"According to the management's conservative guidance, the positive earnings impact may be felt in two years," said the research house in a statement on Monday.
With the low investment cost of RM2.8 million compared to its net cash of RM52.1 million at first quarter of 2010 to set up the technology unit, the investment return may be large, OSK Research said.
"We understand that both parties have started their research and development work in Beijing to develop better applications using Hai-O's invention," it said.
The company has teamed up with China's Institute of Engineering Thermophysics (IET) from the Chinese Academy of Sciences to establish a joint laboratory on innovative high intensity heat transfer technology to develop better technology.
OSK Research said the collaboration between the two parties signified that Hai-O's invention was of a certain standard.
It also said that Hai-O Energy had submitted several patent applications which were awaiting approval.
For the fiscal year ended April 30, 2009, Hai-O's revenue increased 16 per cent to RM435.2 million from RM373.8 million in the previous year.
-- BERNAMA
0 comments
Post a Comment