Revenue for 3Q2011 up 3.6% to RM64.6m while 9MYTD revenue grow 7.5% to RM214.8m. The increase in revenue was due to the Multi Level Marketing segment revenue growth albeit property and others segment revenue contribution declined.
However, 9MYTD net income surged 47.8% to RM34.4m. 3Q2011 net income up 32.9% to RM12.0m.
Dividend of 3 sen was announced, with the ex-date to be announced at a later date.
Company background:
DXN Holdings Berhad sells, manufactures, and trades health food supplements and products, traditional medicine, vitamin supplements, confectioneries, and other food products. The company operates as a Multi Level Marketing company with their main product produced using Ling Zhi.
At yesterday close of RM1.50, the stock is currently trading at 9.4x Price to Earnings Ratio, which is lower than HAIO’s 13.5x but higher than ZHULIAN’s 7.9x.
There are no analyst covering the stock actively. However, if the market values DXN at 9.0x PER of annualized FY2011 earnings of 19.06 sen, the stock has potential to go up to RM1.72, representing potential upside of 14.7% from the current price of RM1.50.
From technical view, DXN RSI is neutral at 64.31. (as of yesterday close).
This blog is related to observations regarding stocks traded in Malaysia. Disclaimer: The company analysis that appear in this blog is merely facts gathered from different sources and the author's personal view. It is not a buy or sell recommendation. The author do not guarantee the accuracy of the facts being presented. Please consult your investment advisors before acting on any information provided by the analysis above.
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