KUALA LUMPUR (Sept 27): Shares of Hai-O Enterprise Bhd fell 11.35% this morning after the healthcare multi-level marketing (MLM) company posted a 30% drop in net profit for the first quarter ended July 31.
As at 11.06am, the stock fell 31 sen to RM2.42, with 1.71 million shares done. It was amongst the top losers on the bourse this morning. The counter has fallen some 37% over the past 12 months.
Yesterday, Hai-O said net profit fell 30% to RM7.74 million in the first quarter ended July 31, 2019 (1QFY20) from RM11 million a year ago, on lower contribution from its MLM division.
It said members have continued to cut back spending in view of weak market sentiment while distributors have also slowed down activities since the last financial year.
Earnings per share fell to 2.67 sen per share from 3.78 sen per share, while revenue was down 18% to RM66.06 million from RM80.09 million.
The group said it expects to remain profitable in the next quarter as it continues to strengthen its foundation for longer-term growth and progress.