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; Siva.Sithraputhran@thomsonreuters.com; Reuters Messaging: Siva.email@example.com