MyEG / Wong Thean Soon

[winston]

not vested

Expands ZTrade coverage scope
New monetisation stream; maintain BUY

The introduction of verification services for China-issued Certificates of Origin (COOs) effectively expands MYEG’s monetisation avenues for its thriving blockchain segment.

We maintain our FY24-26E earnings forecasts for MYEG and our TP of MYR1.68 (pegged to 20x FY25E PER, at LT Mean).

MYEG is one of our top picks in the M’sia software space. Reiterate BUY.

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/392439.pdf

[winston]

vested

MyEG to gain from Malaysia-China trade growth

Able to expand the monetisation avenues for its blockchain segment with the introduction of verification services for China-issued Certificates of Origin (COOs).

Would complete the two-way coverage for the verification of COOs for MyEG’s ZTrade, an app built in-house on its tier-1 Zetrix blockchain platform, in relation to the trading of goods between Malaysia and China.

For outbound trade to China, we understand that each COO is priced at 200 yuan (RM130), with the option for a bundle plan (five COs at 750 yuan) also available to Malaysian exporters.

Last week, MyEG announced that ZTrade would expand its scope of coverage to now include verification of COOs issued by China’s customs authority.

Maybank IB Research noted Zetrix token sales alone, with average selling price assumption of US$15 per token, is expected to contribute around RM270mil to MyEG’s turnover in 2024.

Maybank IB Research maintained its “buy” recommendation on MyEG, with an unchanged target price of RM1.68 pegged to 20 times forward earnings.

Source: The Star

https://www.thestar.com.my/business/bus ... ade-growth

[winston]

My EG Services (MYEG MK) 2Q24: Above And Beyond; Growing Zetrix Contributions
MYEG delivered another record-high core net profit of RM165m (+6% qoq), reflecting robust Zetrix coins sales and growing services’ revenue.

The strong earnings were also complemented by the e-government segment’s steady momentum.

Positively, cashflow and balance sheet also turned healthier following the meaningful disposal of digital assets.

We remain optimistic on Zetrix’s unfolding potential which will continue to elevate MYEG’s profitability.

Maintain BUY. Target price: RM1.42.

Source: UOBKH

https://research.uobkayhian.com/content ... e=hs_email

[winston]

not vested

Attractive valuations; BUY maintained

MYEG’s decentralised finance (DeFi) segment’s robust growth momentum continued into 2Q24, with the segment accounting for roughly a third of turnover for the second consecutive quarter.

Pending a results briefing today, we maintain our FY24-26E earnings.

Given its attractive valuation (10.8x FY24E PER) and compelling growth outlook, we reiterate our BUY rating with an unchanged TP of MYR1.68 (20x FY25E PER - LT mean).

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/400376.pdf

[winston]

not vested

MYEG in exclusive tie-up with China agency to operate Asean national single window platform

My E.G. Services Bhd (MYEG) has signed a supplementary heads of agreement with China’s East Logistics Link Co Ltd to develop and operate a national single window platform for Asean countries.

East Logistics is a wholly-owned agency of China’s General Administration of Customs.

MYEG said through ZTrade’s live connectivity to GACC’s single window platform, critical trade-related documents could be submitted digitally through the platform, enabling users to enjoy expedited trade processing and clearance.

It added that these include certificates of origin issued by Malaysia’s Ministry of Investment, Trade and Industry and Phytosanitary Certificate and other product certificates issued by the Ministry of Agriculture and Food Security, as well as certificates of origin issued by GACC on the China side.

Source: The Star

https://www.thestar.com.my/business/bus ... w-platform

[winston]

not vested

MY EG, HeiTech Padu to commence collaboration on e-government projects

Recently, HeiTech Padu secured a contract from the Road Transport Department Malaysia to build, supply, deliver, install, configure, integrate, test and commission its hardware, software and digital systems.

The company was also awarded the National Integrated Immigration System (NIIse) project by the Immigration Department.

Source: The Star

https://www.thestar.com.my/business/bus ... t-projects

[winston]

not vested

Aug 20, 2024

2Q Results:-

Revenue: +31%; RM 242m
EPS: +47%; 0.022; RM 165m;
Net Asset: RM 0.34

https://www.bursamalaysia.com/market_in ... id=3474939

[winston]

not vested

Concreting E-government Presence;

Unravelling Zetrix’s Potential

MYEG’s prospects remain rejuvenated with plenty of emerging catalysts such as earnings growth from Zetrix-related services and involvement in multiple Malaysian egovernment projects.

The recent commercial launch of Zetrix cross-border services also provides assurance on stable recurring revenue and healthy cash flows moving forward.

We retain our view that risk-reward is appealing on depressed valuations. Maintain BUY with a target price of RM1.42.

Source: UOBKH

https://39646150.fs1.hubspotusercontent ... (MYEG%20MK)%20241105.pdf?utm_medium=email&_hsenc=p2ANqtz-9Pkw7ggbBiK7dCm4h5a5OiYoCw4JO-r4HUmXWCbDP2FcEhVwLKvlFck4nPax4gbN9cjhcbNw5w6ski-2xc9mhvk7TRow&_hsmi=332351708&utm_content=332351708&utm_source=hs_email

[winston]

vested

Zetrix platform set to spur MyEG’s earnings

Plenty of emerging catalysts such as earnings growth from Zetrix-related services and involvement in multiple Malaysian e-government projects.

After investing over RM1bil to develop its Zetrix blockchain, MyEG launched multiple applications on the platform.

This includes the Ztrade blockchain platform in the China customs, certificate of origin authentication services, smart contract verifiable credentials and blockchain-based digital signing and others.

Earlier in October, MyEG commenced its partnership with Heitech Padu Bhd for Malaysian e-government projects.

To note, HeiTech Padu recently secured a National Integrated Immigration System project worth RM892mil. It also secured another two contracts worth around RM324mil from the Road Transport Department this year.

For its second quarter ended June 30, 2024, MyEG’s net profit rose to RM165.42mil from RM111.56mil in the previous corresponding period, while revenue grew to RM242.28mil from RM184.88mil a year earlier.

Source: The Star

https://www.thestar.com.my/business/bus ... s-earnings

[winston]

vested

ESG 2.0: Maintaining good momentum

Well-contained ESG risks; maintain BUY

We have reviewed MYEG’s ESG practices for FY23 using our proprietary scoring methodology (see page 3) and assigned it an above-average overall score of 66/100 (from 67/100 previously).

The marginal decrease in overall score was primarily attributable to a slight lowering of its “E” quantitative metrics.

We maintain our FY24-26E earnings, BUY rating and 1.8x PEGmderived TP of MYR1.68 (pegged to 20x FY25E PER @ LT mean).

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/418989.pdf