OSK Research upgraded Hai-O Enterprise Bhd (7668)to a "buy" saying it has decent upside potential, but kept its target price at RM5.04.
Hai-O is involved in wholesaling, retailing, multi-level marketing and pharmaceuticals, as well as Chinese medicinal clinics.
OSK believes the firm is on track to achieve a profit forecast of RM72.6 million for the current year ending April 30.
This would be driven mainly by better multi-level marketing sales on the back of a higher membership base and better retail sales.
It expects sales during the Chinese New Year period, which arrived later this year, to be captured in its fourth quarter.
"Management revealed that there are some developments in the technology division and that all is progressing as planned, although there are no further details," it noted in a report yesterday
The shares last closed at RM4.40.
Today closed at RM 4.58. (Up of 18 cent in single day with volumn increase) - Bullish signal
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