DMX (15.9 cents) has a market cap of S$186 million and a dividend yield of 1.88%. Chart: BloombergDMX TECHNOLOGIES' recent traded price of 15.9 cents was at a sharp 66% discount to its net asset value of 46.4 cents a share as at end-Sept 2014.The company's business performance appeared to have turned up, based on the 3Q2014 profit increase of 5.2% to US$7.6 million.
Some highlights of its 9M2014 results:
» A major business segment (digital media) has grown while another segment (infocomm technologies, or ICT) declined.
Digital media (US$126.9 million) overtook ICT (US$118.8 million) in 9M2014 sales.
Jismyl Teo, CEO of DMX Technologies. NextInsight file photo.In the digital media segment, DMX has focused on network convergence as well as increased collaboration with cable TV operators in China on their analog-to-digital TV migration.
(For more on DMX business, visit its website)
» Gross margin is decent but has moderated to 21.6% for 9M2014 from 23.5% a year earlier.
» Total operating expense fell 20.1% y-o-y to US$30.5 million. The Group has streamlined its headcount and resources over the last three quarters.
» In its 3Q2014 results announcement, DMX said it was confident of achieving the same level of profitability as FY2013 when it reported US$22.8 million in net profit attributable to shareholders.
This implies a strong profit in 4Q2014 to top up the US$9.2 million (-27.7% y-o-y) achieved in 9M2014.
That would be a repeat of 4Q2013 when it achieved US$10.1 million in net profit attributable to shareholders.
Indeed, a strong 4Q has been experienced in the last few years due to increased demand from clients who typically ramped up orders towards year-end.
If DMX's 2014 profit was at the same level as 2013, the PE of the stock would be about 6.2X.
And if it maintains the 0.3 cent a share final dividend it has paid out in the each of the past three financial years, the yield would be 1.88%.
DMX is expected to report its full-year results in late February.
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