Sponsor by Innity

Sponsor by cwyeoh

Sponsor by Nuffnang

Saturday, October 29, 2011

KLCI Stock - HAIO / 7668 - 2012 Quarter 1

Company Info
Market Capital (Capital Size)396,292,952 (Small)
Par ValueRM 0.50

My Analysis
Forecast P/E now(1.96-0.06)/0.1625 = 11.69 (High)
Target Price1.62+0.06 = 1.68 (PE 10.0, EPS 0.1625, DPS 0.06)
DecisionNot interested unless stock price sustain above 1.8
Revenue decreased 12.4% and also lower than preceding year corresponding quarter 6.9%, eps decreased 9.6% and also lower than preceding year corresponding quarter 1%, cash generated from operating more than enough to cover financing expenses but still spent 0.9% of Group cash to cover investing expenses, slightly weaker liquidity ratio at strong level now, slightly higher gearing ratio at below moderate level now, all accounting ratio are good, inventory increasing can indicate products demand increase, wholesale division got improved products margin
First Support Price1.9
Second Support Price1.8

Research House
RHB Target Price1.35 (2011-03-24)
Affin Target Price1.27 (2011-09-29)
OSK Target Price1.7 (2011-09-29)

Accounting Ratio
Return on Equity13.34%
Dividend Yield2.81%
Profit Margin21.71%
Tax Rate27.35%
Asset Turnover0.8242
Net Asset Value Per Share1.06
Net Tangible Asset per share1.06
Price/Net Tangible Asset Per Share1.57
Cash Per Share0.44
Liquidity Current Ratio4.3445
Liquidity Quick Ratio3.0123
Liquidity Cash Ratio2.4282
Gearing Debt to Equity Ratio0.2176
Gearing Debt to Asset Ratio0.1729
Working capital per thousand Ringgit sale54.9%
Days to sell the inventory96
Days to collect the receivables35
Days to pay the payables48

My notes based on 2012 quarter 1 report (number in '000):-
- Lower revenue than FY11Q1 mainly due to lower contribution from its principal subsidiary, the multi-level marketing (“MLM”) division which was attributable to the slowdown in recruitment of new members and lower level of sales from its members however revenue from the wholesale and retail divisions increased mainly due to the aggressive marketing strategies of the wholesale division and additional revenue generated from 4 new outlets set up by the retail division

- Higher pbt than FY11Q1 due to higher operating margin of 22% as compared to 20% for the same corresponding quarter in the previous year due to the increased contribution from higher margin products, lower costs of imported goods due to the strengthening of Ringgit Malaysia and general improvement in operational efficiency and productivity

- Lower revenue than FY11Q4 mainly due to lower sales as previous quarter got aggressive year-end sales compaign and above reason

- Lower pbt than FY11Q4 due to above reason however higher pbt in wholesale division due to greater contribution from high margin products coupled with the lower cost of imported goods

- Estimate next 4Q eps after 2012 Q1 result announced = 0.0387*4*1.05 = 0.1625, estimate PE on current price 2.16 = 13.31(DPS 0.075)
- Estimate next 4Q eps after 2011 Q4 result announced = (0.0428+0.0318)*2*1.05 = 0.1567, estimate highest/lowest PE = 13.37/9.41 (DPS 0.075)
- Estimate next 4Q eps after 2011 Q3 result announced = 0.0318*4*1.05 = 0.1336, estimate highest/lowest PE = 17.33/14.93 (DPS 0.075)
- Estimate next 4Q eps after 2011 Q2 result announced = 0.0307*4*0.95 = 0.1167, estimate highest/lowest PE = 23.91/18.25 (DPS 0.1)
- Estimate next 4Q eps after 2011 Q1 result announced = 0.0391*4 = 0.1564, estimate highest/lowest PE = 20.01/17.46 (DPS 0.12)
- Estimate next 4Q eps after 2010 Q4 result announced = 0.0714*4 = 0.2856*1.1(10% QbQ improvement adjustment) = 0.3142, estimate highest/lowest PE = 12.16/8.78 (DPS 0.2)
- Estimate next 4Q eps after 2010 Q3 result announced = 0.3729, estimate highest/lowest PE = 12.42/9.17 (DPS 0.18)
- Estimate next 4Q eps after 2010 Q2 result announced = 0.2424*4 = 0.9696, estimate highest/lowest PE = 10.78/7.44(DPS 0.42)
- Estimate next 4Q eps after 2010 Q1 result announced = 0.2217*4 = 0.8868, estimate highest/lowest PE = 8.54/6.33 (DPS 0.42)
- Estimate next 4Q eps after 2009 Q4 result announced = 0.1778*4 = 0.7112, estimate highest/lowest PE = 7.44/5.76 (DPS 0.4)
- Estimate next 4Q eps after 2009 Q3 result announced = 0.1463*4 = 0.5852, estimate highest/lowest PE = 6.9/5.06 (DPS 0.4)

HAIO latest news (English)

HAIO latest news (Chinese)

No comments:

Post a Comment