It has regain its footing over the last two years after it suffered a major blow due to a revision to the Direct Selling Act in 2010. The MLM company had to impose stricter rules on the recruitment of members following the amendment of the Act, which took a heavy toll on its earnings.
Its current valuations look attractive provided it can continue to post growth.
It has a 50% dividend policy and has a consistently dishing out dividends above that rate over the past five years.
It has three main businesses – MLM, wholesale and retail. Its bread and butter is the MLM division which contributed 62% to revenue in FY2013 while wholesale and retail trailed behind with a 10% and 16% respectively.
Indeed, the company’s profit and revenue have bounced back since FY2011 attributed this to an obvious change in strategy – product diversification.
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