Companies around the world are turning to Fusionex International (FXI) to make sense of the vast volumes of data generated by machines, mobile devices and social media. The Malaysia-based software group posted a 36 per cent increase in first-half adjusted cash profits to RM13.6m (£2.4m). But its strong performance failed to impress investors, who sent its shares down 7 per cent on the morning the numbers were unveiled.
Fusionex signed 12 contracts for its user-friendly 'big data' product GIANT, bringing the total to 25. That fuelled a 29 per cent rise in product revenues to RM27m - 86 per cent of the group total. Despite fierce competition from the likes of IBM, management expects further growth because GIANT is "stronger, faster and better" when it comes to data analytics and can tap into a huge variety of data sources.
New GIANT customers included microchip titan Intel and Japanese electronics group Brother Industries. An Asian government is also using the product to help manage immigration and spot security threats. Management plans to release a faster, more intuitive version of GIANT within the next year and expand into new territories such as the Philippines.
Broker Panmure Gordon expects full-year EPS of 52.3 sen, up from 47.4 sen in the year to September 2014.
| FUSIONEX INTERNATIONAL (FXI) | ||||
|---|---|---|---|---|
| ORD PRICE: | 408p | MARKET VALUE: | £175m | |
| TOUCH: | 400-415p | 12-MONTH HIGH: | 493p | LOW: 250p |
| DIVIDEND YIELD: | NIL | PE RATIO: | 40 | |
| NET ASSET VALUE: | 257 sen* | NET CASH: | RM39m | |
| Half-year to 31 Mar | Turnover (RMm) | Pre-tax profit (RMm) | Earnings per share (sen) | Dividend per share (p) |
|---|---|---|---|---|
| 2014 | 25.0 | 8.2 | 17.5 | 2.05 |
| 2015 | 31.6 | 14.3 | 29.4 | 2.10† |
| % change | +26 | +75 | +68 | +2 |
*Includes intangible assets of RM27.7m, or 65 sen a share £1=RM5.61 (Malaysian ringgits) †Paid in March 2015 | ||||
