Hong Kong online advertising sales network Pixel, a July entrant to AIM, has posted a small interim profit and is eyeing expansion into neighbouring areas.

Pixel garners advertising deals for web publishers, of which 30 or so currently sit on the books. Chief executive Kevin Huang’s priority is to expand this list ‘fast’ with further penetration into a fragmented China, where a significant contract win in the period was the signing of Sohu.com China’s number one internet portal (‘the Chinese equivalent of Yahoo!’).

Other important first-half wins include Hong Kong’s largest e-commerce site and an exclusive deal for the Asian advertising rights for Bloomberg.com. These join existing publishers such as MSN China and ShanghaiDaily.com. Representing the advertising interests of such websites, Pixel was able to secure fifty new contracts in the period with blue chip advertisers including Credit Suisse, Johnson & Johnson and Japan Airlines.

Results for the six months to June showed profits before tax up 48% to US$460,000 (£246,000) on turnover ahead 38% to US$3.3m.

The company is currently market leader in Hong Kong, Singapore and Malaysia and Huang aims to stimulate organic growth in the latter two and in China and Taiwan by expanding its presence ‘on the ground’. It has US$1.5m to help do this. ‘Our focus is purely on Asia and we have built up very strong relationships with advertisers and publishers in the region,’ states Huang.

The Asian online ad market, although growing rapidly, is still relatively small. Pixel though has caught the wave early and if it can keep its balance it should ride much higher. Tipped in July at 34p by Growth Company Investor, the shares have advanced more than a third and still look worth buying.