Datasonic Group Berhad
Extension of MyKad Contract
Datasonic Group Berhad (DSONIC) announced on 16th March 2023 that it has received a 3-month contract extension (15th Feb 2023 - 14th May 2023) for the supply of MyKad, MyTentera, MyPOCA raw cards and consumables from the Ministry of Human Affairs (MoHA) for an additional contract value of RM12.5mn.
DSONIC to Remain as MyKad’s Sole Provider for Now
Although the contract extension is only for 3 months, we are confident that DSONIC will continue to deliver for MyKad, MyTentera, and MyPOCA products to the government. According to the management, the process for a new tender will take around 1 year to complete. Meanwhile, it will take another 6 months for the awarded company to do the necessary work, including securing the raw materials. As of now, management indicated that there is no new tender for the MyKad contract.
No Change to Earnings Estimate
No change to our earnings estimates as we have already incorporated a recurring contribution from the MyKad-related segment into our earnings forecast. Based on our forecast, we expect DSONIC to supply approximately 2.5mn – 2.6mn of MyKad’s chips and raw cards, and 2.8mn - 2.9mn of MyKad consumables in FY24.
Reiterate BUY at TP of RM0.80
Maintain BUY on DSONIC at RM0.80 TP, pegged at 30x PER on FY23 EPS of 2.7 sen. We remain sanguine on DSONIC business prospects in 2023 driven by robust demand for passports and MyKad products.
Source: BIMB Securities Research - 21 Mar 2023
Chart | Stock Name | Last | Change | Volume |
---|
Created by kltrader | Aug 12, 2024
Created by kltrader | Aug 12, 2024
Created by kltrader | Aug 09, 2024
Created by kltrader | Aug 09, 2024