Hong Kong-based online advertising expert Pixel Interactive Media, already growing fast in China, Malaysia and Singapore, is now making an incursion into Vietnam via a joint venture. The company is joining forces with locally-based 5th Media JSC, a private Vietnamese mobile and digital media ‘solutions’ group, and the partnership will open initial offices in Hanoi and Ho Chi Minh City under the command of general manager Robin Hii.

Pixel, which recently reported first-half results to June showing pre-tax profits up 92% to US$1.2m from sales 86% ahead at US$9.1m, intends to funds its half of the project with existing cash reserves. Net cash increased 14% to US$5.5m during the half and the second period has begun well, boosted by the Beijing Olympics.

Pixel's chief executive Kevin Huang says he thinks the company has the opportunity to ‘shape the future of the Vietnamese advertising market’. He explains ‘the internet is the fastest growing medium in Vietnam and coupled with the strength of the Vietnamese economy, I believe that the country will offer us unparalleled growth opportunities.'

Finance director Belinda Montes adds that ‘the Vietnamese market is not as developed as others in the region and now it is opening up. We think it is better to be in early.’ She confirms the company intends a similar foray into the Philippines ‘next year’.

Pixel shares have rallied from recent lows of 16p to 22.25p, but still trade at a significant discount to the 39.25p of a year ago. Slated by house broker Canaccord to reach $3.3m of profit for the full year, the company is riding on the back of a fast-expanding market and deserves a re-rating. Speculative buy.