[%xLHW%]
Research by RHB
Buy - TP RM0.68

"Sustained High Demand And Earnings; BUY"

MaintainBUYandMYR0.68TP(52%upside),withc.6%FY25F(Mar)yield. Datasonic Group’s 1QFY25 earnings reached its second-highest level ever, meeting expectations, supported by sustained high demand for its passport and identity card-related solutions and sturdy margins. FY25 earnings are expected to trend higher, supported by healthy demand, margin expansion, and contribution from new projects. We believe the stock is undervalued vs its peers and historical valuation, given its healthy yield, strong cash flow generation, and potential upside from new project wins.

Analyst:
Lee Meng Horng 
[%qKuE%]

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

"Sustained High Demand And Earnings; BUY"

MaintainBUYandMYR0.68TP(52%upside),withc.6%FY25F(Mar)yield. Datasonic Group’s 1QFY25 earnings reached its second-highest level ever, meeting expectations, supported by sustained high demand for its passport and identity card-related solutions and sturdy margins. FY25 earnings are expected to trend higher, supported by healthy demand, margin expansion, and contribution from new projects. We believe the stock is undervalued vs its peers and historical valuation, given its healthy yield, strong cash flow generation, and potential upside from new project wins.

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