Shares mag14 Feb 2013 07:44
Buy:
Three-dimensional (3D
technology specialist DDD Group
(DDD:AIM) looks set to post
bigger-than-expected 2012 pro ts
when it reports full-year results in April.
Demand for state-of-the-art 3D TVs,
computers and smart phones is rising
fast. The £34 million cap’s clever TriDef
technology converts standard 2D content
for 3D displays. Unit volumes to TV
manufacturers rose 67% last year, while PC
software shipments jumped 172%, more
than o -setting a 58% decline on mobile
handsets, where business levels were
impacted by new product delays. Overall
unit volumes surged by 65%.The installed base of 3D TVs is expected to
grow from 50 million sets sold in 2012 to 125
million this year. Forecasters predict 3D TV
sales will double again in 2014 to 250 million.
This ballooning installed base o ers a
separate growth opportunity through DDD’s
3D content channel, Yabazam!, a smart TV
application that can already point to nearly
250,000 user downloads.
Analysts anticipate 2012 pre-tax pro ts of
$1.9 million (£1.2 million) on sales of $8.6
million (£5.4 million). Taxable income is
expected to more than double again this year
to $4.1 million, yet the consensus estimate
could rise once full details of DDD’s 2012
results are unveiled on 8 April. Using broker
Canaccord’s earnings per share (EPS) 2013estimates of $0.03 (1.9p) the £34 million
cap’s shares trade on a current year price/
earnings (PE) multiple of just 13.6, more than
15% below the software sector average.
Shares says: Great technology should help
DDD fully capitalise on the exciting 3D boom.