KUALA LUMPUR, Nov 26 (Bernama) -- Chinese herbs and medicine seller, Hai-O Bhd said the recent selldown of its shares was likely due to short-term sentiment caused by market forces.
"Basically, the fundamentals of the company remain strong, while revenue and profit growth remain intact," its group managing director Tan Kai Hee said at a media briefing on the company's share movement, here Thursday.
Its share price which had stood at a peak of RM7.99 on November 11 had since declined 23 per cent and was at RM6.15 on Wednesday.
Tan attributed the short term market sentiment to weak financial performance of some multi-level marketing companies that had just announced their results.
However, he said the weaker share price provided an opportunity for investors to buy.
"We are looking for long-term investors, not short-term players who are looking for speculative gains. We will continue to maintain our 50 per cent dividend policy," he said.
Hai-O, due to announce its second quarter result next month is confident of continued commendable results.
It recorded a pre-tax profit of RM26.287 million on the back of RM148.572 million in revenue for the first quarter financial period ended July 31.
The company, which has launched a membership drive in Indonesia for its multi level marketing, is confident of breaking even in two years in the latest overseas venture, Tan said.
He said the company aimed to recruit 5,000 to 10,000 new members for its multi-level marketing (MLM) plan in the current financial year.
"We will set up more branches in potential provinces like Bandung to accelerate membership growth," he said.
For its Indonesian venture, the analyst said the company has invested RM1.7 million, a minimal amount for the potential significant growth in the market.