DSONIC (5216): DATASONIC GROUP BHD confident of winning i-Kad solutions deal from govt
PETALING JAYA: Datasonic Group Bhd remains confident of securing the Foreigner Identity Card or i-Kad solutions contract from the government, owing to the company’s expertise in smart card solutions, according to a RHB Research report.
The research unit noted that the i-Kad solutions can be extended to door access systems, facial recognition, and remittance-related solutions, if the government looks to tighten security by mandating the i-Kad as a compulsory legal document for foreign workers.
Datasonic is also eyeing other major upcoming projects such as the National Digital ID or e-KYC, and Electronic Medical Records or EMR.
RHB Research also pointed out that following the recent expiry of the MyKad contract in December 2020, an extension or new version of the deal might be awarded to Datasonic, given that the outstanding order of 4.1 million MyKads is yet to be delivered due to Covid-19.
“In addition to the consistency in quality, it appears that the government prefers the incumbents to ensure minimal disruption, in terms of continuity of service, judging from recent awards of government-related solutions, ” said the research unit.
Its order book of over RM500mil should continue to provide support, despite its unsuccessful bid for the National Integrated Immigration System (NIIS).
RHB Research maintained its “buy” call on Datasonic, but reduced its target price to 62 sen (from 98 sen previously) following the unsuccessful bid for the NIIS deal.
The research unit said Datasonic should see a strong earnings recovery once the borders are reopened, as passports have expiry dates.
https://www.thestar.com.my/business/business-news/2021/02/03/datasonic-confident-of-winning-i-kad-solutions-deal-from-govt
