Hai-O hits five-week low

Hai-O hits five-week low
Tags: Hai-O

Written by Joseph Chin
Friday, 20 November 2009 15:44

KUALA LUMPUR: Shares of Hai-O Enterprise extended their losses in late afternoon trade on Friday, Nov 20, falling to a five-week low of RM6.93.

At 3.23pm, the shares were down 27 sen to RM6.93, the lowest since Oct 15.

On Thursday, the shares fell 46 sen, the biggest one-day loss in recent weeks, as investors started taking profit after the run-up in the share price.

Hai-O is a manufacturer and wholesaler of traditional herbal and pharmaceutical products.

In late October, a local research house increased the indicative fair value for Hai-O to RM8.80 from RM6.80, based on higher price-to-earnings ratio (PER) of nine times CY2010 earnings per share (versus eight times CY2010 earnings per share previously).

This is a 38% discount to the research house's target PER for the consumer sector of 14.5 times due to its smaller market capitalisation as well as low liquidity.

The higher PER target, the research house said, was to reflect increased investor participation in mid-cap stocks,a lower risk premium and improved market sentiment.

http://www.theedgemalaysia.com/business-news/154142-hai-o-hits-5-week-low.html