Datasonic in talks to secure more govt contracts


Datasonic Group Bhd is in talks with the government on securing the renewal or replacement contract of the MyKad.

PETALING JAYA: Datasonic Group Bhd is in talks with the government on securing the renewal or replacement contract of the MyKad.

According to RHB Research, Datasonic is also vying for the foreigner identity card or i-Kad solutions, Digital MyKad, MyKad printing system, National Digital ID or e-KYC, and Electronic Medical Records.

“Any contract win could further boost the order book and sentiment on the stock, ” it said.

Shares in Datasonic closed unchanged at 52 sen each yesterday.

The group was awarded a RM39.75mil contract by the Home Ministry to provide maintenance services for card personalisation centres of the National Registration Department for 24 months.

Under the agreement, Datasonic is required to implement the professional training and education for growing entrepreneurs programme set by the government based on the contract sum with a minimum number of participants of 15 persons, at no cost to the government.

While the contract would improve Datasonic’s order book to RM450mil, RHB said it is “neutral” on the win as the extension of the contract is within its forecast assumption.

“We make no changes to our forecasts and target price of 57 sen based on unchanged 25 times financial year ending March 31,2022 price earnings, ” said RHB.

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