MyEG / Wong Thean Soon

[winston]

My EG Services (MYEG MK)
Connecting The Dots

MYEG’s prospects have been rejuvenated with the earlier extension of its e-government concessions, which allays previous scepticism on business continuity.

Plenty of catalysts are also emerging, such as the potential reinstatement of GST, roll-out of
JPJ’s E-testing, and NIISe re-tender.

Meanwhile, the upcoming commercialisation of the Zetrix blockchain will unfold unchartered earnings potential.

We retain our view that risk-reward is appealing on depressed valuations.

Maintain BUY. Target price: RM1.18.

Source: UOBKH

https://research.uobkayhian.com/content ... 183863f2be

[winston]

not vested

MyEG Services Bhd said it has received a two-year extension of its immigration-related services contract, but has to complete a system enhancement before being allowed to resume accepting applications for the services.

The group said it received the letter of acceptance from the Ministry of Home Affairs on Tuesday, and an agreement to formalise the extension will be signed at a later date.

The e-government services provider added that it will announce the commencement date of the system enhancement in due course.

MyEG said the estimated total value of the extension will be dependent on the number of transactions performed over the two-year period.

Source: The Edge

[winston]

Immigration services to resume soon

The latest LOA related to MyEG’s immigration concession comes with a system enhancement requirement, which we think can easily be addressed.

We also believe MyEG is moving closer to the official launch of ZTrade, which should be positive for the group’s earnings.

Reiterate Add with an unchanged GGM-derived TP of RM1.10.

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... 45E35B1492

[winston]

not vested

My EG Services (MYEG MK)
3Q23: DeFi delivers (again)

Strong momentum in blockchain biz; maintain BUY

MYEG delivered another strong set of results in 3Q23 as sales of its flagship Zetrix token continued to drive growth in the group’s blockchain solutions segment.

Despite lingering uncertainties in its concession businesses, we raise FY23-25E earnings by 3-10% and nudge our TP higher to MYR1.23 (+6%).

Our TP is pegged to 20x FY24E PER (unchanged), at its LT Mean.

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/351672.pdf

[winston]

not vested

MyEG shares rise to two-month high on positive FY2023 earnings as analysts recommend ‘buy’

By Syafiqah Salim

MyEG’s net profit grew 22.32% to RM487.65 million in FY2023, from RM398.66 million a year earlier, mainly due to higher contribution from Zetrix.

Revenue increased by 20.57% to RM774.28 million against RM642.16 million in FY2022.

Fourth quarter net profit doubled to RM150.16 million from RM74.69 million a year earlier, on the back of a 42.4% growth in revenue of RM222.06 million against RM155.99 million a year ago.

Source: theedgemalaysia.com

https://theedgemalaysia.com/node/702855

[winston]

not vested

MY E.G. Services
Remains underappreciated

We raise our EPS estimates following our conversation with management as revenues from blockchain should grow with wider adoption of its applications.

Related development expenditure should fall as MyEG looks for greater monetisation, which should bring down gearing levels and improve FCF.

Reiterate Add with a higher TP of RM1.15. Valuation at 11.8x FY24F P/E fully reflects policy risks, in our opinion, but ignores EPS upside from other areas.

Source: CIMB

https://rfs.cgsi.com/api/download?file= ... 70A7A24A70

[winston]

My EG Services (MYEG MK)
1Q24: Reaching Higher Altitudes With Zetrix Blockchain

MYEG delivered another record-high core net profit of RM156m (+4% qoq), premised on resilient Zetrix coin sales and the stable momentum of its e-government services.

With more exciting catalysts arising from the blockchain segment, MYEG is on track to unleash its unchartered earnings potential.

Despite a commendable share price performance (+30% ytd), the group still offers appealing capital upside backed by strong earnings growth.

Maintain BUY with a higher target price of RM1.36.

Source: UOBKH

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

[winston]

1Q24: Strong beat
Maintain BUY with higher TP

MYEG’s decentralised finance (DeFi) segment continued its upward trajectory with another strong showing in 1Q24.

Following multiple consecutive earnings beats, we now raise our earnings estimates for FY24-
26E by 23-35%.

Our TP is also raised to MYR1.68 (+35%), albeit still pegged to 20x FY25E PER (LT mean).

Reiterate BUY on compelling outlook.

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/384213.pdf

[winston]

not vested

My E.G. Services Bhd (MYEG)

MYEG’s blockchain-based ZTrade platform could see substantial traction post-signing of official documentation between Malaysia’s Finance Ministry and the General Administration of Customs China today (June 19).

ZTrade enables the digitalisation of trade clearance and tariff computation to cut processing time by up to 50%.

Early-stage revenue generation from ZTrade will be primarily driven by the issuance of digital Certificates of Origin (CO) which is mandatory for all outbound Malaysian trade to China.

Each CO is priced at 200 yuan (c.RM130) with the option for a bundle plan (five COs at 750 yuan) made available to Malaysian exporters. ZTrade which is currently in the pilot testing phase is expected to go live by 3Q 2024.

Similar to MYEG’s Zetrix token sales business, Maybank IB Research expects ZTrade’s net operating margins to be in the c.90%-95% range. China has been Malaysia’s largest export partner for 15 consecutive years with the country accounting for the lion’s share of Malaysia’s cross-border trade last year at 17%.

Malaysia’s exports to China totalled RM192.1 bil (-9% year-on-year) in 2023. United Nation’s COMTRADE database further indicates that the compound annual growth rate (CAGR) of outbound Malaysian exports to China was a healthy 12% between 2016 and 2022.

Source: Maybank

[winston]

not vested

MIDF maintains ‘buy’ for MyEG on ZTrade’s commencement

ZTrade services operate on MyEG’s blockchain platform Zetrix, which enables all data in these certificates to be available accurately in near real-time, increasing tariff computation and customs clearance efficiency.

We expect [that] potential contribution from the Zetrix platform would match and eventually surpass the existing contribution from the e-government services.

Source: Bernama

https://theedgemalaysia.com/node/717183