MyEG / Wong Thean Soon

[winston]

vested

MyEG posts 1Q net profit of RM105.94mil

The better performance was also buoyed by a one-off recognition of fair value gain in investment as a result from the listing of its investment in Agmo Holdings Bhd and contribution from newly launched services from the Zetrix blockchain platform.

The company said the contribution from the sale of Zetrix tokens and increase in foreign worker job matching service due to the uplifting of freeze on foreign worker recruitment also gave a positive impact to its earnings.

Zetrix has also been integrated with China's national blockchain platform, namely "Xing Huo", which will allow ease of cross border trade to take place and it will be the group's foray into the global market.

Source: Bernama

https://www.thestar.com.my/business/bus ... rm10594mil

[winston]

not vested

1Q23: Above Expectation; The Start Of Exciting Times

MYEG’s 1Q23 core net profit rose 25% yoy, well above our expectation.

Growth drivers: government e-services, foreign worker matching services and blockchain, with the latter providing upside surprise.

Following the renewal of its e-government services, attention will focus on the Zetrix blockchain platform’s potential – the just-launched China customs linked services and ICO of Zetrix coins (in Jul 23).

Maintain BUY. Target price: RM1.18.

Source: UOBKH

https://research.uobkayhian.com/content ... 296ae27608

[winston]

not vested

1Q23 above expectations; U/G to BUY
Upgrade to BUY; TP raised

MyEG’s 1Q23 earnings exceeded expectations due to stronger-than-expected margins and stable JPJ-related business despite recent policy headwinds.

We raise FY23-25E earnings by 8-12% and tactically upgrade the stock from HOLD to BUY as the recent share price weakness provides greater upside to our new TP of MYR1.03 (+10sen), based on sum-of-parts methodology.

The immigration and blockchain segments are near-term key growth drivers, which could negate the decline in transport revenue.

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/322068.pdf

[winston]

not vested

My EG Services (MYEG MK)
Rolling Out The Runway For Customs Pilot

We expect the Zetrix blockchain’s huge potential to be unleashed in 3Q23, which could deliver mind-boggling revenues from the China customs integration platform and Zetrix token ICO.

Meanwhile, we expect stronger 2Q23 results as demand for Zetrix tokens rises with the ongoing pilot phase of the China customs platform.

Maintain BUY and target price of RM1.18, with a reference blue-sky target price of RM3.73 should MYEG fully capitalise on its Zetrix treasury of 1b coins.

Source: UOBKH

https://research.uobkayhian.com/content ... e3fe37c267

[winston]

vested

MyEG says govt agrees to extend its contract for immigration services, appoints it as revenue collector

By Izzul Ikram

KUALA LUMPUR (July 7): MyEG Services Bhd announced that the government has agreed to extend its concession as the provider of online services for the Immigration Department of Malaysia, and has appointed it as the collection agent for government revenue.

In a Bursa Malaysia filing, the e-government services provider said it received a notification letter dated Tuesday (July 4) from the Ministry of Finance on Friday.

“The terms of the extension will be finalised pursuant to further discussion with the government in due course and an agreement to formalise the extension will be signed at a later stage,” MyEG said.

Previously, MyEG secured a three-year extension in 2020 extending its immigration services concession from May 22, 2020 to May 22, 2023 — with an estimated total value of RM208 million.

Back in February this year, MyEG shares underwent a period of turbulence — falling as low as 60.5 sen on Feb 13 — after the future of its immigration-related services concession was put into question.

This was due to a New Straits Times report having quoted Immigration Department Director General Datuk Seri Khairul Dzaimee Daud as saying that the Home Ministry had set aside RM900 million for the roll-out of the National Integrated Immigration System (NIISe) in two years, and that the new system is expected to be a "game changer" that would improve the department's efficiency and customer experience.

NIISe, which is being developed by Iris Corp Bhd, is positioned to replace the current Malaysian Immigration System (myIMMS) the department has been using for around 13 years.

However, NIISe — the apparent successor of myIMMS — has come under some scrutiny with Home Minister Datuk Seri Saifuddin Nasution Ismail back in March saying Iris Corp have not achieved adequate progress.

Two months later, in May, the project — awarded to Iris Corp back in March 2021 and initially given a delivery deadline of August 2024 — was provided a one-year extension to August 2025.

Later the same month, Saifuddin told the Dewan Rakyat that if Iris Corp is unable to implement the project, the government will appoint another contractor capable of implementing the project to ensure the new immigration services system can be realised.

Shares in MyEG closed 1.5 sen or 2.05% lower at 71.5 sen, giving the group a market capitalisation of RM5.35 billion. Meanwhile, Iris Corp's shares ended unchanged at 9.5 sen, valuing the company at RM294.48 million.

Source: The Edge

https://theedgemalaysia.com/node/674014

[winston]

not vested

My EG Services (MYEG MK)
Dust Settling; Immigration Concession Not Losing Relevance

Last Friday, MYEG’s immigration concession was extended by the Ministry of Home Affairs, officially putting an end to earlier misgivings that the group is losing relevance within the Malaysian e-government domain.

We expect investors’ confidence to be gradually restored, while risk-reward is highly appealing at this juncture with heavily discounted valuations, an impressive earnings track record and unchartered potential of the Zetrix blockchain.

Maintain BUY and target price of RM1.18.

Source: UOBKH

https://research.uobkayhian.com/content ... ebc744c4ce

[winston]

not vested

MyEG 2Q net profit up 25%; declares 0.25 sen dividend

By Anis Hazim

MY EG Services Bhd (MyEG)’s net profit rose 25.85% to RM111.56 million for the second quarter ended June 30, 2023 (2QFY2023), from RM88.64 million a year ago, driven by the increase in revenue from the group’s existing services.

MyEG said the quarterly earnings were also contributed by its newly launched Zetrix blockchain platform and from the sale of Zetrix tokens.

Quarterly revenue improved by 14.27% to RM184.88 million from RM161.79 million, also driven by higher revenue from existing services and the Zetrix blockchain platform.

Source: theedgemalaysia.com

https://theedgemalaysia.com/node/679491#

[winston]

not vested

My EG Services (MYEG MK)
2Q23: Positioning For A Promising 3Q

MYEG posted another record-high core net profit of RM111.6m (+26% yoy), anchored on
the steady momentum of its e-government services as well as a better contribution from
the sales of Zetrix tokens.

Expect a strong rebound from today’s overly pessimistic valuations, as the earlier misgivings
over the continuity of its e-government concession have been proven wrong, and investors will now focus on a likely strong 3Q23 driven by Zetrix’s soft ICO.

Maintain BUY and target price of RM1.18.

Source: UOBKH

https://research.uobkayhian.com/content ... df7d47e154

[winston]

not vested

My EG Services (MYEG MK, TP: MYR0.79, BUY, TP: MYR1.16): MYEG’s 2Q23 results were strong, on better-than-expected contribution from its blockchain solutions business.

With its flagship Zetrix token set to be listed next month on Coinstore, a SG-based crypto exchange, token sales are expected to pick-up further in 2H23.

We have raised FY23-24E earnings by 2-6% and we nudge our TP higher to MYR1.16 (+2%).

Our TP is pegged to 20x FY24E PER, at MYEG’s LT Mean; BUY rating maintained.

Source: Maybank

[winston]

not vested

MyEG posts steady quarterly performance

Zetrix has been integrated with China’s national blockchain platform, Xing Huo, which will allow cross border trade.

Aims to expand its earnings both locally and regionally with the future launch of cross-border trade facilitation services with China and the Philippines.

Source: The Star

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