March 22, 2010

HAIO - Price Target News

Stock Name: HAIO
Company Name: HAI-O ENTERPRISE BHD
Research House: RHB

KUALA LUMPUR: RHB Research has reduced its fair value (FV) of Hai-O to RM5.20 from RM5.30 after its earnings adjustment.

It said on Monday, March 22 the revised fair value was based on an unchanged 11.5 times CY10 EPS, a 20% discount to its consumer division PE of 14.5 times.

"Together with attractive net dividend yield of 4%-6% per annum, we maintain our Outperform recommendation for the stock," it said.

RHB Research said Hai-O's 9MFY04/10 core net profit of RM56.0 million (+52.7% YoY) was in line with its and consensus expectations, accounting for 71% of full year net profit forecasts respectively.

"We believe this to be in line as 4Q is generally the strongest quarter for the group, accounting for 30-36% of historical full year forecasts," it said.

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