HAIO (7668) - Technical and Fundamental Analysis

Technical Analysis


- HAIO shares price achieved at RM5.350 on Dec 12, 2019, and is unable to overcome it since the record high up to now.

- It broke neckline line at RM4.40 on July 6, 2018, with high volume and entered a consolidation phase for 8 months period.

- HAIO shares price continued downward trend until year end of 2018 with bounce back on Dec 26, 2018. A great investment statement: Never ever try to hold a falling knife.

- HAIO shares price entered descending triangle and tried to break-out on May 2, 2019, but it is seen as a fail break-out with a gap down open on May 3, 2019.

- I am agreed that HAIO shares price is quite attractive at this moments after a 50% drop from the top. However, it is worth to keep? We need more time to monitor the shares.

- Resistance R2: RM 2.900

- Resistance R1: RM 2.678

- Support S1: RM 2.470

- Support S2: RM 2.20

Fundamental Analysis


a) Summary

b) Market Prospect Ratio

- HAIO EPS is getting better since Y2015 and recorded higher than Y2014 recently.

- However, there was a significant drop in dividend payout (Payout ratio 29.21%) during Y2017.

- Lower dividend might be caused by higher investment activities in Y2017 (Y2017: RM10.8M vs Y2016: -RM849)

- Continue higher investment activities further deteriorate cash flow in Y2018. (Y2018: -RM8.2M)

c) Profitability Ratio

- Gross Margin and profit margin ratio become better in Y2018 led by higher in revenue, RM462M and it is highest in the past 5 years.

- Furthermore, HAIO able to manage the cost of revenue efficiently to generate higher revenue. (Y2018: RM300M; Y2017: RM271M)

- There is a drop in return on capital employed which is explained by higher total asset in Y2018 mainly contributed by Plant & Machinery (Y2018: RM22.8M; Y2017: RM15.4M).

d) Efficiency Ratio

- There is not significant issues in efficiency ratio.

c) Liquidity Ratio

- HAIO cash and cash equivalent reduced significantly due to higher investment activities in Y2018 & Y2019 and high dividend payout ratio in Y2018 (Y2018: 80.39%).

- This trend posts an uncertainty on the ablity of HAIO to maintain higher dividend payout in the coming years.

d) Solvency Ratio

- HAIO able to meet any short-term obligation requirement.


©2019 by Dividend Investor.