Quick take: Datasonic shares continue uptrend, adding 1.27%

KUALA LUMPUR: Shares in Datasonic Group Bhd continued its uptrend in early trade Friday after the company secured contract extension to supply raw MyKards to National Registration Department (NRD).

The counter added 1.27%, or two sen to RM1.60 with over 2.66 million shares done.

Datasonic has secured a one-year extension from the Ministry of Home Affairs to supply 6.1 million MyKad raw cards and MyKad consumables to the NRD, starting from Jan 1 to Dec 31, 2020.

In May 2016, the group announced a three and a half year contract worth RM260.4mil for the supply of 12 million raw MyKads and MyKad consumables to NRD, from July 1, 2016 to Dec 31, 2019.

Datasonic said that due to much better quality of the new MyKad raw cards and chips, there were much lower replacement of faulty chips and peel-off of MyKad cards.

“As a result, during the contract period of 3½ years, NRD only ordered 5.9 million (49.17%) of the 12 million units of MyKad raw cards with huge savings to the government,” it said.

The contract is expected to contribute positively towards the future earnings and net assets per share of Datasonic for the financial year ending March 31, 2020 and the financial year thereafter.

Source: TheStar