Result UpdateFor QE31/10/2020, Haio's net profit was relatively unchanged q-o-q but rose 41% y-o-y to RM10.4 million while revenue dropped 7.2% q-o-q or 3.3% y-o-y to RM66 million. Overall revenue dropped q-o-q mainly attributable to lower revenue generated from the MLM division as members recruitment and renewals have normalized and business activities and delivery service in East Malaysia were impacted by the third wave of COVID-19 pandemic outbreak. Wholesale revenue was maintained while retail revenue rose 4.2%. Profits was maintained partly due to one-off gain from the disposal of vintage tea amounting to RM 0.8 million.
Table: Haio's last 8 quarterly results
Graph: Haio's last 62 quarterly results
Haio's financial position as at 31/10/2020 is deemed healthy with current ratio at 4.1 times and total liabilities to total equity at 0.19 time.
Haio (closed at RM2.32 last Friday) is trading at a trailing PE of 17.8 times (based on last 4 quarters' EPS of 13 sen). Haio paid out dividend totaling 8 sen in the past 4 quarters- giving the stock a decent dividend yield of 3.4%. Based on these, Haio is deemed fairly valued.
Haio seems to have on a recovery path, after its share prices exhibit higher "peaks" and "higher troughs" since Mar this year. Weakly MACD is now above the zero line, which indicates the share prices are likely to go into an uptrend.
Chart 1: Haio's weekly chart as at Dec 18, 2020 (Source: Malaysiastock.biz)
Chart 2: Haio's monthly chart as at Dec 18, 2020 (Source: Malaysiastock.biz)
Based on steadier financial performance, healthy financial position and mildly positive technical outlook, Haio is a good stock for long-term investment.
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