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
Valuation
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)
Conclusion
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.
Hi Alex
ReplyDeleteWhat is support level for UOA development? UOA currently trade cum dividend of 10sen TE, give rise to yield of 7.2% nett
Hi Hng,
ReplyDeleteI 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.