Alisa PETALING JAYA: Unconsciously, the price of health and multi-level marketing (MLM) Hai-O Enterprise Bhd
On the basis of growing distributors, there is a strong demand for food and beverage and fashion and beauty products.
Because of its high dividend yield, it is seen as a defensive stock, and Haiou’s share price is more like a high beta or volatility stock.
The company’s share price rose 85.52% year on year corsets wholesale , the market value reached 142 million ringgit. The appreciation also makes its yield (PE) 24.33 times, although the consensus is expected next year, PE will drop to 17.54 times.
The company’s growth is driven by the rise of e-commerce and social media marketing. The net profit for the past decade has been in teens.
For the financial year ended 30 April 2011, operating income increased by 35.74% year-on-year to RM403.93 billion, representing a year-on-year increase of 63.07% to HK $ 5.926 billion. As of July 31, 2017, net profit rose 83.35% year-on-year to Rmb1.787bn, with revenue up 58.32% to RM12,244 million. Taking into account the seasonal weakness of the first quarter sales, this is a surprise.
Higher sales growth is due to its strong sales activity, its recently launched fashion products, pirates and large-scale sales campaign to its 25th anniversary celebration of the strong reaction.
“We are adding 5,000 dealers every month, and social media is actively affecting our sales, and most of our distributors now sell their products on these platforms,” said Tan Keng Kang, managing director of Haiao, His father, Tan Kai Hee, is the current executive chairman and founded the company in 1975.
He added that about 70% of the distributors were women, and most were between the ages of 25 and 40. About 90% of its members are raised.
“Most of our 150,000 members are active, and the members of the entrepreneur have played a significant role in driving our diversification growth, and Tan Qichen said that their creative culture is the key between us and others Of the competitive advantage.
Haio Group Chief Financial Officer Hou Zhenjian added that Haiao conscious decision has begun to gain some, to provide smaller stocks. Previously, we were selling large-scale purchasing goods, such as our filters and corsets.
Those that are durable and repeat orders are slow. Since the provision of food and beverage, food additives and fashion beauty products, we have seen more sales. Most of our members are women, and women and beauty products, one of our best-selling products, “Hew explains.
Tan said consumer sentiment has also picked up, and the improvement of the retail sector is also the case.
Bumiputras dominates Haio’s MLM market, while the Chinese are mainly engaged in retail stores. In more than 500 kinds of products, there are about 200 kinds of MLM market for the Chinese market and other products.
At present, Haiou nearly 80% of the profits from the MLM sector, wholesale accounted for 12%, retail sector accounted for 2%.
Haiao takes dividends of 50% of the after-tax profit at the expense of RM1 billion in cash (including short-term investments). Despite the stock price rise, but the stock price is still about 3.05% dividend.
Since listing in 1996, Haiao has paid about 30 million ringgit of dividends. In addition, the nature of the business means that the company does not need too much capital expenditure.
“Our business is mainly very cash and requires only a small amount of investment.Hew said that the establishment of new retail outlets and the MLM branch or upgrade our factory does not require much capital expenditure. About 2%.
“Slowly and certainly, Haiao is digitizing all of its operating platforms. Due to the efforts of social media and digital marketing, our operating efficiency has increased by 2% in the previous quarter.We have greatly reduced postage and printing costs, Hew said.
Tan said that in order to develop MLM business, the company will launch in the next few months a new way of life and leather products.