KLCI Stock - HAIO / 7668 - 2012 Quarter 1

Company Info

Market Capital (Capital Size)	396,292,952 (Small)
Par Value	RM 0.50

My Analysis

Forecast P/E now	(1.96-0.06)/0.1625 = 11.69 (High)
Target Price	1.62+0.06 = 1.68 (PE 10.0, EPS 0.1625, DPS 0.06)
Decision	Not interested unless stock price sustain above 1.8
Comment	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 Price	1.9
Second Support Price	1.8
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 (2011-09-29)

Accounting Ratio

Return on Equity	13.34%
Dividend Yield	2.81%
Profit Margin	21.71%
Tax Rate	27.35%
Asset Turnover	0.8242
Net Asset Value Per Share	1.06
Net Tangible Asset per share	1.06
Price/Net Tangible Asset Per Share	1.57
Cash Per Share	0.44
Liquidity Current Ratio	4.3445
Liquidity Quick Ratio	3.0123
Liquidity Cash Ratio	2.4282
Gearing Debt to Equity Ratio	0.2176
Gearing Debt to Asset Ratio	0.1729
Working capital per thousand Ringgit sale	54.9%
Days to sell the inventory	96
Days to collect the receivables	35
Days to pay the payables	48

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)