Is the time ripe for DSONIC 5216 DATASONIC GROUP BERHAD to fly?
Datasonic Group Bhd has been inching up in the past month, gaining 4.7% to close at 45 sen on June 2.
The counter is moving in a positive trend following some good news.
It recently received a contract extension from the Home Ministry for an additional contract value of RM9.94 million.
This is for the comprehensive maintenance services of card personalisation centres at the National Registration Department for six months commencing from June 1 to November 30.
The original contract was valued at RM39.75 million and together with this extension, the total contract value is now worth some RM50 million.
As of March 31, 2023, its order book stood at RM339 million.
This should provide some relief to investors as the counter has been hovering at its 52-week low of 41 sen.
Over the past year, Datasonic has lost some 22.4% in terms of share price.
With the job extension news plus the company’s impressive results, it could be the catalysts needed for the share price to trend higher.
For the financial year ended March 31, 2023, its net profit surged more than sevenfold to RM76.37 million from RM10.24 million a year ago.
The company achieved its highest annual revenue ever at RM344.71 million, up from RM136.43 million previously, driven by higher supply of passports, smart cards and personalisation services.
In 4QFY2023, the security-related integrated ICT solutions provider saw its net profit jump 69.8% to RM22.7 million from RM13.37 million a year ago.
This was on the back of almost doubliing of revenue from RM54.34 million to RM104.9 million.
Datasonic declared a fourth interim dividend of 0.75 sen per share, bringing the total dividend per share for FY2023 to 2 sen, translating into a dividend payout ratio of 74.2%.
Naturally, the company expects the demand for passports to continue to be strong following the reopening of international borders.
Datasonic is also excited about the potential orders of MyKad to rebound to pre-Covid-19 levels.
Similarly RHB Research is positive on the counter as it maintained its buy call with a slightly higher target price of 57 sen from 56 sen previously.
The research house foresees a 35% upside and 5% yield in FY24.
It explained that the resumption of MyKad and consumables supply, coupled with strong demand for passport-related solutions propelled Datasonic’s core earnings to a multi-year high.
RHB Research highlighted that effective supply chain planning and execution allowed the company to ensure sufficient supplies meeting the demand for the national security documents during the quarter.
The research house added that the company’s ability to secure any contract extension on its existing solutions should lift the current share-price overhang.
With the strong push for Datasonic share price in the near term, investors may want to jump in before it is too late.
#DSONIC
https://xifu.my/OpinionsComment.aspx?BID=B01064419P0AB0B0
Singapore Investment
-
-
-
-
-
Portfolio Update3 hours ago
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Clarity2 days ago
-
-
-
-
-
-
-
-
-
Portfolio Returns for May 20254 days ago
-
Net Worth Update May 20254 days ago
-
-
-
The Trump Tariffs4 days ago
-
-
-
UOB share price on the brink5 days ago
-
Finance Investment Movement 576 days ago
-
-
-
-
-
-
Every Senior should know1 week ago
-
-
-
Selling HRnet and Fiverr1 week ago
-
Community1 week ago
-
-
-
-
-
-
GE 2025: Aftermath2 weeks ago
-
-
Apr 2025 Portfolio2 weeks ago
-
-
Portfolio Summary for April 20252 weeks ago
-
-
Portfolio (April 30, 2025)2 weeks ago
-
Portfolio (April 30, 2025)2 weeks ago
-
-
Portfolio -- Apr 20253 weeks ago
-
-
3 Beaten-Down Stocks for your portfolio3 weeks ago
-
-
-
-
-
-
-
-
-
-
-
-
-
FAQ on Quantitative Investing Part 25 weeks ago
-
-
-
-
-
US/China/SG stocks all crashed?1 month ago
-
Investing vs. Speculating1 month ago
-
-
-
-
-
-
-
March 2025 Updates1 month ago
-
-
-
-
-
-
-
-
-
-
-
-
ETF vs Mutual Fund: Which is Better?3 months ago
-
-
-
-
-
-
-
-
Arigato Everyone! A Decade of Blogging!4 months ago
-
Top 10 Highlights of 20244 months ago
-
-
2023 Trading Recap – $11,000 in profit!6 months ago
-
-
Union Square Residences6 months ago
-
-
-
STI ETF7 months ago
-
-
-
Unibet Casino Bonus Codes 20248 months ago
-
-
-
-
-
The Stigma against Early Retirement (FIRE)10 months ago
-
Monthly IBKR Update – June 202410 months ago
-
-
Portfolio Transactions (May 2024)11 months ago
-
-
-
-
-
-
-
Feb 2024 Expenditure1 year ago
-
-
-
-
-
-
-
Monthly Summary of November 20231 year ago
-
Migration of website1 year ago
-
-
-
-
-
-
-
-
-
A New Light2 years ago
-
-
-
-
-
-
2022 Thoughts, Hello 2023!2 years ago
-
Series of Defaults for Maple Finance2 years ago
-
Takeaways from “Sea Change”2 years ago
-
Greed is Coming Back2 years ago
-
-
-
-
-
-
-
-
What is Overemployment2 years ago
-
Terra Hill Condo (former Flynn Park)2 years ago
-
Alibaba VS Tencent: The Battle Royale2 years ago
-
-
-
-
-
-
-
-
-
-
-
-
-