Hai-O Keeping On Top Of Economy
January 26, 2009 | By Monika Mundell | No Comments »
According to a report by TheEdgeDaily earlier this month Hai-O continues to blast their performance amidst a a sluggish economy. According to the report it is due to their health food section which apparently is recession-proof. Research house OSK reported that despite a weakening ringgit on its third quarter which endsJan 31, Hai-O should be able to weather the economic downturn.
They stated:
“While we are concerned over the impact of the depreciating ringgit versus the US dollar on group earnings given that 40% of Hai-O’s raw materials are transacted in US dollar, our house view is that the ringgit will strengthen to RM3.45-RM3.50 and RM3.40-RM3.45 this year and in 2010 respectively. Based on our analysis, a five-sen drop in the ringgit against the dollar would cut our forecast earnings by 0.8%.”
It also noted that Hai-O offered an attractive stock dividend yield of 10%, and wasn’t affected by the last Asian financial crisis.
OSK further said that Hai-O was committed to a 50% payout ratio and had been paying more than 50% of its net profit as dividends over the last two years.
Hai-O continues to attract large numbers of new members to their company and their target market of bumiputera offered great opportunities to grow their mlm division over the future.
OSK said: “Despite the current poor economic conditions which would eventually dampen consumer spending, we are still positive on the company’s MLM division given that 90% of its MLM customers are bumiputeras, of whom the majority are civil servants.”
Hai-O has continued to report great increases in sales ever since we first blogged about the company in the year 2007. Given the current trend they are certainly showing great potential for anybody looking to get started in mlm target="_blank" rel="nofollow" href="http://gobala.linktrackr.com/attractionmarketing-mlmrkeywords">mlm.
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