RHB Research upgrades Datasonic, raises fair value to RM2.50

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KUALA LUMPUR (June 26): RHB Research has upgraded Datasonic Group Bhd to Buy (from Neutral) at RM2.02 with a higher fair value (FV) of RM2.50 (from RM2.04) after Datasonic yesterday proposed to acquire 30% of Fuelsubs House SB (FHSB) for R10 million, subject to the latter securing the mandate to manage the national fuel subsidy program.

In a note Thursday, the research house said this confirmed previous media speculation and came as a positive surprise to the research house.

“Upgrade to Buy (from Neutral), FV raised to RM2.50 (from RM2.04) as we factor in potential earnings contributions from this contract come FY16F,” it said.