KUALA LUMPUR (Aug 30): Datasonic Group Bhd returned to the black with a net profit of RM12.03 million in the first quarter ended June 30, 2022 (1QFY23), from a net loss of RM5.65 million a year before.

In a Bursa Malaysia filing, the security-based information and communications technology (ICT) solutions provider said it saw more passport applications and renewals after international borders reopened on April 1 this year.

It also experienced a surge of first-time applications and replacement of MyKad documents.

As a result, it posted earnings per share of 0.42 sen against losses per share of 0.2 sen.

Quarterly revenue jumped near four-fold to RM64.08 million from RM17.39 million in 1QFY22, of which RM55.8 million was derived from the supply of smart cards, passports and personalisation services — which was higher than the total of RM11.29 million earned in the corresponding quarter of the preceding financial year — resulting from more demand from customers of the said materials and services.

It paid a first interim single-tier dividend of 0.25 sen per share. The entitlement and payment dates will be announced later.

Compared with the immediate preceding quarter in 4QFY22, its net profit fell 9.99% from RM13.37 million, despite revenue being 17.93% higher from RM54.34 million.

Moving forward, Datasonic said challenging business conditions are expected to persist in the new financial year 2023 (FY23) on the back of supply chain disruptions, elevated levels of inflation, rising cost of raw materials and labour shortages.

Nevertheless, Datasonic group managing director cum chief executive officer Wan Zalizan Wan Jusoh foresees orders for passport and MyKad bouncing back firmly, comparable to pre-Covid-19 levels on the back of the reopening international borders and economic recovery.

“At the same time, we continue to pursue various new programmes and initiatives, particularly in the areas of digitalisation and payment support services, as part of our efforts to diversify our revenue stream. With the worst behind us, we continue to forge ahead towards the bright prospects of Datasonic and look forward to a much better financial performance for FY23 barring any unforeseen circumstances,” he added.

Datasonic’s order book stands at approximately RM396.2 million as of June 30, 2022.

Shares in Datasonic finished 1.5 sen or 2.94% higher at 52.5 sen on Tuesday (Aug 30), giving the group a market capitalisation of RM1.56 billion.