Sunday, September 9, 2012

Datasonic - Fair Value

Fair Value: 2.18 (Kenanga), 2.29 (OSK)
It is banking for high technology for growth.
It is the only information and communications technology vendor involved in three major smart card programmes in Malaysia : MyKad, the ATM chip based smart card and Europay MasterCard and Visa chip based credit card.
It is an ICT solutions provider whose core business is the provision of smart card personalization and customization of software and hardware solutions.
It had bagged contracts worth rm532 million as at June 30, 2012 from local government agencies. A key contributor to contract value was the card segment, which aaccounted for 67%. The other contracts in the order book involve the provision of products and services and the sale of consumables.
It plans to tap the healthcare sector with its total hospital information system, the education sector and regional markets with its multi application national ID and border control systems.
There are risks in in the company because it operates in a highly fragmented market and is overly dependent on the government. 50% to 80% of its revenue was derived from the government sector.
Datasonic has a robust balance sheet with low gearing and its future operating cash flows are expected to be strong as well.
Going forward, Datasonic intends to tap into the healthcare sector with its total hospital information system; education sector with the multi-purpose student ID card system and regional markets with its multi-application national ID and border control systems.

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Please note that all data given are merely blogger's opinion. It is strongly recommended that you do your own analysis and research before investing.