Well Done Hai-o......Target Price RM5.00

As projected, Hai-o has chalked up an impressive gain of 16% in turnover and 7% increase in profit after tax (EPS 63 sen) despite this challenging economic environment.

Hai-o has proposed final dividend of 32 sen per share, which translate at dividend yield of 8%............

The Company has Net Cash of RM50Million..........

At P/E 8, Hai-o should worth RM5.00 ..................

RHB rates Hai-o buy with target price of RM5.10 while OSK and Affin has up the target price to RM5.20 in today report

Read Report from Bernama, Sinchew and Nanyang

Hai-O Pre-tax Profit Up 12 Pct To RM75.539 Mln

KUALA LUMPUR, June 26 (Bernama) -- Hai-O Enterprise Bhd has announced that its pre-tax profit for the year ended April 30, 2009 increased 12 percent to RM75.539 million from RM67.718 million, the previous year.

Its revenue rose 16 percent to RM435.176 million from RM373.823 million with the main contributors being its principal subsidiaries, the multi-level marketing (MLM) and manufacturing divisions.

In the fourth quarter, its pre-tax profit fell to RM22.957 million from RM26.427 million in the corresponding quarter of the previous year as revenue fell to RM132.845 million from RM133.549 million.

While the revenue and profit contribution from its MLM division -- it accounted for almost 80 percent and 77 percent of the total Group revenue and profit respectively -- was higher, the contribution of the wholesale division dropped.

The drop was mainly due to the slowdown in domestic consumption as consumers turned more cautious in their spending and some writing down of inventory, it explained.

For the retail division, the success of its house brand products promotion had increased the profit margin contribution to the Group, Hai-0 Enterprise said.

The manufacturing division recorded an impressive growth for this financial year with more Original Equipment Manufacturing (OEM) contracts secured in hand, with revenue and profit almost doubling compared to last year, it said.

The Group had during the financial year emphasised substantially on advertising and promotion activities, especially in the MLM and retail divisions.

A higher finance cost incurred on term loan borrowing had further increased the operating costs and higher effective tax rate due mainly to certain expenses which were not deductible for tax purposes and under provisions in prior years lowered the profit, it said.

The Group stated that next year would be another challenging one as the slowing down in the world economy had not shown any significant recovery yet, and consumers are still very cautious in their spending.

The Group is also taking the necessary action to mitigate the impact such as continuing with its rebranding efforts, introducing more effective advertising and promotion activities while intensifying the recruitment campaign for new members.

In view of the current momentum force in the MLM division, the Group is anticipating that it will continue to record growth.

The wholesale division will concentrate on promoting its key healthcare products to a wider market, especially in the retail pharmaceutical segment and to secure more branded products agency from China.

The retail division will continue its networking expansion plan by opening new outlets, whereas the manufacturing division will focus on securing more OEM contracts.

The company has maintained its dividend policy of paying a 50 percent profit after tax as dividend, and hence the Hai-O Enteprise Board of Directors have proposed a final dividend of 32 sen per share less tax.

This means a total of 42 sen was declared in respect of the financial year ended April 30, 2009.

-- BERNAMA

http://www.chinapress.com.my/content_new.asp?dt=2009-06-27&sec=business&art=0627bsa009a12.txt


海鷗營業額勁揚16%報4.3億（吉隆坡26日訊）海鷗（HAIO，7668，主板貿易）本財年取得更高的營業額，截至2009年4月30日，錄得4億3518萬令吉，比上財年同期的3億7382萬令吉，勁揚16%。
海鷗發佈文告說，營業額增加，主要來自主要子公司，即直銷部和製造業務部。
集團稅前盈利也相應提高12%至7554萬令吉，相較之下，上財年稅前盈利為6772萬令吉。
文告說，集團認為下財年將是另一個充滿挑戰的1年，上財年開始的環球經濟放緩，至今尚沒任何明顯復甦跡象，消費者仍保持謹慎消費態度。
不過，海鷗董事局認為，集團在一個不明朗的環境中，將能繼續交出令人滿意的成績。
另外，海鷗目前維持派發50%稅后盈利作為股息的政策，董事局也建議每普通股派發32仙年終股息。
這意味截至2009年4月30日，海鷗已派發總計42仙的股息。

http://www.sinchew-i.com/node/100490?tid=27

海鷗全年淨利揚7.2%

2009-06-26 21:22

（吉隆坡）海鷗企業（HAIO,7668,主板貿服組）直銷和製造業務表現 亮眼，截至2009年4月30日止財政年，集團淨利取得7.2%成長，達5203萬9000令吉，前期為4853萬5000令吉。

全年營業額也取得16.41%的成長達4億3517萬6000令吉，前期為3億7382萬3000令吉。

不過受馬幣疲軟和註銷存貨價值影響，導致第4季的淨利下跌22.7%至1467萬4令吉，前期為1898萬4000令吉；營業額也稍挫0.53%至1億3284萬5000令吉，前期為1億3354萬9000令吉。

這間公司董事部建議派發32仙終期股息，使全年股息高達42仙。

星洲互動‧2009.06.26

Hai-o---Flying like an eagle

Good results coming ...P/E 7, Dividend Yield 8%..........A Definite Buy....

Expected Result announcement date:25/26 June 09(Refer to Bloomberg Terminal)
Target Price :RM 4.80- 5.00 (within two weeks and one month)
Accuracy : 90% Should beat analyst expectation....RHB rated the shares at RM4.40
Expected EPS : 65 sen
Expected Dividend : 30-40sen per share
Gearing: Net Cash

Hai-O sees growth despite slowdown

Aggressive marketing, MLM to help boost sales

KUALA LUMPUR: Hai-O Enterprise Bhd, a wholesaler and retailer of Chinese herbs and medicine, expects to achieve 10% growth in revenue this year despite the global economic slowdown.

Managing director Tan Kai Hee said the positive outlook was based on the adoption of an aggressive marketing strategy and support from its multi-level marketing (MLM) division.

“We will make use of our existing marketing tools and put in more budget for advertising and promotion (A&P) activities,” he said after the signing of a sole distributorship agreement between Hai-O and Yunnan Baiyao Group Co Ltd yesterday.

The company allocates about RM5mil a year for A&P activities.

For the financial year ended April 30, 2008, Hai-O’s revenue jumped 97% year-on-year to RM373.8mil, of which 70% came from the MLM division.

For the nine months ended Jan 31, its revenue rose to RM302.33mil from RM240.27mil in the previous corresponding period.

Tan said the company was still positive on its growth although it expected to see a decline in consumers’ purchasing power due to the recession. “We will make more aggressive efforts to achieve it,” he said.

He said Hai-O hoped the strategic alliance with Yunnan Baiyao, a traditional Chinese medicine manufacturer, would boost the company’s long-term commitment to helping Malaysians pursue a healthier lifestyle.

Under the agreement, Hai-O would be responsble for the introduction of 19 Yunnan Baiyao and Yun Feng brands of products.

Tan said the products would be introduced to the local market in the second half.

“Besides Hai-O’s 60 chain stores and major Chinese medical halls nationwide, the products will also be sold at hypermarkets and major pharmacies,” he said.

Yunnan Baiyao overseas business general manager Wei Bo said the company was confident its products would be well-received in Malaysia.

“This is a long-term partnership with Hai-O and we expect to record yearly sales of RM10mil from the Malaysian market,” he said. — Bernama

財報開講預期與券商相近海鷗財測獲維持（吉隆坡17日訊）海鷗（HAIO，7668，主板貿易）管理層預期今年營業額將成長10%，與券商預測相近，維持跑贏大市評級。
海鷗董事經理陳凱希昨日指出，透過積極的分銷策略和多層次傳銷（MLM）網絡，海鷗現財年營業額料可按年成長10%。
過去海鷗營業額按年增長20%，但如今市場消費放緩，才將預測收小至10%。
興業證券研究在報告中指出，上述預測與該行預測海鷗本財年營業額增長率將達9.6%相近。
“但由于19項新代理產品的詳情不明確，因此我們未將其貢獻納入財測考量。”
不過，該行仍維持海鷗“跑贏大市”投資評級，合理價4.40令吉。
海鷗全日窄幅波，走勢介于跌2仙至4仙之間，相等于4.16至4.18令吉。
閉市時，海鷗報4.18令吉，跌2仙，成交量8萬3300股。
不過，海鷗稍晚針對媒體報導公司作10%增長率的預測，向馬交所報備指出，這是公司內部設定的目標，並不是有意作出的財測

海鸥企业直销部门　可获按年成长

二零零九年四月二日 晚上十一时三十分

（吉隆坡2日讯）据艾芬投资银行透露，海鸥企业有限公司（HAIO，7668，主板贸易服务组）的多层次直销销售预料将在2009财政年取得5.4%按年成长。

它在一份研究报告中指出：“这促使我们提高该公司2009财政年的净收益预测12%，以及2010和2011年升幅各为12.9%和13.4%。”

艾芬投资银行称，该公司成功从大马人口所有主流领域取得成长。

它说：“尽管在缓慢经济环境中，主要重估催化剂是来自高周息率及收益弹力。”

艾芬投银表示，继08年9至10月大幅下滑后，海鸥企业的多层次直销部门将可能获得改善。

多层次直销部门贡献海鸥企业2009年第2财季总收益的76%，及在2008财政年占了75.3%。

该投资银行认为，海鸥企业的股息政策将维持在50%。

美元影响减弱

与此同时，兴业研究则维持对海鸥企业跑赢大市评级不变，因该公司仍可在2009年减低美元的影响。

在其研究报告中，它说，在2008年，公司约60%商品是以美元计算，比较目前只有40%。

这主要是因为批发部门的低需求，及消费购买力已从瘦身产品转至过滤器。

兴业研究补充：“我们预料美元每加强1%，将导致其09至11财政年的收支平衡下滑1.2至1.3%。”

该研究公司已上调海鸥企业2009财政年的预测2.5%，以反映出批发部门高于预测的贡献。

不过，它却下调该公司2010至2011财政年预测5.6至6.3%，以反映出疲弱消费开销产生的低分销商生产力。

它说：“我们有信心海鸥企业可达到其最低50%股息派发政策，这可转为2009财政年7%的净周息率。”

净利大唱丰收

此外，该集团业绩大唱丰收，在截至2009年1月31日为止有待审查的9个月业绩中，所获得净利由去年的2955万1000令吉挺涨至3648万令吉。

该公司的税前盈利也告增加，由一年前的4128万9000令吉扬升至5258万2000令吉。

在营业额方面，由前期的2亿4027万4000令吉增至3亿零233万1000令吉，而每股收益由去年的40.07仙挺至44.56仙。