Datasonic sees Q3 profit doubling after Bursa query

PETALING JAYA: Datasonic Group Bhd, which was queried by Bursa Malaysia yesterday over a sharp fall in its share price, saw its net profit for the third quarter ended Dec 31, 2019 double to RM20.18 million from RM9 million a year ago, thanks to higher revenue from the supply of smart cards, passports and provision of personalisation services, as well as lower finance costs.

Revenue jumped 32.1% to RM74.97 million from RM56.76 million. Of this, RM57.7 million or 77% of the group’s revenue was derived from the supply of smart cards, passports and provision of personalisation services.

The group has declared a third interim dividend of 1 sen per share, amounting to RM13.5 million.

For the nine-month period, Datasonic’s net profit surged 92.9% to RM48.05 million from RM24.91 million in the same period a year ago, while revenue grew 20.5% to RM196.29 million versus RM162.84 million previously.

On prospects, the group said the management continuously negotiates for better competitive pricing for purchases of the required materials and services from suppliers coupled with the prevalent cost control initiatives.

“The order book as at Dec 31, 2019 was in the vicinity of RM611 million which would have a positive impact on revenue generation in future operations,“ it said.

Despite the economic challenges and uncertainties prevailing in the business environment with potential impact globally, the board is cautiously optimistic that the results for the financial year ending March 31, 2020 to be better than that achieved in the previous financial year.

At 3pm, Datasonic’s share price was trading 17 sen higher at RM1.21 with 101.86 million shares changing hands, the third most actively trade stock on Bursa.