MyEG / Wong Thean Soon

[winston]

not vested

On-arrival testing to be relaxed– trimming estimates
Lowering TP

The Health Ministry yesterday announced a relaxation of on-arrival testing requirements, a development likely to impact utilisation of MyEG’s breath test services.

We trim our FY22-24E earnings by 10-18% to reflect lower testing volumes.

We now project FY22E earnings to fall by 9% due to lower Healthcare revenue, but to be partially cushioned by the Immigration and Transportation segments.

Maintain BUY while trimming TP to RM1.28, based on unchanged 28x FY23E EPS, (+1SD vs. 5-year average).

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/260080.pdf

[winston]

not vested

MYEG Launches 'Compare by MYEG X NFT Pangolin' initiative to promote use of NFTs

Users of Compare by MYEG, an online platform that allows users to compare and buy car insurance and takaful renewal services, are eligible to receive free commemorative customisable NFTs (Compare Commemorative NFT) minted on Zetrix’s Layer 1 blockchain on the global marketplace NFT Pangolin.

Source: Bernama

https://www.theedgemarkets.com/article/ ... e-use-nfts

[winston]

vested

My EG Services (MYEG MK)
Humming The Blockchain Melody

MYEG’s plan to launch the Zetrix blockchain platform in July to empower the first
digital yuan supernode for China-ASEAN cross-border trades, together with the strong
recovery of the immigration (foreign worker matching) segment and the launch of etesting within the road transport segment, should more than offset the slowdown in
COVID-19-related businesses.

MYEG’s lacklustre -23% ytd performance creates a compelling buying opportunity. Maintain BUY. Target price: RM1.30.

Source: UOBKH

https://research.uobkayhian.com/content ... 5d6c3ca8ba

[winston]

vested

My EG Services – BUY

A major economic/border reopening beneficiary, MYEG’s near-term earnings momentum is anchored on its immigration segment (foreign worker matching services) while the road-transport segment is poised to deliver record earnings when its delayed e-testing module for the driver licence exam takes off (expected in 3Q22).

The group has a masterplan of migrating its existing e-government businesses into its
blockchain platform, besides building a comprehensive Zetrix blockchain network to
facilitate supply chain traceability and financing of China’s trades with the rest of the
world.

Share Price Catalyst

Strong recovery in foreign worker matching services and eventually the foreign worker
permit renewal services.

Robust growth from motorcycle road tax renewal and car e-testing (automated driver
license testing) services.

Listing of its various upstart investments locally and in China.

Zetrix’s further launches of blockchain-related new applications such as the supply chain traceability application.

Source: UOBKH

[winston]

Stock has underperformed YTD; Maintain BUY

The share price has declined by 28% YTD, likely due to potential negative earnings blip as contribution from Covid-19 related services fall off.

Nonetheless, we believe the market is heavily/overly-discounting the upside from the recovery in immigration, as well as new growth avenues from transportation and DeFi.

Monetisation following its earlier investments in digital companies is another catalyst.

Maintain BUY with an unchanged TP of MYR1.28, based on 28x FY23E EPS (+1SD 5-yr avg).

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/272722.pdf

[winston]

vested

MyEG 2Q net profit rises to RM88.64mil on e-service centre resumption

MyEG Services Bhd’s net profit rose to RM88.64 million in the second quarter ended June 30, 2022 (Q2 2022) from RM80.68 million in the same period last year

Revenue improved slightly to RM161.79 million from RM161.73 million previously.

Introducing a Layer 1 blockchain platform, namely Zetrix. Collaborating with its partners to integrate Zetrix with China’s national blockchain platform -- Xing Huo.

Source: The Star

https://www.thestar.com.my/business/bus ... resumption

[winston]

vested

Solid 2Q22 delivery; higherthan-expected margins
Maintain BUY; marginally raise TP

1H22 results exceeded our expectations at 60% of our full-year forecast (in-line with consensus) as the higher revenues from MyEG’s e-services and immigration businesses were enough to offset the impact from declining healthcare revenue.

We raise FY22-24E earnings by 2-12%. We maintain our BUY recommendation with a slightly higher TP of MYR1.30, still pegged to 28x FY23E EPS.

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/277679.pdf

[winston]

vested

2Q22: On A Roll With Record Quarterly Profits

MYEG posted record a high net profit of RM89m (+10% yoy), underpinned by strong
recovery in its road-transport and immigration segments as well as contribution from
the sale of Zetrix tokens.

Zetrix could provide a significant earnings uplift to our 2022- 23 forecasts.

Re-rating catalysts include Zetrix’s ongoing monetisation, car e-Testing’s commercial rollout in 2H22, the planned listings of its various investee companies and capital management.

Maintain BUY. Target price: RM1.30.

Source: UOBKH

https://research.uobkayhian.com/content ... 3c2f9a26e3

[winston]

My EG Services (MYEG MK)
Great Expectations Ahead

Current valuation highly underrates MYEG’s ability to sustain 1H22’s strong earnings
momentum and to greatly enhance its capital management.

Meanwhile, MYEG’s Zetrix blockchain platform will significantly gain momentum with its cross-border supply chain financing and traceability application pilots launching in 2H22.

A valuation gamechanger, MYEG plans to distribute its mature start-up investments to shareholders starting in 2023.

Maintain BUY. Target price: RM1.30.

Source: UOBKH

https://research.uobkayhian.com/content ... 88112ee809

[winston]

vested

My EG Services (MYEG MK)
Further Decrypting Zetrix

A recent in-depth session on MYEG’s blockchain domain (Zetrix) reinforces our view
that MYEG is well-positioned to deliver supercharged earnings growth via monetisation.

Zetrix is on track to launch key applications such as supply chain financing and custom
integration in 2H22.

While we have significantly raised our 2023 earnings forecast after partially taking into account Zetrix’s potential, MYEG could still trounce our estimates.

Maintain BUY and target price of RM1.30.

Source: UOBKH

https://research.uobkayhian.com/content ... 96a654d60b