KUALA LUMPUR: Datasonic Group Bhd can expect more contract flows as it is among front-runners for the National Integrated Immigration System (NIISe), RHB Research said.
The lucrative national security, border-related and digitalisation solutions could be rolled out this month, RHB Research added.
Datasonic recently bagged a RM7.3 million contract from the Home Affairs Ministry for an additional scope of spare parts replacements at nationwide card personalisation centres.
This was an addition to the existing RM28..8 million contract for maintenance services of 56 card personalisation centres at the National Registration Department in June 2019.
Datasonic's order book stood at RM611 million as at December 31, 2019, which It said would have a positive impact on revenue generation in future operations.
RHB Research said Datasonic's financial year 2021 to 2020 earnings could potentially rise by up to 2.5 per cent, propelled by higher contributions from its maintenance contract.
The firm maintained its "buy" call on Datasonic at RM1.35, raising its target price (TP) to RM1.86 from RM1.21.
"Key downside risks include contract discontinuation and order fluctuations. Failure in contract bids may see the TP adjusted to RM 1.14," it added.
Datasonic is one of the country's largest security-based ICT solutions providers.
It is best known for its provision and personalisation for highly secure NID cards and supply of e-passport chips, polycarbonate data pages, passport booklets, and related NID and passport printing systems to the government.