DXN's Share Price Inched Higher In Early Trading

KUALA LUMPUR, July 29 (Bernama) -- DXN Holdings Bhd's (DXN) share price was slightly higher in the early morning trading session today after it reported a strong performance for its first quarter ended May 31, 2024 (1Q FY2025).

At 10.40 am, DXN inched up half-a-sen to 64 sen with 5.57 million shares traded. 

In a Bursa Malaysia filing on Friday, DXN said its net profit increased to RM85.56 million in 1Q FY2025  from RM77.60 million in 1Q FY2024, while its revenue rose 12 per cent to RM475.05 million from RM423.98 million previously.

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In a note today, Maybank Investment Bank Bhd expects DXN’s group sales to continue to be driven by its core markets in Latin America and India, but noted that the overall cost pressures may intensify in the near term due to ongoing elevated raw material costs.

“We maintain our earnings estimates and keep a 'buy' call on DXN’s shares with a target price (TP) of RM0.86 per share, pending DXN’s results briefing," it said. 

Meanwhile, RHB Investment Bank Bhd (RHB IB) said DXN’s 1Q FY2025 results are broadly within expectations as its core net profit of RM82 million accounted for 22 per cent of the consensus’ full-year forecast.

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The investment bank also expects DXN to see better quarters ahead, supported by its relentless growth momentum in major markets.

“Its core strategies to recruit new members and enhance overall member productivity will continue to revolve around member engagements, complemented by launches of new quality products," it said. 

At the same time, RHB IB said it is also looking forward to the outcome of DXN’s entry into the Brazilian market and expects to see significant earnings contributions from the venture within three to four years. 

“We make no changes to our earnings forecasts and maintained a 'buy' call with a TP of RM0.93 per share," it said.

-- BERNAMA