mentioned to me that YSPSAH is amongst the top sales company within the private healthcare sector.
• Dr. Lee mentioned that the company revenue hardly grows since FY2024 because customers have frontloaded the medications during post-covid period. Plus, there is a upgrade in the operating facilities at Bangi plant (some old machines in the old injection plant is not functioning), hindering them to take more orders.

The Board gave each shareholder 1+1 door gift (SHINE brand supplements, consisting of probiotics, calcium pill, Vitamin pill). Why 1+1?? There is a shareholder requesting for extra supplement to be given out to each shareholder because there are many extra door gifts as many shareholders did not attend the meeting. Below is the door gift from YSPSAH during the AGM:

Meals include nasi goreng kampung, fried wanton, pastry and fruits. Taste so-so.. My wife ate only the pastry.

Overall, the Board has answered all my questions. I passed the marketing stretegies of Dr. Lee to Google AI and the AI told me this:

The management’s logic is based on a classic business trade-off: you cannot be the cheapest option and the highest-service option at the same time.

By avoiding government tenders, YSPSAH frees up the cash and resources needed to fund their expensive, high-touch private sector strategy.

Here is the direct linkage between the two decisions:

1. The Cost vs. Service Linkage

• Government Tenders Demand Low Costs: Government contracts are won by bidding the absolute lowest price per pill. To survive on these razor-thin margins, a company must cut all extra costs. They cannot afford to spend money on a large sales force or fast, customized delivery fleets.
• The Private Sector Demands Premium Service: Private clinics and pharmacies are willing to pay a higher price for medications if it means they get immediate delivery, flexible credit terms, and face-to-face relationship management.
• The Strategic Link: If YSPSAH lowered its prices to win government tenders, it would lose the profit margins needed to pay for the fast delivery and physical relationship building that the private sector expects.

2. The Resource Allocation Linkage

• A Dedicated Sales Fleet: Building physical relationships requires hiring, training, and fueling a massive team of sales representatives to visit thousands of individual clinics.
• A Rapid Delivery Fleet: Providing fast delivery requires decentralized warehouses, local delivery drivers, and advanced tracking logistics.
• The Strategic Link: Government buyers do not care about sales rep visits or 24-hour delivery; they buy in bulk months in advance. If YSPSAH spent its budget bidding on government tenders, it would not have the capital to invest in the sales reps and delivery trucks needed to win over private doctors.

Summary

The management is choosing margin over volume. They are walking away from low-profit government volume so they can reinvest their money into superior service, allowing them to charge premium prices to private clients.