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

Another muted quarter for Hai-O Enterprise

Another muted quarter for Hai-O Enterprise
Source:
The Edge Financial Daily

Hai-O Enterprise Bhd

(Sept 29, RM1.67) 
Maintain sell at RM1.66 with target price of RM1.27: Hai-O’s topline in the first quarter of FY04/12 declined by 6.9% year-on-year (y-o-y) to RM51 million. 

The respective revenue growth of 6.1% y-o-y and 8.7% y-o-y in the retail and wholesale divisions was not enough to offset the 18.3% y-o-y revenue decline in the MLM division. Accounting for 57% of total revenue, the MLM division continued to be plagued by slow recruitment of new members and weak sales. 

On the bright side, 1QFY04/12 earnings before interest and tax (Ebit) margin expanded by two percentage points to 21.7% (1QFY04/11: 19.7%), attributed to the increased contribution from the sale of higher margin products (including house brands); lower costs of imported goods due to the stronger ringgit and improvement in operational efficiency and productivity. 

Consequently, 1QFY04/12 net profit fell by a smaller 0.9% y-o-y to RM7.7 million (1QFY04/11: RM7.8 million). Results were within both our and consensus expectations.

On a sequential basis, 1QFY04/12 net profit fell sharply by 9.5% on a 12.4% decline in revenue. This was partially attributed to a higher base effect as 4QFY04/11 captured aggressive year-end sales campaign in the MLM division, and sales campaign/year-end stock clearance in the retail division. Coupled with continuing low monthly membership additions, revenue from the MLM division fell by 15.8% quarter on quarter (q-o-q). Revenue from the wholesale and retail divisions fell by a sharper 24.7% q-o-q and 22.9% q-o-q respectively.   

There are no changes to our FY12-14 net earnings forecasts. We remain negative on Hai-O due to slow recovery in the MLM division, which is unlikely to return to the level of robust revenue it reaped in 2009-2010 (more than RM100 million per quarter); a slow takeoff of its MLM operations in Indonesia, and lofty valuations considering its smallish market cap and slow growth outlook. — Affin IB Research, Sept 29