Datasonic upbeat on potential near-term jobs


This is besides the potential re-tendering of the online renewal of temporary employment passes for foreign workers (ePLKS).

PETALING JAYA: Datasonic Group Bhd is experiencing heightened optimism on potential near-term contracts as the group aims to participate in upcoming tenders for national security-related and digitalisation solutions.

This is besides the potential re-tendering of the online renewal of temporary employment passes for foreign workers (ePLKS).

RHB Research has increased Datasonic’s core business target price-earnings (PE) ratio to 25 times from 20 times.

However, the research house has lowered Datasonic’s earnings forecast for financial years 2020 to 2021 by 13.9% to 8.4% due to potential lower orders for passport-related solutions by 13.9% to 6.2%, given the movement control order and travel restrictions.

MyEG has been given a month extension on ePLKS, which has prompted the market to speculate that the lucrative contract could be up for tender soon.

“Should the government decide to call for tender or request for proposals from other solution providers, we believe there could be a handful of interested bidders including Datasonic. Based on our calculation on existing processing fees of RM125 per renewal, this could potentially generate a revenue stream of RM150mil, assuming a volume of two million per annum at a 40% discounted fee, ” said RHB Research.

Datasonic is believed to be among the frontrunners for the National Integrated Immigration System (NIISe) potential rollout in June. RHB Research said the group is also keen to participate in the upcoming national security, border-related and digitalisation solutions given its core competency in these areas.

The near-term potential news flow on government-related contracts include Foreign Visa System (VLN), One-Stop Centre (OSC), Foreigner Identity Card (i-Kad), Electronic Medical Records (EMR), and the National Digital ID as the government looks to accelerate digitalisation efforts.

RHB Research maintained a “buy” call on Datasonic with a higher target price of RM1.84.

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 1
Cxense type: free
User access status: 3
Join our Telegram channel to get our Evening Alerts and breaking news highlights
   

Next In Business News

Investor caution on Bursa caps rebound momentum
Trading ideas: Atlan, Cypark Resources, CIMB, Ireka, TAFI Industries and Yinson
Study suggests Pfizer COVID-19 vaccine may only partially protect against Omicron
Oil CEOs raise alarm over market's readiness to drop fossil fuels
Oil rises 3%, extending rally as Omicron fears retreat
Omicron sets back airline industry's recovery hopes
GLOBAL MARKETS-Bulls take charge as Omicron concerns ease
Decision on 5G model next month
Citi picks Standard Charterd bank in Malaysia as front runner for Asia retail sales
Analysts upbeat about prospects for 2022

Others Also Read


Vouchers