KUALA LUMPUR (Jan 16): Shares of Datasonic Group Bhd touched a four-year high following news that the government has extended its contract to supply 6.1 million raw MyKads and MyKad consumables to the National Registration Department (NRD).

After the noon market break, the counter jumped to RM1.64 before paring some gains. At 3.05pm, Datasonic shares were trading 1 sen higher at RM1.60 apiece, against its last close of RM1.59.

According to Datasonic's bourse filing, the extension was for a one-year period from Jan 1, 2020 to Dec 31, 2020.

Datasonic had in May 2016 announced a 3½-year contract worth RM260.4 million for the supply of 12 million raw MyKads and MyKad consumables to NRD, from July 1, 2016 to Dec 31, 2019.

"Due to much better quality of the new MyKad raw cards and chips, there were much lower replacement of faulty chips and peel-off of MyKad cards.

"As a result, during the contract period of 3½ years, NRD only ordered 5.9 million (49.17%) of the 12 million units of MyKad raw cards with huge savings to the government," it said.

Shares of Datasonic have outperformed since last year. The stock more than tripled in value in 2019, and has added more gains this year. Year to date, the counter has gained 8%.