mDR

mDR: 4Q12 results non-event. Revenue at $95.2m, flat yoy, as growth in the After Market Services segment (10% of sales, +53% yoy), offset a decline in the Distribution business (90% of sales, -4% yoy). Overall group margins improved marginally from 9% to 10%, mainly due to the change in sales mix. Net profit at $2.3m, -13% yoy, due to lack of a positive tax credit available in the previous yr. Otherwise, net profit would be 10% higher yoy on adjusted 4Q11 net profit of $2.2m. Mgt says the local economy is expected to register modest growth for the yr, which may impact consumer sentiment. Despite the challenges related to curbs on the inflow of foreign labour, the Group remains cautiously optimistic for FY13; intends to broaden its revenue streams from selective overseas investments in new and complementary businesses, Myanmar being amongst the new markets it is currently eyeing. mDR ended the year with net cash of $17.1m, representing 11% of market cap. The co declared first and final dividend of approx $2.1m, relatively unchg yoy. This translates to a DPS of 0.024 cts (1.3% yield) on the current 8,576m shares out. If all outstanding warrants of 4,111m are converted, SPD will be reduced to approx 0.016 cts (0.9% yield). At last close at 1.8 cts, the stock trades at 24x P/E, 3.2x P/B.