"Datasonic announcement it has secured a RM220 million order from the National Registration Department for 10 million new MyKads brings the totaloutstanding order of such cards to 14 million.

"As the announcement came in within our expectations, we make no major changes to our forecasts at this juncture. This new order for 10 millionMyKads is expected to be delivered over a period of two years from 1 July 2014 to 30 June 2016.

"The total contract value, however, came in marginally above our previous RM180-RM190 million guidance. We gather from management that this wasprimarily due to the inclusion of the provision of consumables as part of the contract," said RHB in its notes.

On a separate note, Datasonic also announced that it has secured a tenure extension of its outstanding order of 4 million MyKads and these 4 millionidentity cards was supposed to have been delivered by 31 Dec 2013.

"Nonetheless, Datasonic had to carry this forward to 2014 due to capacity constraints. With this extension inked, the group has now agreed to deliver the outstanding 4 million MyKad copies by 30 June 2014."

RHB is making no major changes to its forecasts for now, given that the announcement was largely within our expectations as earnings estimates have alreadycaptured the contribution from this new contract.