Beshom

After 46 outstanding years as Hai-O Enterprise Bhd, we look forward to the future as we preserve the best of our legacy.
We are excited to invite you into our new home.

海鸥集团历经时光淬砺,46年来发展一枝独秀。
展望未来,集团整装待发,以焕然一新的英文名字营造美满的新“”。
此番华丽转变,公司优良传统不变,文化企业精神亦如初衷。

Beshom

Beshom Holdings Bhd is the new “HOME” of Hai-O’s group of companies, a Public Listed Company on the Main Market of Bursa Malaysia Securities Berhad.
Beshom has assumed the listing status of Hai-O Enterprise Bhd on
29 November 2021.

Welcome to BESHOM.

最佳生活    始于家元
海鸥控股有限公司(Beshom Holdings Bhd),2021年11月29日,
正式延续海鸥企业有限公司在大马股票交易所主板的上市地位。

欢迎光临我们的新“”——BESHOM。

News

Affin upbeat on Hai-O MLM division

Affin upbeat on Hai-O MLM division
Source:
The Star

HAI-O ENTERPRISE BHD

By Affin Investment Back

Buy (upgrade)

Target Price: RM2.98

WE came away positive from our meeting with management on Hai-O's prospects.

Although third quarter 2013 net profit of RM11mil is still far from its hey day of RM15mil to RM20mil in financial year 2009 to 2010, we note that the company's new strategy of focusing on higher margin products (eg foundation garments) developing new operating structure for its multi-level-marketing (MLM) division is bearing fruit.

Hai-O's nine-month financial year (ending April 2013 net profit had rebounded commendably by 31% year-on-year to RM32.2mil and we attribute this to the strong recovery from its MLM division, underpinned by the healthy membership growth and higher volume sales recorded in its bigger ticket items such as foundation garments, water filter and food purifier.

To recap, Hai-O's MLM division had experienced poor sales and membership growth (financial year 2011: +2.3%; financial year 2012: +5.3% vs financial year 2010's +30%) over financial year 2011 to 2012 owing to the imposition of more stringent rules on new membership recruitment under the new Direct Sales Act by the authorities in fourth quarter 2010.

Consequently, the company's net profit plunged 60% year-on-year in financial year 2011 to RM28mil.

We understand that management has since developed a successful operating strategy for its MLM division, and is currently experiencing strong rebound in membership growth.

With a sizeable membership of 140,000 currently, Hai-O is confident of achieving a 15% to 18% growth in membership in financial year 2013 to 2015.

The group opened seven new retail outlets in financial year 2012, bringing to a total of 72 outlets nationwide (four owned, 68 leased).

We note that the group will continue to expand its footprint, targeting to open another three to five outlets in strategic locations by financial year 2014.

Capital expenditure is estimated at RM20,000 to RM30,000 per outlet. Besides, the company will also refurbish and consolidate the unprofitable outlets.