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