DXN - Record Earnings, Quarterly Dividend Increases Further

DXN just released its 4QFY24 results.

Earnings:

Record quarterly earnings at RM79m (EPS 1.59sen)

-        Record full-year earnings at RM310.994m (EPS 6.28sen)

-        PE 10x based on closing price of 62sen

Dividend:

Quarterly dividend increases further to 1sen/quarter (FY24: 3.6sen or 5.8% yield)

-        Dividend policy: At least 50% of PATAMI

Net cash:

-        RM476.7m or 9.6sen/share (15.5% of market cap)

Cashflow:

-        Positive cashflow after capex, decent dividend payout, and paring down of debts (FY23, FY24)

ROE:

-        27.8% (FY24)

 

Growth:

-        Revenue has been growing at a double-digit rate since its privatisation in 2011.

-    The group is expanding its presence into Brazil. This market presents a significant opportunity with its large population of 217 million and its proximity to its existing Latin American presence.

 

More than 50% of DXN's sales are generated from Latin America. How did DXN, a Malaysian company, penetrate the Latin America market despite the vastly differences in language and culture?

Its “ONE WORLD ONE MARKET” concept differentiates itself from other MLM companies.

Unlike traditional geographical expansion, DXN doesn't directly set up branches in new markets and begin operations. Instead, they leverage their "ONE WORLD ONE MARKET" concept. Members introduce DXN products to new countries, sponsoring members from those regions. Members can operate in any country, allowing DXN to establish a network without significant upfront investment.

DXN only establishes a physical branch at an area after achieving a member base of 500 active members and hitting a minimum sales amount. This minimises risk and ensures efficient resource allocation. Notably, DXN boasts a perfect record of no branch closures since its inception.

The success story began with members from Malaysia, Indonesia, and the Philippines venturing into the US market. Spanish-speaking members in the US then brought DXN to Mexico in 2005. From there, it spread to Peru in 2010 and Bolivia in 2012. Currently, they're expanding into the vast Brazilian market. DXN's member-driven approach has resulted in a presence in 48 countries around the world.

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Chinese schools in Malaysia attracting more children of other races, amid allegations of sowing disunity

Education is the most powerful weapon we can use to change the world ~ Nelson Mandela

The future of a country doesn't depend on its wealth but on its education ~ Debasish Mridha

This is an article on Chinese schools in Malaysia published by Channel News Asia yesterday.

Some of the key points:

“(So many people in the) world speak Chinese and many companies nowadays require Mandarin-speaking candidates,” she said, adding that Chinese schools also place an emphasis on students’ discipline.

It is part of a wider trend across Malaysia. Earlier in March, it was widely reported that all 20 primary one students enrolled at the Si Chin Chinese School located in Bahau, Negeri Sembilan were Malays. 

about 20 per cent of students in all Chinese primary schools across the country in 2024 are non-Chinese, up from about 12 per cent in 2010.

The Chairman of the Parent Action Group for Education Malaysia (PAGE) Noor Azimah Abdul Rahim told CNA there was a perception among parents that teachers in Chinese schools were very dedicated to their duties.

The 38-year-old said that the school has facilities such as digital blackboards and large televisions as well as a hall where they can hold their own events, adding that students can choose from a wide range of activities, including a robotics class among others. 

Read the full article: Chinese schools in Malaysia attracting more children of other races, amid allegations of sowing disunity

Crescendo - Potential Beneficiary of Data Center, JB-Singapore RTS (Update)

Wrote about Crescendo - Potential Beneficiary of Data Center, JB-Singapore RTS on 12 December 2023 when the share price was RM1.98. Share price closed at a recent high of RM3.03 last Friday.

https://bursastocktalk.blogspot.com/2023/12/cresndo-potential-beneficiary-of-data.html

Highlighted the potential special dividend on 14 February 2024. The company declared a special dividend of 13sen on 27 March 2024. Share price gapped up and closed at a recent high of RM3.03 the next day.
https://www.facebook.com/photo?fbid=893958872733568&set=a.391566119639515

Another positive development was shared in the 4QFY24 results announcement.

3QFY24 results note:
"The Group also plans to launch 1,200 units of serviced apartments which are located within the vicinity of the RTS terminal at Bukit Chagar with a total GDV of approximately RM900 million in FY2025."

4QFY24 results note:
The Group also plans to launch 1,200 units of serviced apartments which are located within the vicinity of the RTS terminal at Bukit Chagar with a total GDV of approximately RM1 billion in second half of FY2025.
The estimated GDV for the serviced apartments near RTS terminal has been revised upwards from about RM900m 3 months ago to RM1b.

According to analyst, the selling price psf in JB has surged to at least RM1600. (“新山新推出的项目，可以看到售价走高到至少每平方尺1600令吉，超越大部分吉隆坡和槟城地区。”Translation: "New projects launched in Johor Bahru are seeing selling prices climb to at least RM1600 per square foot, surpassing most areas in Kuala Lumpur and Penang")
https://www.klsescreener.com/v2/news/view/1298399

Will we see higher projected GDV for the project when Crescendo launches it later this year?

Note: The land acquisition has yet to be completed and the conditional period for the land acquisition has been extended to 11 May, 2024.

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