The Daily Pulse of Bursa Malaysia

Is Datasonic ready to propel higher?

zaclim
Publish date: Mon, 10 Jun 2024, 07:49 AM
zaclim
0 113
Daily Pulse is a blog that provides daily stock updates and insights on the Bursa Malaysia.

Follow us in telegram for more daily discussion
https://t.me/xifuinvcommunity

Datasonic Group Bhd has been on a bullish streak, closing at a new 3-year high of 56 sen on June 7.

The counter is likely to see further upside given the the positive momentum.

Follow-through buying may lift prices towards immediate resistance levels at 60 sen and 63 sen.

In the past year alone, Datasonic has gained 22.8% to close at 56 sen.

It was trading at a low of 42 sen in January this year.

Recently, the optimism on the integrated information and communications technology (ICT) solutions provider rose mainly on its contract extensions from the Home Ministry worth a total of RM181.66 million.

However, all the extensions are for six months only, from June 1 to Nov 30 this year.

These follow the letter of award and four contract extensions, also for 6 months, from the Ministry of Home Affairs (MOHA) worth a total of RM175 million.

This time, Datasonic said it received an extension for the supply of MyKad, MyTentera and MyPOCA raw cards and consumables to the National Registration Department (JPN) for an additional ceiling contract value of RM27.81 million.

Datasonic also received a third extension to the contract for the comprehensive maintenance services of card personalisation centres at JPN, worth RM11.57 million.

In addition, it was also given contract extensions for the supply of Malaysian passport chips, worth an additional RM59.77 million; Malaysian passport documents worth RM29.81 million, and polycarbonate biodata pages worth RM52.70 million, to the Immigration Department.

The group has been the sole provider of passport solutions to the Immigration Department since 2016.

In May, the counter touched a two-week low of 47 sen despite reporting its best-ever quarterly and annual earnings.

The much improved performance was due to higher demand for passports, identity cards, and financial card personalisation services.

Datasonic’s net profit for the fourth quarter ended March 31, 2024 (4QFY2024) jumped 70% year-on-year (y-o-y) to an all-time high of RM38.6 million.

This was on the back of quarterly revenue of RM115.74 million, lifting full-year net profit by 20.08% to a record high of RM92.26 million.

Analysts expect the group’s earnings growth to continue in the coming financial years, given the sustained healthy demand for its products and margin expansion.

Perhaps this time, the counter will see a sustained run in its share price given its track record in securing contract extensions and better financial performance.

Related Stocks
More articles on The Daily Pulse of Bursa Malaysia
Sports Toto’s big gamble pays off

Created by zaclim | Jun 21, 2024

Sports Toto Bhd has been quietly inching up to reach a high of RM1.68. With heightened interest in the counter, is there opportunity to trend higher?

What is driving Gadang to its new high?

Created by zaclim | Jun 19, 2024

Gadang Holdings Bhd appears to be heading new territory as its share price moved towards its new 52-week high of 52 sen recently. Can the upward momentum be sustained?

Censof hits 30-month high on heightened investors’ interest. Can it sustain?

Created by zaclim | Jun 13, 2024

Censof Holdings Bhd is on a good run, gaining close to 20% in just over two days. Has investors missed the boat or can they still make some trading profits from this counter?

Edelteq offers interesting upside to investors

Created by zaclim | Jun 12, 2024

Edelteq Holdings Bhd has seen a surge in its share price to reach a 10-month high recently. Can the upswing continue

Pantech to see continued upward momentum despite poorer results

Created by zaclim | Jun 11, 2024

Pantech has made good ground in terms of share price, rising close to 50% in the past year. While it posted disappointing results recently, it will likely ride on the expected elevated crude oil price

Evergreen poised to turn the corner, boosted by pick up in demand from the US and EU

Created by zaclim | Jun 10, 2024

Evergreen Fibreboard Bhd has shown signs of a bullish momentum and could see it move closer to its year high of 38 sen. Question is when it can move beyond that level.

Inta Bina rallies to record high share price. Can it go further?

Created by zaclim | Jun 10, 2024

Inta Bina has seen surge in share price recently after bagging RM112 million job. The size of the job may not be so huge but collectively with 5 new jobs this year alone, the future looks promising

ITMAX saw new highs but signs point to more bullish movements

Created by zaclim | Jun 06, 2024

ITMAX System Bhd shareholders gota treat after the counter touched its new high of RM2.47. Is it still time to enter?

Prostasco on the rise with better prospects

Created by zaclim | Jun 04, 2024

Protasco Bhd has appreciated more than 50% in over a year despite its loss making position. Hopes are high that it will continue to be profitable after returning to the black in FY23.

Discussions
1 person likes this. Showing 1 of 1 comments

brayok

If the co. has potential to move higher, why then the directors were disposing their shareholdings in the co? And in significant amounts.

1 week ago

Post a Comment