[%vYRc%]
Research by RHB
Buy – TP RM0.68

“Assessing The 10-Year Passport Impact; Keep BUY"

Keep BUY and MYR0.68 TP, 30% upside and c.5% FY25F (Mar) yield. Last Friday, the Home Affairs Ministry alluded to the availability of an optional 10- year validity passport. Based on our scenario analysis, revenue and profitability is expected to surge in the next 4-5 years given the potential higher ASP, but we anticipate volume to decline by more than half from 2030 before normalising in 2035. The change in policy may have raised the barrier of entry and/or could result in a longer-term contract period.

Analyst:
Lee Meng Horng 
[%UFbn%]

$KLSE-DSONIC
Research by RHB
Buy – TP RM0.68

“Assessing The 10-Year Passport Impact; Keep BUY"

Keep BUY and MYR0.68 TP, 30% upside and c.5% FY25F (Mar) yield. Last Friday, the Home Affairs Ministry alluded to the availability of an optional 10- year validity passport. Based on our scenario analysis, revenue and profitability is expected to surge in the next 4-5 years given the potential higher ASP, but we anticipate volume to decline by more than half from 2030 before normalising in 2035. The change in policy may have raised the barrier of entry and/or could result in a longer-term contract period.

Analyst:
Lee Meng Horng 
lee.meng.horng@rhbgroup.com