KUALA LUMPUR: Datasonic Group Bhd's share on Bursa Malaysia rose in the morning session today on a potential fuel allocation contract.
At 11.57am, the counter was up three sen to RM1.99 with 5.27 million shares transacted.
RHB Research in a research note today said a recent news report highlighted that Datasonic could soon secure a contract to facilitate the allocation of petrol subsidies.
The research house said according to another report, a multi-tier fuel price scheme may potentially be implemented by as soon as September.
"We think this proposal makes sense since the government intends to rationalise its existing subsidy scheme," it added.
RHB Research said fuel subsidies take up more than RM22 billion per annum of the government's RM40 billion annual subsidies.
The research house said, should the plan go ahead, Datasonic stands a good chance of securing a role in it, given that it also manufactures the MyKad.
"This may ensure full integration of the proposed new fuel subsidy scheme with the existing MyKad platform," it added.
The research house has retained a ‘neutral’ call on Datasonic with an unchanged fair value of RM2.04.-- Bernama