MyEG / Wong Thean Soon

Re: MyEG / Wong Thean Soon

Postby winston » Tue May 31, 2016 9:07 am

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9MFY16 results: Momentum to pick up in 4Q

At 47% of our full-year forecast, we deem MyEG’s 9MFY16 net profit in line as 3QFY16 did not reflect full potential earnings from rehiring programme.

Rehiring programme will carry on until end-Jun. We estimate 1m illegal foreign worker registrations from mid-Feb to end-Jun.

Rehiring numbers picked up in Apr and May and we expect momentum to accelerate closer to the end-Jun deadline.

We have conservatively not imputed any potential earnings from MyEG/Celcom SIM card joint venture yet.

Remains an Add call.

Maintain Add and target price

We maintain our Add call and target price, based on unchanged 21x FY17 P/E (on par with sector target P/E). Potential re-rating catalysts include higher-than-expectednumber of illegal foreign worker registrations, strong earnings from Celcom JV and
successful launch of the goods and services tax (GST) project.

Downside risks are lower-than-expected rehiring numbers.


Source: CIMB

https://brokingrfs.cimb.com/SaCCKfuPZQX ... TzG1g2.pdf
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Re: MyEG / Wong Thean Soon

Postby winston » Fri Jul 01, 2016 8:41 am

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Rehiring programme ended yesterday

Registration of illegal foreign worker (IFW) ended yesterday (30-Jun). We estimate MyEG only registered 300,000, 70% below our 1m target.

The government is looking at much higher registration of IFWs. Rehiring programme should continue. We target MyEG to register 700,000 IFW in FY17.

We are hopeful government would lift the hiring freeze on legal foreign workers once the IFW registration target is met.

Remains an Add; technical share price consolidation likely over.

Source: CIMB

https://brokingrfs.cimb.com/rbTCX0m75vC ... cUrwQ2.pdf
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Re: MyEG / Wong Thean Soon

Postby winston » Thu Jul 21, 2016 5:45 am

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MyEG eyes operating worker hostels and an online TV channel

BY M. HAFIDZ MAHPAR

Growth in online renewal of foreign workers’ permits was one of the key factors for the strong double-digit growth in MyEG group’s bottom line for the last two financial years ended June 30.

KUALA LUMPUR: Electronic government services provider MY EG Services (MyEG) has set its sights on two new areas: operating hostels for foreign workers as well as an online TV channel.

In a filing with Bursa Malaysia, it said its unit MY EG Sdn Bhd had set up a subsidiary, MY EG Lodging Sdn Bhd, to build, own and operate hostels for foreign workers.

MyEG, which in February was appointed by the Home Affairs Ministry to undertake the registration of illegal foreign workers under a rehiring programme, said it would have a 55% stake in MY EG Lodging. The other shareholders will be Bright Billion Co Ltd (30%), Tengku Zainuddin Tengku Zahid (10%) and Mohd Farhan Dziaudin Mohd Daud (5%).

Growth in online renewal of foreign workers’ permits was one of the key factors for the strong double-digit growth in MyEG group’s bottom line for the last two financial years ended June 30.

The announcement did not reveal details such as how many hostels or hostel units are expected to be built.

In a separate announcement to the exchange, MyEG said it had incorporated a joint-venture company, Hurr Tv Sdn Bhd, to build, own and operatre an online TV channel.

Its unit MY EG Capital Sdn Bhd will hold 60% and Bright Billion 40%.

No detail was given on what kind of programmes would be shown on the channel or when the channel would begin operations.

MyEG shares ended unchanged on Wednesday at RM1.83, with 7.895 million shares changing hands.

Source: The Star
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Re: MyEG / Wong Thean Soon

Postby winston » Fri Jul 22, 2016 9:24 am

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Initiating Coverage with OUTPERFORM
New report: From good to great

We initiate coverage on MY E.G. Services (MYEG) with an OUTPERFORM rating and a RM2.50 TP. The company is a major e-service provider in Malaysia that offers staple services, such as annual renewal of road tax and foreign workers' permits, electronically.

We advise investors to accumulate MYEG, given:
(1) the eventual implementation of the GST monitoring project to curb tax evasion and
(2) the programme of re-hiring illegal foreign workers could be extended to the end of 2016

Catalysts:
(1) The government makes it mandatory for Malaysian retailers to adopt MYEG's GST electronic monitoring system (GST EMS) device; and
(2) launch of new commercial services, including payment solutions/price comparison and remittance services.

Our DCF target price of RM2.50 implies 36.6% upside. We have applied a WACC of 7.8%. Given the strong earnings growth
profile it offers (FY15-18E CAGR of 46.0%), we believe that MYEG will continue to enjoy high multiples in the long run

Source: CS

https://plus.credit-suisse.com/research ... cid=VtLFSZ
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Re: MyEG / Wong Thean Soon

Postby winston » Thu Jul 28, 2016 9:24 am

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Mobile booster

We organised a meeting for our institutional clients to meet up with management for an update on its operations.

We expect the government to extend soon the amnesty period to register illegal foreign workers (IFW).

Authorities have asked courts to impose stiffer penalties on employers who hire IFWs.

MyEG-Celcom JV is providing SIM cards to foreign workers, revised upwards FY17/18 EPS forecasts by 15-16% to reflect potential earnings from this JV.

We raise our target price to RM2.68, and maintain our Add recommendation.

Source: CIMB

https://brokingrfs.cimb.com/URfLswwtWCf ... y9Azw2.pdf
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Re: MyEG / Wong Thean Soon

Postby winston » Wed Aug 17, 2016 7:41 am

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MyEG’s sub subsidiary prepares to launch foreign worker hostel biz

MyEG's sub subsidiary has inked a three-year tenancy agreement to rent 512 hostel units in Malacca.

KUALA LUMPUR: My EG Services Bhd (MyEG), through recently-incorporated sub subsidiary MY EG Lodging Sdn Bhd (MyEL), is preparing to launch the business of operating hostels for foreign workers by signing on Tuesday a three-year tenancy agreement to rent 512 accommodation units from the Malacca State Development Corp.

“The signing of the tenancy will enable the company (MyEL) to commence operations and the ccmpany will use these sites as pilot sites for future expansion to set up more sites nationwide,” the e-Government service provider told Bursa Malaysia.

MyEG, which was appointed by the Home Affairs Ministry in February to undertake the registration of illegal foreign workers under a rehiring programme, said the monthly rental for all the units totalled RM195,000. The deposit payable amounts to RM1.36mil.

In a separate filing with the exchange, MyEG said its wholly-owned subsidiary MY EG Sdn Bhd (MESB) signed a shareholders agreement with the other MyEL shareholders to regulate the relationship among them and to set out, among others, the financial, administrative and other arrangements regarding MyEL.

MESB, which has 55% equity interest in MyEL, will be responsible for the general operations and management of the company and provide any initial funding of up to the principal amount of RM3mil.

The other shareholders of MyEL are Bright Billion Co Ltd whose shareholder/director is Quek Tee Kiam (30%), Datuk Tengku Zainuddin Tengku Zahid (10%) and Mohd Farhan Dziaudin Mohd Daud (5%).

MyEG shares gained 1 sen to close at RM2.05 on Tuesday, with 13.5 million shares changing hands.

Source: The Star
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Re: MyEG / Wong Thean Soon

Postby winston » Tue Aug 30, 2016 8:09 am

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MyEG plans 1-for-2 bonus issue, annual profit hits record

BY M. HAFIDZ MAHPAR

MyEG announces record unaudited earnings of RM142.97mil for the financial year ended June 2016.

KUALA LUMPUR: My E.G. Services Bhd (MyEG) announced a proposed 1-for-2 bonus issue of up to 1.202 billion 10-sen shares on Monday, when it also disclosed its best-ever annual profit.

In a filing with Bursa Malaysia, the e-Government services provider said it expected the issuance to be completed by the first quarter of 2017. The entitlement date would be determined later.

Among the reasons for the proposed exercise are rewarding existing shareholders and increasing its paid-up share capital to a level that is more reflective of its current scale of operations and assets employed.

MyEG’s top shareholders are Asia Internet Holdings Sdn Bhd (29.49%), managing director Wong Thean Soon (7.32% direct stake, 31.80% indirect stake by virtue of his shareholding in Asia Internet), JPMorgan Chase Bank (5.37%) and Retirement Fund Inc or KWAP (5.20%). (Based on Bursa annuncements)

“Save for the corresponding dilution in the EPS (earnings per share) of the group as a result of the increase in the number of MyEG shares pursuant to the proposed bonus issue, the proposed bonus issue is not expected to have a material effect on the earnings of the group,” it said.

In a separate filing with the exchange, MyEG announced another record earnings performance, with its bottom line figure more than doubling to RM142.97mil for the financial year (FY) ended June 30, 2016, from RM68.14mil in FY15.

For the fourth quarter, MyEG’s earnings grew 122.4% to RM51.04mil, on 93.7% higher revenue of RM87.26mil.

MyEG attributed the boost in revenue and profit mainly to higher transaction volumes from the online renewal of foreign workers’ permits and foreign worker rehiring programme services; increase in revenue contribution from its Road Transport Department-related services; and contribution from its newly acquired subsidiary Cardbiz Holding Sdn Bhd and its group of companies.

MyEG’s profit has risen every year since FY10, with its FY15 net profit margin hitting a record 48.1%.

The company’s board has proposed a final dividend of 1.3 sen per share for FY16, slightly lower than the 1.4 sen proposed a year earlier.

MyEG shares gained 4 sen to close at RM2.07 on Monday, with 9.199 million shares changing hands.

Source: The Star

http://www.thestar.com.my/business/busi ... ts-record/
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Re: MyEG / Wong Thean Soon

Postby winston » Tue Aug 30, 2016 10:31 am

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FY16: Profits double EPS

MYEG successfully doubled its profits in FY16 to RM143 mn (+109.8% YoY) as it doubled its revenue to RM282 mn (+99.0%
YoY). We deem the results in line with expectations. DPS of 1.3sen was announced (FY16: 1.8sen versus FY15: 0.95sen).

The increase in revenue was driven by higher transaction volumes from the online renewal of the foreign workers' work permit and the rehiring of illegal foreign workers. Management also attributed it to more services rendered for the Road Transport Department.

We remain positive on MYEG's prospects, driven by the GST monitoring and legalisation of illegal foreign worker projects. Its
recent entry into the foreign worker hostel business could pave way for MYEG to offer remittance services (TP could be lifted by a
further 8-34% in our sensitivity analysis on page 15 in this report).

We tweak our model and factor in slightly lower depreciation and interest expenses; earnings forecast for FY17E/18E raised by 1.8-
2.4%. We retain our DCF-based TP of RM2.50, implying 21% upside.

OUTPERFORM maintained.

Source: Credit Suisse
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Re: MyEG / Wong Thean Soon

Postby winston » Tue Aug 30, 2016 10:31 am

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FY16: Profits double EPS

MYEG successfully doubled its profits in FY16 to RM143 mn (+109.8% YoY) as it doubled its revenue to RM282 mn (+99.0%
YoY). We deem the results in line with expectations. DPS of 1.3sen was announced (FY16: 1.8sen versus FY15: 0.95sen).

The increase in revenue was driven by higher transaction volumes from the online renewal of the foreign workers' work permit and the rehiring of illegal foreign workers. Management also attributed it to more services rendered for the Road Transport Department.

We remain positive on MYEG's prospects, driven by the GST monitoring and legalisation of illegal foreign worker projects. Its
recent entry into the foreign worker hostel business could pave way for MYEG to offer remittance services (TP could be lifted by
a further 8-34% in our sensitivity analysis on page 15 in this report).

We tweak our model and factor in slightly lower depreciation and interest expenses; earnings forecast for FY17E/18E raised by
1.8-2.4%. We retain our DCF-based TP of RM2.50, implying 21% upside.

OUTPERFORM maintained.

Source: Credit Suisse
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Re: MyEG / Wong Thean Soon

Postby winston » Tue Aug 30, 2016 10:33 am

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1-for-2 bonus issue a positive surprise

At 101% of our full-year forecast, MyEG’s 12FY2016 net profit was in line with both the market and our expectations.

The proposed 1-for-2 bonus issue was a positive surprise.

The rehiring programme is ongoing, according to MyEG’s website.

MyEG’s balance sheet net cash of RM102m or RM4.3 net cash per share.

Maintain Add, we raise our TP by 20% due to its 52% 3-year EPS CAGR outlook.

Source: CIMB

https://brokingrfs.cimb.com/MDVhu75UJjL ... 3zPGQ2.pdf
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