KUALA LUMPUR: Datasonic Group Bhd is expected to achieve another record net profit and revenue for the financial year 2024 (FY24), driven by robust demand for passports and MyKads in the market, said BIMB Securities Research.

The firm said Datasonic had received a letter from the Ministry of Home Affairs stating an increase in the ceiling value for the supply of Malaysian passport chips. This brings the total contract ceiling value to RM387.8 million from RM350 million.

The firm said the additional contract ceiling value of RM37.5 million, which is equivalent to about 1.48 million units of passport chips, will ensure continuous and uninterrupted delivery of passports to the public thanks to robust demand for passports amid the reopening of international borders.

"Considering the average monthly passport chip delivery to the government for FY23 was 233,000, we believe this will be sufficient for six month delivery (June-November), before the contract expires on November 30, 2023.

"We remain confident that Datasonic will continue to be the front-runner for the passport contract given its solid track record," it said.

BIMB Securities maintained its earnings estimates on Datasonic due to the contract.

Based on its forecast, the firm expects Datasonic to supply an average of 2.8 million passports for FY24 and FY25.

"We reiterate 'Buy' on Datasonic at 80 sen target price. Given its attractive business outlook, we view the current share price offers attractive value for investors," it added.

https://www.nst.com.my/business/2023/06/920010/datasonic-set-record-earnings-revenue-fy24