This article first appeared in The Edge Financial Daily, on September 23, 2015.
Datasonic Group Bhd (-ve)
DATASONIC (Fundamental: 1.75/3, Valuation: 0.5/3) triggered our momentum alert last Friday, rising some 5.9% to close at RM1.44.
Datasonic is the only ICT vendor involved in 3 major smart card programs in Malaysia: Government Multi Purpose Cards (including MyKad and MyPR), Payment Multi Purpose Cards (bankcard or ATM chip-based smart card), and Europay, MasterCard and Visa Cards migration.
The company’s earnings are derived from 2 main sources — the supply of MyKads to the National Registration Department (NRD) and polycarbonate datapage of passports to the Immigration Department.
For 1QFYMar2016, revenue declined 24% to RM54.4 million from RM71.6 million in the 3-month period ending June 2014 — having changed its financial year end from December to March. Net profit halved to RM12.4 million.
In March, it bagged a RM32.6 million contract for the maintenance services for personalisation process at the NRD for 2 years, from May 1, 2015 to April 30, 2017.