STOCKS NEWS MALAYSIA-Kenanga initiates Hai-O with 'outperform'

Wed Jan 16, 2013 9:24pm EST

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Kenanga Research initiated coverage of multi-level marketing firm Hai-O Enterprise Berhad with an "outperform" call, citing the company's strong business prospects.

"We like Hai-O for its strong multi-level marketing business growth that will see it making a substantial growth in earnings," Kenanga said in a research note on Thursday.

Hai-O has a decent dividend yield and has been constantly liquid with a net cash position while its capital expenditure and advertising costs are low, it added.

Kenanga set a target price of 2.90 ringgit per share for the stock.

At 1013 (0213 GMT) Hai-O was down 0.01 ringgit at 2.48 ringgit while the benchmark composite index was down 0.02 points at 1682.62.

(Reporting by Siva Sithraputhran in Kuala Lumpur, Editing by Anupama Dwivedi;; Reuters Messaging: