KLCI Stock - HAIO / 7668 - 2012 Quarter 2

HAI-O ENTERPRISE BERHAD

Company Description

Hai-O Enterprise Berhad is a Malaysia-based company. The principal business of the Company involves wholesaling, retailing, multi-level marketing, pharmaceutical factory and modern Chinese medicinal clinics. The business segments of the Company include wholesale, multi level marketing, retail, manufacturing and others. The wholesale segment includes wholesaling and trading in herbal medicines and healthcare products, herbs and tea. The multi level marketing segment includes operating multi level direct marketing of healthcare and beauty products. The retail segment includes retail chain stores. The manufacturing segment includes manufacturing, producing and distributing pharmaceutical products, alcoholic and non-alcoholic drinks. The others segment includes businesses involving leasing of machinery and equipment, licensed money lender, insurance agent, advertising services, rental income, trading of clocks and investment holding.

Company Info 

Listing Date	1996-12-06
Market Capital (Capital Size)	452,906,231 (Small)
Par Value	RM 0.50
Board	Main
Sector	Trading/Services
Major Industry	Wholesaling of Healthcare Products
Sub Industry	Multi-level Marketing of Healthcare Products
Website	http://www.hai-o.com.my/

My Analysis 

Forecast P/E now	(2.24-0.06)/0.1734 = 12.57 (Moderate)
Target Price	2.25+0.06 = 2.31 (PE 13.0, EPS 0.1734, DPS 0.06)
Decision	Not interested unless stock price strong support above 2.15
Comment	Revenue increased 10.3% and also higher than preceding year corresponding quarter 6.8%, eps increased 1.8% and also higher than preceding year corresponding quarter 28.3%, cash generated from operating and disposal enough to cover all expenses, stronger liquidity ratio at strong level now, lower gearing ratio at below moderate level now, all accounting ratio are good, lower inventory can indicate products demand not much different or lower, main profit contributor MLM growth
First Support Price	2.15
Second Support Price	1.88
Risk Rating	MODERATE

Research House

RHB Target Price	1.35 (2011-03-24)
Affin Target Price	1.27 (2011-09-29)
OSK Target Price	1.7 (2011-12-22)

Accounting Ratio 

Return on Equity	13.96%
Dividend Yield	3.35%
Profit Margin	20.02%
Tax Rate	25.28%
Asset Turnover	0.8156
Net Asset Value Per Share	1.1
Net Tangible Asset per share	1.09
Price/Net Tangible Asset Per Share	1.65
Cash Per Share	0.49
Liquidity Current Ratio	4.5592
Liquidity Quick Ratio	3.4036
Liquidity Cash Ratio	2.7384
Gearing Debt to Equity Ratio	0.207
Gearing Debt to Asset Ratio	0.1658
Working capital per thousand Ringgit sale	57.3%
Days to sell the inventory	82
Days to collect the receivables	39
Days to pay the payables	48

Technical Analysis 

SMA 20	2.257 (Uptrend 33 days)
SMA 50	2.025 (Uptrend)
SMA 100	1.894 (Uptrend)
SMA 200	1.96 (Same)
MACD	0.120439 (Downtrend 4 days)
MACD Histogram	0.011962 (Uptrend 33 days)

My notes based on 2012 quarter 2 report (number in '000):-
- Higher revenue and pbt mainly due to successful MLM members’ sales campaign

- Estimate next 4Q eps after 2012 Q2 result announced = 0.0394*4*1.1 = 0.1734, estimate PE on current price 2.24 = 12.57(DPS 0.075)
- Estimate next 4Q eps after 2012 Q1 result announced = 0.0387*4*1.05 = 0.1625, estimate highest/lowest PE = 11.72/9.38 (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)



Financial Quarter Summary

a_date	year	qrt	h_price	l_price	div	roe	c_roe	rev	c_rev	pbt	c_pbt	prof	c_prof	eps	c_eps	asset	liab	mino	equi	cfo	cfi	cff	cash	fcf	net	final	share	c_share	m_cap	date	prof_m	vat	asset_t	pe	navps	ntaps	p/ntaps	cps	l_cur	l_qui	l_cash	g_de	g_da	avg_w	inv_d	rec_d	pay_d
2011-12-21	2012	2	N/A	N/A	0.02	3.45%	6.84%	56199	107172	11250	22314	7868	15601	0.0394	0.0780	273346	45322	9048	228024	20087	12484	3526	46054	7603	4077	50131	199945	199945	359901	2011-10-31	20.02%	25.28%	0.8156	-	1.1	1.09	1.65	0.49	4.5592	3.4036	2.7384	0.207	0.1658	57.3%	82	39	48
2011-09-28	2012	1	1.98	1.6	-	3.51%	3.51%	50973	50973	11064	11064	7734	7734	0.0387	0.0387	266163	46024	8594	220139	6135	6428	141	46054	293	434	45620	199608	199608	331349	2011-07-31	21.71%	27.35%	0.8242	-	1.06	1.06	1.57	0.44	4.3445	3.0123	2.4282	0.2176	0.1729	54.9%	96	35	48
2011-06-23	2011	4	2.17	1.55	0.055	4.02%	13.55%	58156	223150	12492	41388	8547	28829	0.0428	0.1444	256953	44268	8290	212685	13346	1378	36818	70911	11968	24850	46061	199652	199652	431248	2011-04-30	21.48%	28.09%	0.8684	14.9588	1.02	1.02	2.12	0.41	4.3964	3.0704	2.4436	0.2166	0.1723	50.8%	87	34	44
2011-03-23	2011	3	2.39	2.07	-	3.10%	9.91%	57621	164994	9026	28896	6347	20283	0.0318	0.1016	259940	55243	7872	204697	11145	2383	35192	70911	8762	26430	44481	199654	199654	453214	2011-01-31	15.66%	25.80%	1.015	-	0.99	0.99	2.29	0.4	3.3676	2.3458	1.8158	0.2807	0.2125	39.4%	73	32	49
2010-12-17	2011	2	2.89	2.23	-	2.71%	6.16%	52622	107374	9085	19871	6132	13935	0.0307	0.0698	274392	48049	7947	226343	536	11868	6832	70911	12404	19236	51675	199654	199654	584986	2010-10-31	17.26%	26.97%	1.23	-	1.09	1.09	2.69	0.57	4.973	3.8179	3.1528	0.22	0.1751	42.5%	54	26	31
2010-09-29	2011	1	3.25	2.85	0.02	3.56%	3.56%	54751	54751	10785	10785	7804	7804	0.0391	0.0391	273219	53701	7444	219518	266	11916	6205	70911	12182	18387	52524	199654	199654	650872	2010-07-31	19.70%	26.99%	1.5271	-	1.06	1.06	3.08	0.57	4.3141	3.2122	2.7752	0.2532	0.1965	32.7%	48	16	28
2010-06-25	2010	4	4.0	2.96	0.145	6.62%	33.54%	98837	511064	15460	95627	13939	70597	0.0698	0.3536	279064	68590	7374	210474	68948	19844	28918	50725	49104	20186	70911	199659	199659	822595	2010-04-30	15.64%	5.01%	1.8314	11.652	1.02	1.02	4.04	0.6	3.3262	2.5321	2.1704	0.3377	0.2458	25.2%	38	14	33
2010-03-19	2010	3	4.81	3.6	0.04	8.64%	27.18%	131281	412227	25235	80168	18009	56659	0.2164	0.6808	294528	86099	6561	208429	44087	28104	22600	50725	15983	6617	44108	83227	83227	389502	2010-01-31	19.22%	27.84%	1.8508	-	2.43	2.42	1.93	1.21	2.7674	1.9523	1.4019	0.4265	0.2923	23.4%	48	27	41
2009-12-22	2010	2	10.86	4.36	0.1	9.60%	18.39%	132374	280946	28644	54932	20186	38650	0.2424	0.4638	295407	85222	6626	210185	36074	10847	1149	50725	25227	24078	74803	83273	83327	624547	2009-10-31	21.64%	28.61%	1.7466	-	2.44	2.44	3.07	1.39	2.8408	2.1368	1.6371	0.4187	0.2885	25.2%	43	25	41
2009-09-29	2010	1	8.05	5.75	-	9.70%	9.70%	148572	148572	26287	26287	18463	18463	0.2217	0.2217	275194	84914	6362	190280	19671	1582	647	50725	21253	20606	71331	83273	83273	473823	2009-07-31	17.69%	29.55%	1.7111	-	2.21	2.21	2.57	1.2	2.6026	1.9991	1.4343	0.4617	0.3086	23.7%	39	30	49
2009-06-26	2009	4	5.74	4.42	0.32	9.19%	30.39%	132885	435216	23305	75887	15810	52290	0.1916	0.6337	248207	76168	6306	172039	53427	41766	34270	73334	11661	22609	50725	82521	82521	366393	2009-04-30	17.54%	31.90%	1.7534	7.0069	2.01	2.01	2.21	0.98	2.5519	1.9517	1.3454	0.4596	0.3069	21.5%	36	31	47
2009-03-27	2009	3	4.44	3.32	-	7.38%	22.44%	102129	302331	18562	52582	11989	36480	0.1463	0.4451	236513	73972	5968	162541	24509	35930	26236	73266	11421	37657	35609	81968	81968	273773	2009-01-31	18.18%	33.15%	1.8429	-	1.91	1.91	1.75	0.8	2.5019	1.6972	1.1487	0.4724	0.3128	19.8%	47	26	38
2008-12-18	2009	2	3.34	3.06	0.1	6.38%	14.35%	87292	200202	15338	34020	10889	24491	0.1335	0.3003	249213	78592	5741	170621	19284	42206	2494	73266	22922	25416	47850	81552	81552	249549	2008-10-31	17.57%	27.29%	1.7424	-	2.02	2.02	1.51	1.02	2.516	1.7742	1.3576	0.4767	0.3154	21.5%	46	22	37
2008-09-19	2009	1	3.56	2.86	-	8.44%	8.44%	112910	112910	18682	18682	13602	13602	0.1665	0.1665	237670	76553	5478	161117	9458	22363	35	73266	12905	12940	60326	81706	81706	272898	2008-07-31	16.55%	27.31%	1.7985	-	1.9	1.9	1.76	0.93	2.4389	1.6781	1.2932	0.4919	0.3221	19.7%	46	19	36
2008-06-26	2008	4	4.02	3.0	0.32	13.00%	33.23%	133549	373823	26427	67716	18984	48535	0.2358	0.6028	204110	58038	5500	146072	53765	9244	17415	27672	63009	45594	73266	80519	80519	309192	2008-04-30	19.79%	27.19%	1.8315	6.3705	1.75	1.74	2.21	1.08	2.6556	1.942	1.4953	0.4129	0.2843	25.7%	49	25	46
2008-03-26	2008	3	3.84	3.0	-	10.17%	22.45%	100481	240274	18461	41289	13391	29551	0.1812	0.3998	191514	59899	5244	131615	29973	2687	7086	27672	27286	20200	47872	73917	73917	221751	2008-01-31	18.37%	26.80%	1.5508	-	1.71	1.71	1.75	0.96	2.3379	1.5543	1.1809	0.474	0.3128	27.0%	68	27	53
2007-12-19	2008	2	3.4	2.71	0.08	7.22%	12.83%	80517	139793	12985	22828	9096	16159	0.1353	0.2403	178013	52027	5418	125986	20901	3493	107	27672	17408	17301	44973	67240	67240	205754	2007-10-31	16.13%	27.80%	1.3927	-	1.79	1.79	1.71	1.02	2.428	1.6175	1.3267	0.4315	0.2923	29.9%	72	22	48
2007-09-28	2008	1	3.32	2.95	-	6.00%	6.00%	59276	59276	9843	9843	7063	7063	0.1050	0.1050	159126	41395	5139	117731	5260	4955	9	27672	305	314	27986	67235	67235	212462	2007-07-31	16.61%	29.01%	1.052	-	1.67	1.67	1.89	0.78	2.5855	1.6025	1.2763	0.3677	0.2601	39.0%	103	29	53
2007-06-15	2007	4	N/A	N/A	0.13	6.76%	19.29%	56718	189346	10188	30608	7499	21384	0.1137	0.3241	148964	38084	5214	110880	27803	11050	2722	13641	16753	14031	27672	65977	65977	146468	2007-04-30	17.96%	23.72%	0.7258	6.8495	1.6	1.6	1.39	0.7	2.5038	1.6116	1.2174	0.3604	0.2557	52.9%	133	51	85
2007-03-20	2007	3	N/A	N/A	-	4.71%	12.75%	51401	132628	7504	20420	4967	13443	0.0753	0.2038	149121	43660	5417	105461	14940	8794	8	13640	6146	6154	19794	65964	65964	125331	2007-01-31	14.60%	30.18%	0.3447	-	1.52	1.51	1.26	0.51	2.1364	1.3883	0.7643	0.4364	0.2928	96.4%	268	193	236

Financial Quarter Balance Sheet

year	qrt	Available-for-sale investment (A-0)	Deferred tax assets (A-0)	Financial assets at fair value through profit and loss (A-0)	Goodwill on consolidation (A-0)	Investment properties (A-0)	Prepaid lease payments (A-0)	Property, plant and equipment (A-0)	Trade receivables (A-0)	Cash and cash equivalents (A-1)	Financial assets at fair value through profit and loss (A-1)	Inventories (A-1)	Trade receivables (A-1)	Deferred tax liabilities (L-0)	Loans & borrowings (L-0)	Current tax liabilities (L-1)	Loans & borrowings (L-1)	Provision for liabilities (L-1)	Trade and other payables (L-1)	Minority interest (M-1)
2012	2	226	2582	1329	85	33960	-	71038	445	50131	48181	41488	23881	-	9421	3064	4881	3522	24434	9048
2012	1	226	2284	1269	85	34083	-	71312	510	45620	41792	47956	21026	-	10026	2415	7025	2477	24081	8594
2011	4	226	2550	1256	85	33250	-	72181	615	46054	35537	44274	20925	145	10734	1787	5679	3371	22552	8290
2011	3	226	3328	1341	85	31886	1657	72954	507	44481	35298	44893	23284	-	11308	1988	6371	5565	30011	7872
2011	2	226	3281	1316	85	26493	1665	61562	223	51675	62149	41703	24014	-	11946	1846	5616	5088	23553	7947
2011	1	-	3107	1427	85	26609	1674	61843	914	52524	61699	45351	17986	-	12543	3951	5426	5944	25837	7444
2010	4	450	3299	-	85	26842	1682	61739	830	70911	49243	43959	20024	43	13187	7035	4792	5070	38463	7374
2010	3	-	2528	1113	85	26921	1691	61640	998	44108	56979	58773	39692	-	13991	12608	3689	5590	50221	6561
2010	2	-	2162	1053	85	27703	1699	60559	1620	74803	40757	49694	35272	-	14635	13311	4404	4689	48183	6626
2010	1	-	1825	1197	85	28004	1708	59807	1248	71331	28596	42050	39343	-	15246	9137	3980	4215	52336	6362
2009	4	-	2158	1156	85	28414	1716	59440	1215	50725	30480	36228	36590	79	15733	6767	3728	2780	47081	6306
2009	3	-	1851	1064	85	28495	1725	58343	1408	35609	30296	46171	31466	73	16526	5613	4213	9656	37891	5968
2009	2	-	1813	2226	85	28968	1733	58245	1523	47850	35583	45587	25600	68	17070	9784	7130	8523	36017	5741
2009	1	-	1684	2570	85	33015	1742	54235	1393	60326	15470	44591	22559	154	17787	8607	5962	8571	35472	5478
2008	4	-	1684	2741	85	20922	1751	21597	1373	73266	13424	41374	25893	64	-	7791	5214	5617	39352	5500
2008	3	-	983	4067	274	21345	1759	21686	1390	47872	22850	46928	22360	13	-	6556	9776	7134	36420	5244
2008	2	-	983	4546	274	21365	1768	21482	1504	44973	23925	42091	15102	96	-	6183	8996	9005	27747	5418
2008	1	-	983	4713	274	21565	1776	21803	1437	27986	24622	40521	13446	175	-	3954	7642	8716	20908	5139
2007	4	-	1080	5534	274	21580	1785	22005	1497	27672	18622	33927	14988	58	-	3206	7396	5821	21603	5214
2007	3	-	416	7807	305	21715	1746	22133	1820	19794	13540	32627	27218	-	45	2862	7645	4327	28781	5417

Financial Quarter Income Statement

year	qrt	Revenue	Income tax expense	Finance/interest costs	Other income	Administrative/Operating expenses	Minority interest	Finance/interest income
2012	2	56199	2844	200	1334	46321	538	238
2012	1	50973	3026	196	1171	41107	304	223
2011	4	58156	3509	190	1381	47107	436	252
2011	3	57621	2329	232	849	49439	350	227
2011	2	52622	2450	220	890	44422	503	215
2011	1	54751	2911	206	1586	45531	70	185
2010	4	98837	774	188	204	83597	747	204
2010	3	131281	7026	126	1646	107718	200	152
2010	2	132374	8194	312	2297	105957	264	242
2010	1	148572	7768	206	1338	123589	56	172
2009	4	132885	7435	208	1193	110702	60	137
2009	3	102129	6153	262	1259	84752	420	188
2009	2	87292	4186	478	1251	73027	263	300
2009	1	112910	5102	207	830	95180	22	329
2008	4	133549	7186	53	1384	108775	257	322
2008	3	100481	4947	142	679	82773	123	216
2008	2	80517	3610	96	1194	68828	279	198
2008	1	59276	2855	101	830	50296	75	134
2007	4	56718	2417	34	1687	48416	272	233
2007	3	51401	2265	106	614	44515	272	110

Financial Quarter Segments Revenue

year	qrt	Others	Elimination/Adjustment	Wholesale	Retails	Manufacturing	Multi-Level Marketing
2012	2	3464	13566	23571	10740	-	31990	-
2012	1	3619	13934	23845	8658	-	28785	-
2011	4	2258	22624	31670	11224	1449	34179
2011	3	3022	32547	43902	13107	1099	29037
2011	2	2879	13275	23668	11260	1360	26731
2011	1	3148	15706	21944	8158	1966	35241
2010	4	4309	31680	38635	13594	1396	72583
2010	3	2964	61411	72477	9579	1431	106241
2010	2	3516	62615	70577	10787	1201	108908
2010	1	2714	39841	46278	7906	1196	130319	-
2009	4	2817	41567	48027	9394	1672	112502	-
2009	3	3064	47257	54299	11784	1305	78934	-
2009	2	2208	24787	32785	10042	1146	65898	-
2009	1	1805	34297	44686	7966	1202	91548	-
2008	4	2229	41283	53137	11029	1144	107292	-
2008	3	2623	45989	57834	10542	760	74711	-
2008	2	2302	23677	31619	10029	707	59538	-
2008	1	1744	17080	25491	7892	1182	40046	-
2007	4	2111	25534	34751	11811	763	32816	-
2007	3	1868	18345	30246	8100	948	28584	-

Financial Quarter Segments Profit

year	qrt	Others	Elimination/Adjustment	Wholesale	Retails	Manufacturing	Multi-Level Marketing	Technology
2012	2	1409	229	2899	1646	-	5486	-
2012	1	1145	494	4351	651	-	4396	-
2011	4	1017	1409	1573	1212	157	8076	1014
2011	3	1065	407	3031	1281	39	4351	330
2011	2	1205	754	3611	1783	214	3540	508
2011	1	1087	790	2590	307	241	6361	570
2010	4	1432	1500	744	1887	224	11811	332
2010	3	1640	143	2951	631	38	20468	375
2010	2	1436	615	5450	1267	241	21801	865
2010	1	265	205	4128	305	209	21209	-
2009	4	460	1164	402	661	338	20810	-
2009	3	593	8	2934	1125	178	13814	-
2009	2	959	340	3898	799	79	10121	-
2009	1	139	309	3606	276	267	14241	-
2008	4	191	20429	24424	594	154	21237	-
2008	3	358	395	7389	171	80	10784	-
2008	2	336	256	2072	1074	55	9091	-
2008	1	701	137	3236	160	165	5685	-
2007	4	971	5972	10373	702	73	3904	-
2007	3	406	3071	6033	174	48	4258	-

Short form reference
a_date = announcement date, yr = financial year end, qrt = quarter
h_price = stock highest price during the quarter, l_price = stock lowest price during the quarter
div = dividend recommend or declare in the quarter, roe = return on equity
c_roe = cumulative of return on equity during the financial year
rev = revenue in the current quarter, c_rev = cumulative of revenue during the financial year
pbt = profit before tax in the current quarter, c_pbt = cumulative of profit before tax during the financial year
eps = earnings per share in the current quarter, c_eps = cumulative of earnings per share during the financial year
asset = total asset, liab = total liability, mino = minority interest, equi = total equity
cfo = net cash flow from operating activities, cfi = net cash flow from investing activities
cff = net cash flow from financing activities, cash = cash and cash equivalents as at beginning of financial year
final = cash and cash equivalents as at current financial period ended
share = diluted/basic weighted average number of ordinary shares
c_share = cumulative of diluted/basic weighted average number of ordinary shares during the financial year
m_cap = market capital at announcement date of quarterly report, date = current financial period ended date
prof_m = profit margin, vat = income tax rate, pe = price earning per share ratio of recent four quarter
navps = net asset value per share, ntaps = net tangible asset per share, cps = cash per share
l_cur = liquidity current ratio, l_qui = liquidity quick ratio, l_cash = liquidity cash ratio
g_de = gearing debt to equity ratio, g_da = gearing debt to assets ratio
avg_w = working capital per thousand Ringgit sale
inv_d = days to sell the inventory, rec_d = days to collect the receivables
pay_d = days to pay the payables



6-Months Historical Chart from shareinvestor.com

CURRENT

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●CHANGES IN SHAREHOLDING
●ANNUAL REPORTS

HISTORICAL

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●CHANGES IN SHAREHOLDING

ARCHIVES

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●CHANGES IN SHAREHOLDING

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1-Years Historical Chart from shareinvestor.com

5-Years Historical Chart from shareinvestor.com