Datasonic Q2 earnings up 26% to RM20m

It issued the statement in response to an article on Oct 19, 2018 which appeared in TheEdgeMarkets.com that Datasonic, MyEG were implicated in charges against former Deputy Prime Minister Datuk Seri Ahmad Zahid Hamidi.

KUALA LUMPUR: Smart card developer Datasonic Group Bhd's earnings rose 26% to RM20.06mil in the second quarter ended Sept 30, 2017 as it benefited from lower operational costs due to tighter control measures.

It said on Friday its earnings were RM15.95mil a year ago. Profit before tax rose 17% to RM21.65mil from RM18.58mil. Earnings per share were 1.49 sen compared with 1.18 sen. It declared an interim dividend of one sen a share.

Datasonic said its revenue fell 4% to RM73.56mil from RM76.44mil. It said of the amount, RM56.91mil was from the supply of smart cards, consumables pasports and personalisation services.

For the first half, its earnings fell 4% to RM35.18mil from RM36.74mil in the previous corresponding period. Revenue fell 12 sen to RM133.66mil from RM152.52mil due to a decline in the smart card business.

“The management has continuously negotiated for better competitive pricing for purchases of the required materials and services from suppliers coupled with the recent implementation of cost control initiatives in the administration of the group's operations.

“The order book as at Sept 30, 207 was in the vicinity of RM800mil which would have a positive impact on revenue generation in future,” it said.

Datasonic was one of top performers in 2013-2014. It surged from only 13 sen in May 2013 to RM2.23 in April 2014. Since the bonus issue and share split, the share price has since been trading in a tight range.

It was trading at RM1.18 at 3.30pm. At the current price of RM1.18, it is trading at a price-to-earnings ratio of nearly 26 times and FY18 forward PE of 16.8 times.