MyEG / Wong Thean Soon

Re: MyEG / Wong Thean Soon

Postby winston » Wed Jan 09, 2019 9:54 am

not vested

MY E.G. Services

Overseas operations could surprise on the upside

MyEG’s Bangladesh associate is expected to implement the VAT monitoring system in the country in 2019F, which was a positive surprise to us.

Its Philippine associate is expected to launch online car road tax and insurance renewal services from Feb 19 onwards, another positive surprise.

Raise FY20-21F EPS by 4.4-7.0% and TP from RM1.86 to RM1.96. The stock remains an Add and is attractive at 10.4x FY20F P/E.




Source: CIMB

https://brokingrfs.cimb.com/w1toBkqi5pi ... gFFTg2.pdf
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Re: MyEG / Wong Thean Soon

Postby winston » Thu Jan 17, 2019 1:52 pm

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Diversify To Move Forward

The finalisation of foreign worker management process would appear to be a potential near-term catalyst for MYEG, as it removes the current overhang and uncertainties on the stock.

We stay confident that MYEG would remain relevant given its good track record and indispensable back-end system.

Furthermore, MYEG’s overseas operations have been steadily adding new services to gain market
share.

Maintain BUY. Target price: RM1.62.

Source: UOBKH

https://research.uobkayhian.com/content ... 63e335be7d
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Re: MyEG / Wong Thean Soon

Postby winston » Wed Mar 06, 2019 10:14 am

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MyCC finally accepts MyEG’s changes

MyEG announced that the MyCC has accepted the changes made by MyEG to the group’s online foreign worker renewal services.

This is positive news for MyEG as it should bring to a close MyCC’s 4-year challenge against the group for alleged monopoly abuse.

Remains an Add; registration of new foreign workers is expected to be the domestic operations’ new revenue growth driver over the next few years.

Remains an Add

We maintain our EPS forecasts and target price, based on an unchanged 21x 2020F P/E, a 40% premium over the technology sector’s 2020F 15x target P/E; the premium is to reflect the strong earnings growth potential from overseas operations over the next few years.

The stock remains an Add. Re-rating catalysts are stronger-thanexpected overseas profits while a downside risk is failure to register NFWs in Malaysia this year.


Source: CIMB

https://brokingrfs.cimb.com/-U6rtFLm5zc ... MDN0w2.pdf
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Re: MyEG / Wong Thean Soon

Postby winston » Fri Jul 12, 2019 9:52 am

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My EG Services (MYEG MK)
Pending Watershed Events


We cut FY19 net profit forecast by 9.4% on lower matching assumptions as the government is still freezing foreign worker intake as well as due to nascent job replacement service which began on 1 Jul 19.

Nevertheless, maintain BUY on longer term prospects with a higher target price of RM1.66, pegging it at 18x FY20 PE (from 20x FY19F PE) owing to the long-awaited finalisation of foreign worker management process.

Note that earnings upside could be huge once the government finalises the foreign worker management process.

Maintain BUY with a higher target price of RM1.66 (previously RM1.62), as we roll forward valuation from FY19 to FY20, pegging it at 18x FY20F PE (from 20x 2019F PE) on the back of the long-awaited finalisation of the foreign worker management process.

Nevertheless, we remain confident that MYEG could be at the cusp of a re-energised growth
period as its e-government services are soon set to gain significant momentum.

Source: UOBKH

https://research.uobkayhian.com/content ... fa61f90f6a
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Re: MyEG / Wong Thean Soon

Postby winston » Mon Jul 15, 2019 12:44 pm

MyEG Services Bhd (MyEG)

A fund manager who declined to be named said e-government services providers like MyEG would benefit from the implementation of government policies such as targeted petrol subsidies for the Bottom 40 section of society, as these policies would require e-government systems to support them.

MyEG shares closed four sen higher at RM1.53 last Friday, while eight out of nine analysts covering the stock have kept “buy” calls on it, with a median TP of RM1.68, indicating a potential 9.8% upside.

In a note dated May 31, BIMB Securities Research noted that the group’s 1HFY19 core earnings were flat despite an 8% rise in revenue, no thanks to higher net operating expenses and taxation in 2QFY19.

That said, the research house decided to keep its “buy” on the stock with a TP of RM1.70, which implies a FY19/20F PE of 25 times and 22 times, respectively.

“We remain positive on MyEG given its strong business prospects and established branding, which could provide structural earnings growth to the company,” it added.

Source: The Edge
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Re: MyEG / Wong Thean Soon

Postby winston » Mon Sep 02, 2019 9:47 am

3QFY19: Recruitment services have started

9MFY9/19 net profit was below at 57% of our full-year forecast (67% of consensus). We expect a lower intake of new foreign workers in FY19F.

Recruitment of new foreign workers started on 1 Jul 2019. We believe MyEG already has orders to recruit more than 50,000 new foreign workers.

Remains an Add. We cut FY19F EPS by 10.1% as we expect a lower number of registered new foreign workers brought in by the company in FY19F.

Source: CIMB

https://brokingrfs.cimb.com/WQyFg_VI4wa ... NTcow2.pdf
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Re: MyEG / Wong Thean Soon

Postby winston » Thu Oct 03, 2019 9:32 am

not vested

My EG Services

Exciting opportunities in Malaysia’s immigration space, with the initial kick-off of potentially multi-billion ringgit contracts as soon as this month (Oct 19).

We remain bullish on MYEG clinching a sizeable e-government contract which would ensure a re-energised growth period for the company – most prominently being the visa project.

The foreign worker matching programme will see its full potential once the government finalises the Memorandum of Understanding (MOU) with the Bangladesh counterpart.

Share Price Catalyst

The visa project could be awarded in Oct 19 as:
a) the existing visa contract run by privately-owned Ultra Kirana is expiring in Oct 19 and
b) next year is Visit Malaysia Year 2020 in which the government is looking to attract more tourists to Malaysia.

The bottleneck in MYEG’s foreign worker matching programme is expected to be fully
lifted in end-19 once the government finalises its negotiation with the Bangladesh
counterpart.

Note that the government has already implemented the MOUs on labour
supply from Nepal and Myanmar.

Source: UOBKH
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Re: MyEG / Wong Thean Soon

Postby winston » Tue Oct 15, 2019 9:40 am

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My EG Services (MYEG MK)
Expecting First Quarter Of Sequential Growth In 4QFY19 Since GE-14


We expect MYEG to register its first quarter of sequential growth since GE14 in 4QFY19 as the unfreezing of foreign worker intake since Jul 19 has contributed to higher job matching volume.

We peg our target price to 20x (from 18x) FY20 earnings as we take into account partial option value of future earnings growth.

However, we cut our FY20/21 earnings due to slower-than-expected thawing of the foreign worker matching process and new contract awards.

Maintain BUY with a higher target price of RM1.71.

Source: UOBKH

https://research.uobkayhian.com/content ... ddafe6ba1c
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Re: MyEG / Wong Thean Soon

Postby winston » Fri Oct 18, 2019 9:14 am

not vested

Updates for MYEG, foreign fund maybe tired of waiting for announcement. Their current holding is 25%. Update from research team:

MYEG (BUY/TP:RM1.71) share price plunged 11% today to RM1.25.

While we understand that the selldown could be tied to a US fund which owns approximately 40m shares of MYEG, a few concerns were cited in the market.

We feel that the selldown's unwarranted as MYEG should still deliver 20% growth based on the country's partial thawing of foreign labour hiring policy. Our response to the three concerns are as follows:

1) 15% foreign worker cap in Malaysia’s workforce by 2020.
Comment: We are not perturbed by it as the 15% target has always been the case and current foreign worker of 2m is still below the cap of 2.2m, allowing a 10% growth. Our earnings growth is mainly attributed to higher job matching services thanks to the unfreezing of foreign worker intake since Jul 19. Consequently, we are expecting its first sequential growth in 4QFY19 since GE14 and a 20% earnings growth in FY20.

2) Delay in e-visa tender.
Comment: While the tender of e-visa contract has been delayed for months, we gather that the management still believes the current visa system must go as the incumbent’s concession is expiring in Oct 19 as well as various security lapses of the system. Management is guiding for tender to be open in Nov 19.

3) Review of current road tax system
Comment: There have been talks that the Ministry of Transport are reviewing the road tax system by replacing the conventional sticker with radio frequency identification (RFID). We opine that the RFID will not change the need for a road tax renewal as well as insurance.

Despite all these 3 concerns, MYEG’s valuation is supported by 20% in earnings growth in FY20 (mainly driven by job matching service) even without contract wins as long as current concessions is intact.

Source: UOBKH
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Re: MyEG / Wong Thean Soon

Postby winston » Fri Oct 18, 2019 10:59 am

not vested

My EG Services (MYEG MK)
Nothing Changes


MYEG’s share price plunged 11% yesterday to close at RM1.25.

While we understand that the selldown could be tied to a foreign fund selling its stake (given MYEG’s high foreign shareholding of approximately 25%) amid a few concerns cited in the market, we feel that the selldown is unwarranted as the company will see 20% earnings
growth in FY20 even without contract wins, as long as current concessions remain intact.

Maintain BUY with unchanged target price of RM1.71.

Source: UOBKH

https://research.uobkayhian.com/content ... fd30e57244
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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