Affin Keeps Hai-O At Sell; Target MYR2.71

STOCK CALL: Affin Investment keeps Hai-O Enterprise (7668.KU) at Sell, keeps target at MYR2.71. Analyst Shakira Hatta says remains concerned at near-term earnings prospects despite plans by firm to expand into property development, expanding energy division to broaden earnings base. "We remain concerned over the sharp revenue declines in the MLM (multi-level marketing) division." MLM (which contributes about 80% of total revenue) hit by new membership recruitment guidelines; 1QFY11 MLM revenue down 51.4% on quarter, down 73% on year. "The upcoming 2QFY11 results (to be released in December) will continue to exhibit impact from the new guidelines, although management believes the earnings decline has bottomed out." Stock last down 0.3% at MYR3.06