CEO Morning Brief

Datasonic's 2Q Profit Drops 27% as Revenue Dips After Surge for Passport Renewal, Pays 0.6 Sen Dividend

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Publish date: Fri, 01 Dec 2023, 08:50 AM
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TheEdge CEO Morning Brief

KUALA LUMPUR (Nov 30): Datasonic Group Bhd recorded a net profit of RM18.15 million for its second quarter ended Sept 30, 2023 (2QFY2024), down 27.13% from the RM24.91 million it made in the corresponding quarter last year — when earnings leaped over 20 times amid a surge in applications for passports and MyKad including first-time applications and renewals following the reopening of international borders on April 1, 2022.

Earnings per share for 2QFY2024 dropped to 0.64 sen from 0.87 sen as revenue fell 6.81% to RM87.25 million from RM93.63 million on lower demand for smart cards, passport and personalisation services, according to the bourse filing of the security-based ICT solutions providers.

The group declared a second interim dividend of 0.6 sen per share for FY2024 payable on Dec 29, bringing total dividends declared year-to-date to 1.2 sen, compared with 0.75 sen in the corresponding period in FY2023.

Still, Datasonic's net profit for the first six months ended Sept 30, 2023 (6MFY2024) saw a marginal increment to RM37.19 million from RM36.94 million in 6MFY2024 as revenue rose 9.1% to RM172.07 million from RM157.71 million. Earnings per share for the cumulative period rose to 1.32 sen from 1.29 sen.

Of the total 6MFY2024 revenue, RM151.45 million came from the supply of smart cards, passport and personalisation services, up from RM139.87 million earned in the preceding financial period due to higher demand. "The current financial period reported a higher profit from operations compared with the profit in the preceding financial period," Datasonic added.

The group plans to continue to focus on the execution of its strategic plans with a prudent approach to further expand its business. “The healthy demand for passports is sustaining, which we expect will continue, especially in the subsequent quarters of FY2024. Our utmost priority remains on ensuring a continuous, timely and high-quality delivery to our clients, aimed at meeting the elevated public demand,” it said.

It also said its i-Kad (foreign worker cards) has gained favourable traction since the deployment commenced in August this year, which it said opens up opportunities for the group into other solutions and services as part of its business diversification plan.

Datasonic’s shares closed half a sen or 1.16% higher at 43.5 sen on Thursday, valuing the company at RM1.29 billion.

Read also:
Datasonic's 2Q net profit jumps as Malaysians rush to renew passport, issue MyKad

Source: TheEdge - 1 Dec 2023

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