WiseVest - DMX Technologies as digital infrastructure builder

DMX Technologies is one interesting China play in Asia. Its main services includes helping clients build up digital infrastructure, digital cable TV and digital mobile communications. It counts China's telecommunications giant, China Mobile, China Netcom and China Telecom as its major customers.

Today, the company announced it has clinched 2 more contracts in China from China Construction Bank and Huaxia Bank worth US$2.1 million and US$1.5 million respectively. Though both contracts are smaller contracts, these 2 contracts could add up as a vote of confidence. With the increasing trend of modernization of banking services in China, DMX can look forward to more of such contracts on building digital infrastructure including online security and customer network management for the numerous Chinese banks.

Furthermore, investments in 3G networks, cable and digital TV, mobile communications lines are set to increase in momentum. All these would combine to make DMX a good buy. This stock is currently covered by DBS Vickers which has a one year target price of S$1.00 by Oct 2005, and by Merrill Lynch to have a target price of S$1.30