3Q08 net profit grew 34.7% YoY. Pharmesis achieved a net profit of RMB0.1m in 3Q08, on the back of a 5.8% YoY growth in revenue to RMB25.2m. For 9M08, net profit was RMB5.7m, compared with RMB0.3m in 9M07, driven by the stronger earnings in the first two quarters.

Lowering estimates. While Pharmesis is in a strong cash position, the
weakening global economy is expected to pose challenges, especially for its
high end health tonic products. Management intends to continue focusing its
marketing efforts on its ATT and TCM products, to continue growing its revenue. Taking into account its performance for 3Q08, SGX Research Incentive Scheme are lowering earnings estimate for FY08 to RMB7.0m (EPS: 3.5 RMB¢) from RMB9.3m earlier.

Target S$0.09