On Monday, Datasonic Group announced on Bursa Malaysia that the company has accepted a letter of award from the Ministry of Home Affairs for a contract worth RM32.56mil. The announcement said the award (“LoA”) is for the maintenance services for personalisation process at the National Registration Department of Malaysia for a period of two years, commencing from 1 May 2015 to 30 April 2017.

Under the terms of the LoA, the company is required to furnish a performance bond for the amount of RM814,223.40 to the Ministry of Home Affairs, with validity period commencing from May 1, to 30 April 2018.
 
According to an article on The Star, the contract is expected to contribute positively towards the future earnings and net assets per share of Datasonic for the financial year ending March 31, 2016 and the financial years thereafter for the duration of the contract and will not have any effect on the share capital and substantial shareholdings of Datasonic.
 
Datasonic’s share price has shown strong momentum recently, moving up 9.3% since early last week. Trading volume has been on the rise as well, touching 8.5M units traded last Friday, its highest since December 2014. According to Bloomberg, currently 2 out of 3 analysts have a buy call on Datasonic, with a consensus 12-month target price of RM1.66.

Source: Macquarie Research - 31 Mar 2015