Haio's net profit increased

Haio has just announced its results for 3Q2008 (which ended 31/1/2008). Its net profit increased by 47% q-o-q or 170% y-o-y to RM13.4 million. Turnover has also increased by 25% q-o-q or 95% y-o-y to RM100.5 million. The company attributed its improved performance to higher sales from the MLM division and higher margin achieved by the wholesale and retails divisions.



Haio (closed at RM3.00 as at March 26th) is now trading at a trailing PE of 5.8 times (based on last 4 quarters' EPS of 52 sen) or at a P/Book of 1.9 times (based on NTA per share of RM1.57 as at 31/1/2008). At this rate of growth, Haio's current price is deemed undemanding.

The share price has recently corrected like the rest of the market. It had eased off the high of RM3.40 to a low of RM2.71. A few rebounds off this low were blocked by the RM3.00 resistance level.


Chart: Haio's weekly chart as at March 26, 2008 (courtesy of Quickcharts)