Technical | Fundamental Analysis Discussion Stocks Listed In Bursa

Sunday, May 4, 2014


Dsonic: It is on the verge of securing yet another Government contract as it waits for the nod to proceed with the programme of allocating petrol subsidies based on the MyKad, said a source.


Under the scheme, each MyKad holder will be assigned a certain quota of subsidised petrol each month. The use of the MyKad is to ensure subsidies are targetted to Malaysians and prevent foreigners from benefiting from cheap fuel.


It is believed that the contract is worth between RM250mil and RM300mil and under the scheme, Datasonic will have a stake in a special purpose vehicle overseeing the programme with the Government holding the bulk of the shares.


Fuelling much of its growth has been the steady stream of contracts it has managed to get with the latest being a RM292.2mil contract from the Home Affairs Ministry in April.


The stock is trading at prospective price-to-earnings (PE) ratio of 23.93 times. It’s current (late April 2014) PE is 27.61 times.


Datasonic has also been in the news as it was reported that the company was among parties eyeing to takeover Percetakan Nasional Malaysia Bhd.


As the result of new contracts and an improving existing businesses, Datasonic has seen the company’s earnings surge in recent times.


In the fourth quarter of last year, earnings of Datasonic leaped significantly to RM22.81mil from RM3.76mil a year ago while revenue rose to RM72.55mil from RM41.96mil in the same quarter of 2012.


For its 2013 financial year, its earnings rose 191% to RM81.89mil from RM28.12mil in FY12 while revenue increased by 45.8% to RM260.74mil from RM178.73mil.

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