KUALA LUMPUR (June 25): Shares of Hai-O Enterprise rose in early trade after AffinHwang Capital Research upgraded the stock to “Hold” at RM2.23 with a higher target price of RM2.02 (from RM1.80) and said Hai-O’s FY15 results were in line with house and consensus expectations.

At 9.03am, Hai-O rose 8 sen to RM2.31 with 13,000 shares done.

In a note today, the research house said Hai-O’s FY15 revenue and core earnings contracted 5% and 26% respectively due to weaker sales and softer margins.

“Upgrade to Hold with a higher target price of RM2.02 (from RM1.80) as valuation turns attractive.

“Estimated dividend yields of about 5% over the next 3 years should provide a buffer to share price,” it said.