Highlight Datasonic bags RM318.75m contract from KDN

by **Cals** Wed 16 Dec 2015, 01:32

Highlight

[size=28]Datasonic bags RM318.75m contract from KDN

By Danial Idraki / theedgemarkets.com | December 15, 2015 : 3:41 PM MYT

KUALA LUMPUR (Dec 15): Datasonic Group Bhd ([You must be registered and logged in to see this image.] Valuation: 0.90, Fundamental: 1.75) has bagged a RM318.75 million contract from the Home Ministry (KDN) to supply Malaysian passport chips for a period of five years or 12.5 million of passport chips.

In a filing with Bursa Malaysia today, Datasonic said its wholly-owned subsidiary Datasonic Technologies Sdn Bhd (DTSB) has accepted the letter of award (LOA) from KDN for the proposed contract commencing from Dec 1, 2016 to Nov 30, 2021.

Under the terms of the LOA, DTSB is required to furnish a performance bond for RM3.19 million to KDN, with validity period commencing from Dec 1, 2016 to Nov 30, 2022.

"The contract is expected to contribute positively towards the future earnings and net assets per share of the group for the financial year ending March 31, 2016 and the financial years thereafter, for the duration of the contract and will not have any effect on the share capital and substantial shareholders’ shareholdings of Datasonic Group," said Datasonic.

As at 3.17pm, Datasonic shares were traded 13 sen or 8.6% higher at RM1.65, with 6.89 million shares exchanging hands, giving it a market capitalisation of RM2.05 billion.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)
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