Stock Name: HAIO
Company Name: HAI-O ENTERPRISE BHD
Company Name: HAI-O ENTERPRISE BHD
| Research House: JF APEX | Price Call: SELL | Target Price: 1.90 |
Showing posts with label HAIO. Show all posts
Showing posts with label HAIO. Show all posts
March 25, 2015
December 17, 2014
2QFY15: Another letdown
Stock Name: HAIO
Company Name: HAI-O ENTERPRISE BHD
Company Name: HAI-O ENTERPRISE BHD
| Research House: JF APEX | Price Call: HOLD | Target Price: 2.10 |
June 26, 2014
HAIO - Challenging outlook for FY15F
Stock Name: HAIO
Company Name: HAI-O ENTERPRISE BHD
Company Name: HAI-O ENTERPRISE BHD
| Research House: JF APEX | Price Call: HOLD | Target Price: 2.57 |
April 4, 2013
Affin raises Hai-O to 'buy'
Stock Name: HAIO
Company Name: HAI-O ENTERPRISE BHD
Affin Investment Bank raised its call on Hai-O Enterprise Bhd to 'buy' from 'add', citing a bright growth outlook and strong demand for the marketing firm's products.
Affin said it also raised its target price on the shares of Hai-O to RM2.98 per share from RM2.55 on valuation.
"We understand that management has developed a successful operating strategy for its multi-level marketing division, and is currently experiencing strong rebound in membership growth," Affin said.
The research house also lifted its earnings per share forecast on Hai-O by 2-2.6 per cent for the financial years between 2013 and 2015 citing the company's new membership growth of 16 per cent and on expectations of a stronger sales performance.
"We reckon that Hai-O is a generous company and rewards its shareholders by paying out dividends of at least 50 per cent of its net profit," Affin added.
As of 10.17am, Hai-O's shares inched down 0.4 per cent against the benchmark stock index's 0.2 per cent loss.-- Reuters
Company Name: HAI-O ENTERPRISE BHD
| Research House: AFFIN | Price Call: BUY | Target Price: 2.98 |
Affin Investment Bank raised its call on Hai-O Enterprise Bhd to 'buy' from 'add', citing a bright growth outlook and strong demand for the marketing firm's products.
Affin said it also raised its target price on the shares of Hai-O to RM2.98 per share from RM2.55 on valuation.
"We understand that management has developed a successful operating strategy for its multi-level marketing division, and is currently experiencing strong rebound in membership growth," Affin said.
The research house also lifted its earnings per share forecast on Hai-O by 2-2.6 per cent for the financial years between 2013 and 2015 citing the company's new membership growth of 16 per cent and on expectations of a stronger sales performance.
"We reckon that Hai-O is a generous company and rewards its shareholders by paying out dividends of at least 50 per cent of its net profit," Affin added.
As of 10.17am, Hai-O's shares inched down 0.4 per cent against the benchmark stock index's 0.2 per cent loss.-- Reuters
April 20, 2012
HAI-O update (HAIO MK, Maintain NEUTRAL, FV RM2.03, Last price RM2.18)
Stock Name: HAIO
Company Name: HAI-O ENTERPRISE BHD
Company Name: HAI-O ENTERPRISE BHD
| Research House: OSK | Price Call: HOLD | Target Price: 2.03 |
We recently visited Hai-O, which seems to be slowlyregaining its earnings momentum. Its strategy of focusing on repeat consumerproducts instead of bigticket items is working as the MLM division is showingimprovement. We believe Hai-O would be able to deliver decent results given: i)the recent collaboration with KAEAM Corp on the global distributorship ofbamboo salt, and ii) its bird's nest export business. Maintain NEUTRAL, with FVof RM2.03.
The worst may beover. Hai-O managed to improve on its revenue and earnings in the last twoquarters after eight consecutive quarters of dismal performance, whichindicates that the company might be on the road to recovery. The coreMLM business bounced back with a decent 4.9% y-o-y revenue growth last quarter. Going forward, the managementis confident that Hai-O will be able to deliver satisfactory results.
MLM bounces back. The MLM division hasaround 140k registered members and is adding 2.5k new members monthly. The number of new members has risen steadily from 2k/month to 2.5k/month y-o-y, with management now aimingfor new additions of 3k/month in the near term. Learning from the past, the company has shifted its focus from big-ticket items such as water filters toconsumer-centric products such as beauty and health products, for which sales are consistent and are repeated. We believe the growth momentum in the MLM division issustainable given the company's improved marketing strategy and more balanced product mix. Meanwhile, its Indonesia MLM operation is still relatively small and not making much progress dueto fierce competition and strict regulations. Hai-O is trying to penetrate therelatively untapped 2nd tier cities such as Batam, Medan and PekanBaru for new markets.
Bamboo salt the new star. In early April, Hai-O Marketing signed aglobal distributorship agreement with South Korea's KAEAM Food Corp, the pioneer manufacturer of 'bamboo salt' (garambuloh). Hai-O brought in KAEAM bamboosalt three years ago via an exclusive collaboration, which proved to be timelybecause this product is gaining a strong following, which allows the company to expand into new markets. Elsewhere, Hai-O's new subsidiary ' Yan Ou Holdings SB (YanOu) ' will be sourcing for and processing, trading and distributing bird'snest. Once it obtains the licence toexport bird's nest, this will represent another good revenuestream for the company since the consumption of the product in Asia, especiallyChina, is huge.
Maintain NEUTRAL.Assuming stronger sales for the MLM division, we are marginally revisingupwards our FY13 forecast by 1.7%. Maintain NEUTRAL, with a higher FV of RM2.03,based on 12x FY13 EPS.
Source: OSK188
March 30, 2012
HAIO (FV RM1.99 - NEUTRAL) 9MFY12 Results Review: On a Healthy Growth Path
Stock Name: HAIO
Company Name: HAI-O ENTERPRISE BHD
Company Name: HAI-O ENTERPRISE BHD
| Research House: OSK | Price Call: HOLD | Target Price: 1.99 |
Hai-O's 9MFY12results were in line with consensus but above our forecasts. Revenue and net profitincreased by 3% and 21.7% respectively on the back of better performance in theMLM division. EBIT margin improved from17.5% to 20.7%, thanks to better MLM sales and enhanced margins from thewholesale division. We raise our FY12 and FY13 estimates given the betterresults, which bump up our FV to RM1.99. Maintain NEUTRAL.
Stronger thanexpected. Hai-O's revenue and net profit came in stronger at RM170m andRM24.7m, registering a decent y-o-y growth of 3% and 21.7% respectively. The betterresults were largely underpinned by stronger performance at itsMLM division (revenue +4.9% y-o-y), coupled with lower R&D costs in thetechnology division. On q-oq basis, revenue stood at RM62.8m, 11.7% higherversus RM56.2m in the preceding quarter,while earnings improved from RM7.9m to RM9.1m (+15.2%).
MLM still the pillar.The MLM division's profit surged 18%, propelled by robust sales of its mainproducts as well as new products,coupled with effective incentive trip campaigns for its MLM members. We believethe growth momentum in the MLM division, which contributes 56.1% oftotal revenue, should be sustainable moving forward in view of the company's enhanced marketingstrategies and aggressive recruitment drive for members. The wholesaledivision's revenue trended lower by 8.5% but registered a PBT growth of 16% owingto its high margin products. The revenue and profit generated by the retaildivision were flattish as it rationalized its unprofitable outlets while at thesame time opened more new outlets.
EBIT margin expands. The company's EBIT margin widened 3.2% from 17.5% to 20.7%, mainly driven byhigher sales from the MLM division, better margins from wholesaleproducts, higher rental income and lower R&D costs in other divisions. MaintainNEUTRAL. We revise up our FY12 and FY13 forecasts by 6.2% and 7.1% respectivelyin light of the better reported results. Our FV is raised to RM1.99 as we roll overour valuation from FY12 to FY13 based on 12x PER. Maintain NEUTRAL given the limitedupside in the share price.
Source: OSK188
December 22, 2011
Bouncing Back After 8 Dismal Quarters
Stock Name: HAIO
Company Name: HAI-O ENTERPRISE BHD
Company Name: HAI-O ENTERPRISE BHD
| Research House: OSK | Price Call: HOLD | Target Price: 1.70 |
September 29, 2011
Another muted quarter for Hai-O Enterprise
Stock Name: HAIO
Company Name: HAI-O ENTERPRISE BHD
Hai-O Enterprise Bhd
(Sept 29, RM1.67)
Maintain sell at RM1.66 with target price of RM1.27: Hai-O's topline in the first quarter of FY04/12 declined by 6.9% year-on-year (y-o-y) to RM51 million.
The respective revenue growth of 6.1% y-o-y and 8.7% y-o-y in the retail and wholesale divisions was not enough to offset the 18.3% y-o-y revenue decline in the MLM division. Accounting for 57% of total revenue, the MLM division continued to be plagued by slow recruitment of new members and weak sales.
On the bright side, 1QFY04/12 earnings before interest and tax (Ebit) margin expanded by two percentage points to 21.7% (1QFY04/11: 19.7%), attributed to the increased contribution from the sale of higher margin products (including house brands); lower costs of imported goods due to the stronger ringgit and improvement in operational efficiency and productivity.
Consequently, 1QFY04/12 net profit fell by a smaller 0.9% y-o-y to RM7.7 million (1QFY04/11: RM7.8 million). Results were within both our and consensus expectations.
On a sequential basis, 1QFY04/12 net profit fell sharply by 9.5% on a 12.4% decline in revenue. This was partially attributed to a higher base effect as 4QFY04/11 captured aggressive year-end sales campaign in the MLM division, and sales campaign/year-end stock clearance in the retail division. Coupled with continuing low monthly membership additions, revenue from the MLM division fell by 15.8% quarter on quarter (q-o-q). Revenue from the wholesale and retail divisions fell by a sharper 24.7% q-o-q and 22.9% q-o-q respectively.'' ''
There are no changes to our FY12-14 net earnings forecasts. We remain negative on Hai-O due to slow recovery in the MLM division, which is unlikely to return to the level of robust revenue it reaped in 2009-2010 (more than RM100 million per quarter); a slow takeoff of its MLM operations in Indonesia, and lofty valuations considering its smallish market cap and slow growth outlook. ' Affin IB Research, Sept 29
This article appeared in The Edge Financial Daily, September 30, 2011.
Company Name: HAI-O ENTERPRISE BHD
| Research House: AFFIN | Price Call: SELL | Target Price: 1.27 |
Hai-O Enterprise Bhd
(Sept 29, RM1.67)
Maintain sell at RM1.66 with target price of RM1.27: Hai-O's topline in the first quarter of FY04/12 declined by 6.9% year-on-year (y-o-y) to RM51 million.
The respective revenue growth of 6.1% y-o-y and 8.7% y-o-y in the retail and wholesale divisions was not enough to offset the 18.3% y-o-y revenue decline in the MLM division. Accounting for 57% of total revenue, the MLM division continued to be plagued by slow recruitment of new members and weak sales.
On the bright side, 1QFY04/12 earnings before interest and tax (Ebit) margin expanded by two percentage points to 21.7% (1QFY04/11: 19.7%), attributed to the increased contribution from the sale of higher margin products (including house brands); lower costs of imported goods due to the stronger ringgit and improvement in operational efficiency and productivity.
Consequently, 1QFY04/12 net profit fell by a smaller 0.9% y-o-y to RM7.7 million (1QFY04/11: RM7.8 million). Results were within both our and consensus expectations.
On a sequential basis, 1QFY04/12 net profit fell sharply by 9.5% on a 12.4% decline in revenue. This was partially attributed to a higher base effect as 4QFY04/11 captured aggressive year-end sales campaign in the MLM division, and sales campaign/year-end stock clearance in the retail division. Coupled with continuing low monthly membership additions, revenue from the MLM division fell by 15.8% quarter on quarter (q-o-q). Revenue from the wholesale and retail divisions fell by a sharper 24.7% q-o-q and 22.9% q-o-q respectively.'' ''
There are no changes to our FY12-14 net earnings forecasts. We remain negative on Hai-O due to slow recovery in the MLM division, which is unlikely to return to the level of robust revenue it reaped in 2009-2010 (more than RM100 million per quarter); a slow takeoff of its MLM operations in Indonesia, and lofty valuations considering its smallish market cap and slow growth outlook. ' Affin IB Research, Sept 29
This article appeared in The Edge Financial Daily, September 30, 2011.
OSK Research upgrades Hai-O to Neutral, FV RM1.70
Stock Name: HAIO
Company Name: HAI-O ENTERPRISE BHD
KUALA LUMPUR: OSK Research said HAI-O ENTERPRISE BHD []'s 1QFY12 revenue dropped 6.9% on-year to RM51 million while net profit was down slightly by 0.9% on-year to RM7.7 million, which was below its expectations.
The research house said on Thursday, Sept 29 the drop in revenue was mainly due to lower contribution from the multi-level marketing side which recorded 18.3% on-year sales decline on slower membership growth and lower average sales per distributor.
OSK Research said despite the weaker sales, EBIT margin improved to 21.7% from 19.7% in 1QFY11.
The better margins were due to increased contribution from higher margin products, lower costs of imported goods on stronger RM against USD and general improvement in operational efficiency and productivity.
Net profit however declined due to a higher effective tax rate.
'Given the below than expected results, we cut our FY12/13 earnings forecast by 11.8% - 18.3% respectively. Our fair value is hence reduced to RM1.70. Nonetheless, after the sharp slide in share price, our FV still offers 2.7% upside and hence we upgrade Hai-O from Sell to Neutral,' it said.
Company Name: HAI-O ENTERPRISE BHD
| Research House: OSK | Price Call: HOLD | Target Price: 1.70 |
KUALA LUMPUR: OSK Research said HAI-O ENTERPRISE BHD []'s 1QFY12 revenue dropped 6.9% on-year to RM51 million while net profit was down slightly by 0.9% on-year to RM7.7 million, which was below its expectations.
The research house said on Thursday, Sept 29 the drop in revenue was mainly due to lower contribution from the multi-level marketing side which recorded 18.3% on-year sales decline on slower membership growth and lower average sales per distributor.
OSK Research said despite the weaker sales, EBIT margin improved to 21.7% from 19.7% in 1QFY11.
The better margins were due to increased contribution from higher margin products, lower costs of imported goods on stronger RM against USD and general improvement in operational efficiency and productivity.
Net profit however declined due to a higher effective tax rate.
'Given the below than expected results, we cut our FY12/13 earnings forecast by 11.8% - 18.3% respectively. Our fair value is hence reduced to RM1.70. Nonetheless, after the sharp slide in share price, our FV still offers 2.7% upside and hence we upgrade Hai-O from Sell to Neutral,' it said.
March 24, 2011
HAIO - Hai-O slides on weaker earnings
Stock Name: HAIO
Company Name: HAI-O ENTERPRISE BHD
Research House: RHB
KUALA LUMPUR: HAI-O ENTERPRISE BHD [] shares fell in early trade on Thursday, March 24 after its earnings fell 65% to RM6.34 million for the third quarter ended Jan 31, 2011 from RM18 million a year ago as revenue shrank following lower sales from its multi-level marketing (MLM) division.
At 9.10am, Hai-O fell nine sen to RM2.18 with 115,600 shares traded.
Hai-O's revenue fell to RM57.60 million from RM131.28 million a year ago due mainly due the poorer performance of the MLM division, which is its principal subsidiary.
RHB Research in a note March 24 said it was cautious on Hai-O's MLM division as the effect of the internal restructuring for the division due to the ammendment in the Direct Selling Act (DSA) may continue to impact its membership recruitment drive and slow the growth momentum of its membership base.
'In view of the current skittish and volatile market environment, we believe investors are looking for more earnings stability and reliable returns, which Hai-O would not be able to offer at this juncture, in our opinion.
'We are thus ceasing coverage on the stock, with our last recommendation being an Underperform with an unchanged fair value of RM1.35,' it said.
Company Name: HAI-O ENTERPRISE BHD
Research House: RHB
KUALA LUMPUR: HAI-O ENTERPRISE BHD [] shares fell in early trade on Thursday, March 24 after its earnings fell 65% to RM6.34 million for the third quarter ended Jan 31, 2011 from RM18 million a year ago as revenue shrank following lower sales from its multi-level marketing (MLM) division.
At 9.10am, Hai-O fell nine sen to RM2.18 with 115,600 shares traded.
Hai-O's revenue fell to RM57.60 million from RM131.28 million a year ago due mainly due the poorer performance of the MLM division, which is its principal subsidiary.
RHB Research in a note March 24 said it was cautious on Hai-O's MLM division as the effect of the internal restructuring for the division due to the ammendment in the Direct Selling Act (DSA) may continue to impact its membership recruitment drive and slow the growth momentum of its membership base.
'In view of the current skittish and volatile market environment, we believe investors are looking for more earnings stability and reliable returns, which Hai-O would not be able to offer at this juncture, in our opinion.
'We are thus ceasing coverage on the stock, with our last recommendation being an Underperform with an unchanged fair value of RM1.35,' it said.
HAIO - OSK Research maintains Sell on Hai-O, but ups TP to RM1.93
Stock Name: HAIO
Company Name: HAI-O ENTERPRISE BHD
Research House: OSK
KUALA LUMPUR: OSK Research said Hai-O's nine-month results for the period ended Jan 31, 2011 were within its full year forecast of RM27.2m.
The research house said on Thursday, March 24 that due to its poor multi-level marketing results, revenue plunged 60% to RM165m while net profit fell by an even wider 64.2% to RM20.3m.
'In tandem with the poorer results, YTD EBIT came in at 17.5% versus 19.5% in 9MFY10. Despite the weaker numbers, management says MLM sales have started to pick up.
'We raise our FY12 earnings forecast by 1.7% to RM32.6m to factor in a stronger RM against USD. Our TP is raised to RM1.93 from RM1.61 previously (based on 12x PE) as we roll over our valuation to FY12. Maintain SELL,' OSK Research said.
Company Name: HAI-O ENTERPRISE BHD
Research House: OSK
KUALA LUMPUR: OSK Research said Hai-O's nine-month results for the period ended Jan 31, 2011 were within its full year forecast of RM27.2m.
The research house said on Thursday, March 24 that due to its poor multi-level marketing results, revenue plunged 60% to RM165m while net profit fell by an even wider 64.2% to RM20.3m.
'In tandem with the poorer results, YTD EBIT came in at 17.5% versus 19.5% in 9MFY10. Despite the weaker numbers, management says MLM sales have started to pick up.
'We raise our FY12 earnings forecast by 1.7% to RM32.6m to factor in a stronger RM against USD. Our TP is raised to RM1.93 from RM1.61 previously (based on 12x PE) as we roll over our valuation to FY12. Maintain SELL,' OSK Research said.
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