HAIO financial result update

FY31/7/10
Financial Result
Current quarter vs 1Q09 comparison
Revenue decrease 63% to RM54.8m vs RM148.6m(1Q10) mainly due to lower revenue recorded by MLM division. From company's statement, they need longer time for division and distributors to re-align their business strategies following new rules on new members recruitment and enhancement of stockist management and professionalism.

As a result, company PBT drop 59% to RM10.8m vs RM26.3m(1Q09). EPS for current quarter stood at RM0.039, a 58% drop.

Current quarter vs immediate preceding quarter comparison 
Higher revenue(RM54.8m vs RM98.84(4Q10)) during immediate preceding quarter was contributed strongly by retail division in conjunction with Chinese New Year promotion.  MLM division is going through a consolidation stages as the reason mention above, has also effected revenue in general.

Technical Outlook
HAIO share price is in downtrend. Its immediate resistance is RM3.28, psychological support RM3.00 follow by long term support RM2.75.

Stock Valuation
With EPS RM0.30(ttm), HAIO is currently trading at PE11x. With current situation that effect company MLM division(contribute most revenue), and longer time needed to re-strategist the division. I think the share price is fully value.

Overall
With yesterday's financial announcement, i personally think HAIO MLM Division sales has hit a bottom after new mlm rules kick in. Next quarter can only get better. However, its share price is deemed overprice given its near term uncertainty. Fair value would be RM2.10~RM2.60.

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Branson: KL a good investment destination

This is an article i read from btimes, about the comment from Sir Richard Branson. I have also highlight the important point of this article.

All in all, for Malaysia to attract more interested from foreign company or fund, we need to be more liberal and transparent. Below are the story:


Malaysia is an attractive investment destination but some issues need to be tackled to attract investors, said Virgin Group founder Sir Richard Branson.

"I think Malaysia has a good reputation but some issues like what's happening with your ex-deputy prime minister (Datuk Seri) Anwar (Ibrahim) has damaged the country's reputation among foreign investors. This thing has gone on for some time," he said.

The British billionaire was speaking at the two-day "Dawn of the New Decade: Alternative Investments in Asia" forum, organised by the International Herald Tribune in Kuala Lumpur yesterday.

He was responding to questions on whether Malaysia's current economic and investment policies would be sustainable for future growth and if the political climate could affect investments.

Branson also said that Malaysia should be more liberal and open in its approach to win new investments.

"Malaysia has got a tremendous future. Generally speaking, I think Malaysia has a lot to teach the West. We look forward to learning a lot from you," he said.

The New Economic Model is seeking US$444 billion of investments over the next decade to lift the country to developed nation status.

Branson, whose Virgin Group has a stake in AirAsia's long-haul affiliate AirAsia X, also said Malaysia should split up and privatise large government-owned companies, which account for more than a third of the stock market value to increase competition and woo foreign investors.

"A lot of your companies are run by the government. It will be better if you privatise, break up big ones into smaller firms for them to compete with each other," he said.

Meanwhile, the Malaysian Investment Development Authority chairman, Tan Sri Dr Sulaiman Mahbob said there is a need to liberalise the services sector to attract foreign investments into the country.

Read more: Branson: KL a good investment destination http://www.btimes.com.my/Current_News/BTIMES/articles/jalibo/Article/#ixzz10wx8IzyP

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CSCSTEL technically looking good

Another stock in my watch-list caught my eye today. CSCSTEL has been riding very firmly on support line since 8 Sept 10, which is attractive to accumulate.(it will be awesome if i grab some back then...lol)

The current price(RM1.76) has rise a bit, not far above support still has more upside to come. According to technical chart, looks like an ascending triangle is on his way. It's crucial to break above strong resistance(RM1.84), with high volume for ongoing price hike.

I think with the nearer to closing end of the triangle, break over is more likely then break under as the timing for 3Q financial result announcement, which should be ok.

With positive MACD(cross over and rising from below zero), i think we should ACCUMULATE with care, stop loss if price drop under support.

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