Datasonic's Q2 earnings up 25.7% on better cost management

PETALING JAYA: Datasonic Group Bhd's net profit soared 25.7% to RM20.06 million for the second quarter ended September 30, 2017 against RM15.95 million in the previous corresponding period, underpinned by reduced costs from effective control measures implemented.
Revenue, however, declined 3.8% from RM76.45 million to RM73.56 million, due to lesser supply of smart cards and personalisation services.
The group has proposed to declare an interim dividend of 1 sen per share for the quarter under review.
Datasonic told Bursa Malaysia that the management has continuously negotiated for better competitive pricing for purchases of the required materials and services from suppliers coupled with the recent implementation of cost control initiatives in the administration of the group's operations.
As at September 30, 2017, its order book stood at around RM800 million.
"The prospects for growth are expected to be satisfactory in the financial year ending March 31, 2018, barring any unforeseen circumstances."
Datasonic's first-half net profit dropped 4.2% from RM36.74 million to RM35.18 million, while revenue slipped 12.4% from RM152.53 million to RM133.67 million.
At the noon break, the stock rose 3 sen or 2.6% to RM1.20 on some 437,300 shares done.