Friday, March 30, 2012

Haio's profit continued to rise

Results Update

Haio has just announced its results for QE31/1/2012. Its net profit increased by 15% q-o-q or 43% y-o-y to RM9.1 million while its turnover increased by 12% q-o-q or 9% y-o-y to RM63 million. The improved performance was attributed to better results from the MLM & wholesale divisions while the retail division suffered a decline in profit contribution due to higher A&P expenses- despite higher sales due to the CNY season.

Table: Haio's last 8 quarterly results

Chart 1: Haio's last 28 quarterly results


Haio (at RM2.17) is trading at a current PE of 13 times (based on the last 4 quarters' EPS of 16.64 sen). At this PE multiple, Haio is deemed fully valued.

Technical Outlook

Haio reversed from its long downtrend in October last year. We can see that a higher 'high' and a higher 'low' has formed. Thus, we can say that a medium-term uptrend is in progress.

Chart 2: Haio's weekly chart as at Mar 30, 2012_4.00pm (Source: Quickcharts)


Based on favorable technical outlook, Haio could be a good stock for long-term investment. However, for the stock to rise significantly, its financial results needs to improve further. At its present earning, it is hard to justify a strong rally in the share price.


Anonymous said...

Hi Alex

What is support level for UOA development? UOA currently trade cum dividend of 10sen TE, give rise to yield of 7.2% nett

Alex Lu said...

Hi Hng,

I read about its generous dividend of 10 sen, which is still pending. But it broke to the downside of its triangle at RM1.48. That's a bad sign. the share price may continue its prior downtrend.

I may post on this latter.