Short Note On Hai-O Earnings

Blogged last April Review Of Hai-O and More On HaiO

HaiO reported its earnings last Friday.

Quarterly rpt on consolidated results for the financial period ended 31/7/2008

Quarterly earnings was at 13.602 million, which is a huge worry, for its previous quarter in June 2008, HaiO reported reported earnings of 18.942 million. (see Quarterly rpt on consolidated results for the financial period ended 30/4/2008 )

And despite the tremendous weakness on a quarter-to-quarter comparison, folks at OSK has discounted it by suggesting that it's mere seasonal weakness. Here's what OSK said in their earnings review of HaiO's earnings.

• Hai-O registered another set of strong results with 1Q earnings of RM13.6m, 70% higher than our estimates, while revenue and earnings expanded 90.5% and 94.3% respectively. All divisions recorded positive revenue growth, especially the MLM division, which grew 126.6%. Q-o-q earnings were, however, 28.3% lower due to seasonal factors as 1Q is the weakest quarter for the entire year. We are reducing our earnings forecast and target price despite the strong 1Q earnings in view of the weaker consumer sentiment due to higher fuel price, CPI and bearish market. Nevertheless, Hai-O is still a BUY with target price of RM4.50.