KUALA LUMPUR: Hai-O Enterprise Bhd plans to boost its sales volume by 20% by introducing more quality traditional healthcare products. In the process, it hopes to be among the country’s top three direct-selling companies.
Currently, Hai-O is ranked number five in the Direct Selling Association of Malaysia’s list.
Speaking to reporters after its annual general meeting here yesterday, its managing director Tan Kai Hee said the company’s concentration on its core business was one of the many drivers behind the company’s robust financial performance.
“We practise cost control, concentrate on branding products, quality and we have bigger volume (in sales). Last year’s volume of sales was between RM185 million and RM189 million. This year could easily be 10%-20% in growth,” Tan said.
Hai-O, which was recently transferred from the second board of Bursa Malaysia to the main board, is hoping to enhance its presence in the Chinese and Indonesian markets.
“We should receive approvals (from the authorities) as early as next year and then we can commence our operations,” Tan said, adding that Indonesia and China would be the company’s focus in overseas expansion.
Tan said the company is also keen to venture into Middle East markets by exporting its halal-certified products, as there was a significant growth in the healthcare sector, which was estimated to be around US$74 billion (RM251.6 billion) according to Malaysia External Trade Development Corporation (Matrade).
Meanwhile, in a filing to Bursa Malaysia yesterday, Hai-O stated it had acquired land and buildings measuring 1.33ha from Bata (Malaysia) Sdn Bhd for RM45 million. It said the acquisition provided a platform for Hai-O’s plans for future expansion, especially to cater for higher production capacity, warehousing and business volume.
It added that Bata will lease a portion of its property under a tenancy agreement which could potentially increase Hai-O’s rental income in the future.
For its financial year ended April 30, 2007, Hai-O’s profit after tax surged 100% to RM21.38 million from a net profit of RM10.18 million a year ago. Its revenue rose 29% to RM189.35 million from RM146.8 million.