DXN HOLDINGS BHD []'s net profit for the first quarter ended May 31, 2010 (1Q11) doubled to RM10.07 million from RM5.01 million a year ago thanks to its multi-level marketing segment that contributed higher profit margins due to cost efficiency.
In a filing to Bursa Malaysia Wednesday, July 28, the group's revenue rose 4.6% to RM67.80 million from RM64.78 million previously while registering earnings per share of 4.43 sen versus 2.16 sen.
For 1Q11, DXN proposed a first interim dividend of 4% less tax and 4% tax exempt dividend per ordinary share of 25 sen each, totaling 8% gross dividend. The group's net asset per share stood at 89.33 sen as at May 31.
On its outlook, the group would remain focus on its existing core business activities and targeting more on overseas markets to enhance group performance. Its core business activities include cultivation, manufacturing and marketing of the health food supplements.
DXN added its directors anticipated that the performance of the group for the financial year ending Feb 28, 2011 to be optimistic.
RECOMENDATION FROM DALI
Why I Like DXN
DXN has proven its critics wrong over a long period of time. The fact that it has managed to transplant its business model in various countries speaks well of its ability to leverage on its scalability. The profitability has mushroomed over the last 2 years, reaping the fruits of their strong execution skills. This counter should be on investors' radar. Considering the maturity and sustainability of its extended business model, the company has easily gone past the manufacturing critical mass and is set to see very strong organic growth ahead. Its a wonder that I do not even see any broker coverage on the stock. Quiet and strong with solid foundations built over time. It has ventured a little into property and has been well received, but that's not the attraction.
Hai-O has went ballistic and seriously, DXN is a lot better than Hai-O, and its barely started to gain support. One can see that they are replicating the Amway business model but with thrust on "Asian heritage, roots and products". Having a grand vision and brilliant ideas is one thing, executing it well is something which gives me a lot of comfort in DXN.
http://malaysiafinance.blogspot.com/2010/01/why-i-like-dxn.html
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