MyEG / Wong Thean Soon

[winston]

vested

My EG Services – BUY

Zetrix’s mind-boggling multi-billion dollar potential being unleashed. 2023 will see MYEG
monetising Zetrix via application fees and ICO. MYEG has upsized the initial coin offering
(ICO) of Zetrix coins to up to 200m units annually depending on demand, at a minimum of
US$5/unit in Hong Kong, which has recently proposed to be a global cryptocurrency hub.

This implies that MYEG could raise >RM4b annually for the next five years via the ICO,
which effectively flows into MYEG’s P&L. Zetrix will also be integrating with China
Customs’ existing system to enable an express clearance programme in mid-Mar 23. With
these, service revenue from Zetrix should reach meaningful levels from 2023 onwards.

Likely to maintain relevance with immigration e-concession. It was reported earlier that all
immigration-related affairs would revert to the Immigration Department in 2025 after the
national integrated immigration system (NIISe) gets implemented.

Notwithstandingpossible significant delays to NIISe and opportunities for MYEG, the direct earnings impact to MYEG is only 7-8% of top-line revenue as MYEG provides various ancillary
services that the immigration department does not provide, such as insurance coverage.

Home Ministry implementing MYEG’s blockchain solutions for foreign worker recruitment.
Pursuant to the Home Ministry’s announcement, we understand that a new portal that is
empowered by the national blockchain is going live in 2Q23 to support the government’s
urgency to curb monopoly and hidden recruitment fees.

While this new portal can theoretically add c.RM50m to MYEG’s revenue annually, more importantly, it further entrenches MYEG’s relevance to the country’s e-government services. We also foresee MYEG’s foreign worker matching services gaining traction, and its blockchain solution also being applied to e-visa application services.

Impact of JPJ’s digitalisation progress not as bad as feared. Despite the introduction of
the new MyJPJ app and e-LKM (digital road tax), the road tax renewal can still be done
through all existing channels such as MYEG, JPJ portals and post offices. Our channel
checks also suggest that MYEG’s road tax renewal volume remains unchanged despite
introduction of MyJPJ app and e-LKM.

Deja vu trough valuation. BUY with a SOTP-based target price of RM1.18, which implies
22x 2023F PE (-0.5SD below five-year mean). MYEG shares now trades at 14x 2023F
PE, well below historical mean PE of 25x and around fundamental trough valuation of 12-
13x forward PE post-GE14.

SHARE PRICE CATALYST
• Backlog orders and pent-up demand for foreign worker matching services.
• Listing of its various upstart investments locally and in China.
• Zetrix’s further launches of blockchain-related new applications such as China's custom
integration and the supply chain traceability application.
• Expected to obtain Securities Commission’s approval for Zetrix to trade in a local crypto
exchange, and potential ICO in Hong Kong in June.

Source: UOBKH

[winston]

not vested

MyEG most active on workers' village tender win

by Anis Hazim

In a Bursa filing yesterday (April 12), the group said its sub-subsidiary MyEG Lodging Sdn Bhd will lease an 8.39-acre land for RM20.39 million over a duration of 30 years, to build and operate the workers' village and related facilities at its own cost.

The completed workers' village is estimated to accommodate 7,500 foreign workers and will comply with Jabatan Tenaga Kerja Semenanjung Malaysia guidelines and be certified with GreenRE (a certification to promote sustainability in the Malaysian property sector, recognised by the Penang government), it said.

Meanwhile, the project is expected to contribute positively to its earnings and net assets upon commencement of operations.

Source: theedgemarkets.com

https://www.theedgemarkets.com/node/663211

[winston]

not vested

Workers village bodes well for MYEG's immigration segment

The workers village, which is expected to provide accommodation to a workforce of 7,500 foreign workers, could yield benefits for the group's immigration segment, which accounts for about 35% of its total revenue.

Unlikely to hinder their ability to secure another three-year extension for their e-government concession in May 2023.

Source: The Star

https://www.thestar.com.my/business/bus ... on-segment

[winston]

not vested

Is Now The Time To Look At Buying My E.G. Services Berhad (KLSE:MYEG)?

My valuation model shows that the intrinsic value for the stock is MYR1.11, but it is currently trading at RM0.88 on the share market, meaning that there is still an opportunity to buy now.

Source: Simply Wall St

https://simplywall.st/stocks/my/commerc ... d-klse/amp

[winston]

not vested

Adequately priced in
TP raised to 93sen; downgrade to HOLD

The recent slew of new contract wins further strengthens MyEG's position in diversifying its revenue base amidst heightening policy risks that could impact its traditional businesses.

That said, we view the strong positive market reaction to have adequately reflected the potential growth from the new wins.

While we raise FY23-25E earnings by 3-7% and SOTP-derived TP to MYR0.93, we downgrade to HOLD, given limited upside.

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/312783.pdf

[winston]

vested

MyEG expected to gain from blockchain usage

MyEG Services Bhd is expected to benefit from the government’s announcement to implement blockchain technology on the handling of certificate of origins (COO) for Malaysian exports into China, says JP Morgan.

MyEG recently signed a partnership agreement with a wholly-owned agency of China Customs to offer cross-border trade facilitation services via MyEG’s Zetrix blockchain.

“The most immediate use case is the application for COO, trade documents required to certify an export goods originating country for tariff designation/tracking,” JP Morgan said.

JP Morgan maintained an “overweight” call on MyEG with a target price of RM1 a share but cautioned concession renewal risk and political uncertainty as risks to its call.

Source: The Star

https://www.thestar.com.my/business/bus ... hain-usage

[winston]

vested

MyEG gets ‘non-exclusive’ 3-year extension for JPJ services

Transport minister Loke Siew Fook says MyEG will only be one of the platforms providing JPJ’s online services.

MyEG had been given a three-year extension by the transport ministry in 2020, with the contract set to expire on May 22 this year.

Private vehicle owners no longer needed to display road tax stickers on their vehicles or carry a physical copy of their driving licence.

Source: FMT

https://www.freemalaysiatoday.com/categ ... -services/

[winston]

vested

12 May 2023

MyEG contract for immigration services extended

Kontrak MyEG untuk perkhidmatan imigresen dilanjut

Sumber berkata, Putrajaya bersetuju melanjutkan kontrak itu sementara menunggu Sistem Imigresen Bersepadu Nasional disiapkan.

by Faisal Asyraf

Kementerian Dalam Negeri (KDN) bersetuju melanjutkan kontrak MyEG Services Bhd bagi memudahkan permohonan pas lawatan kerja sementara (PLKS) untuk pekerja asing, menurut sumber.

Kontrak MyEG sepatutnya tamat pada 22 Mei, tetapi kementerian itu memutuskan untuk melanjutkan kontrak berkenaan sehingga sistem NIISe disiapkan.

Source: FMT

https://www.freemalaysiatoday.com/categ ... -366156373

[winston]

vested

MyEG to launch cross-border trade facilitation services by third quarter of this year

By Syafiqah Salim

The scope of the agreement covers international exports going into China, and MyEG will, via Zetrix, provide the digital service to connect to China's blockchain platform.

Other certificates relevant to cross-border trade like food safety, quarantine, and bill of lading could also be issued on the chain, which in turn increase the efficiency of tariff computation and customs clearance, especially for trade within the Regional Comprehensive Economic Partnership (RCEP).

Source: theedgemalaysia.com

https://theedgemalaysia.com/node/668969

[winston]

vested

MyEG Services Bhd’s net profit rose 25.18% to RM105.94 million in the first quarter ended March 31, 2023, from RM84.63 million a year ago.

Quarterly revenue also increased by 7.08% to RM173.22 million in 1QFY2023, from RM161.77 million a year earlier.

The group attributed the better net profit and revenue to an overall increase in revenue from its existing services with higher margins.

This has offset the cessation of revenue contributions from Covid-19 health screening and quarantine services.

Source: The Edge