KUALA LUMPUR (Feb 29): Shares in e-government services provider MyEG Services Bhd rose to a two-month high on Thursday’s morning trade after its full-year earnings beat analysts’ expectations.
The counter increased by 5.06% to a high of 83 sen before paring gains to 81 sen as of 11am – still up two sen or 2.53% — giving it a market capitalisation of RM6.08 billion. The benchmark index of FBM KLCI, meanwhile, rose 0.31%.
MyEG's trading volume surged more than fourfold to reach 64.93 million, against the previous day's recorded volume of 15.69 million. This figure also surpassed the stock's 200-day average volume of 36.62 million.
Out of the eight institutional analysts covering the stock, seven assigned a “buy” rating, with one analyst recommending “hold”. According to Bloomberg, MyEG's 12-month median target price (TP) stood at RM1.06.
MIDF Amanah Investment Bank Bhd noted that MyEG's revenue has been steadily increasing at a "healthy rate" following the introduction of the Zetrix blockchain platform and tokens.
“The progressive effort to introduce new service using the blockchain technology would further translate into better yield for the group. Meanwhile, the existing e-government services serve a good earnings base for the group,” said the research house in a note on Thursday.
MIDF raised its earnings estimates for MyEG to RM512.8 million for the financial year ending Dec 31, 2024 (FY2024) and RM580 million for FY2025. As such, the research house lifted its TP for the stock to RM1.07, from 97 sen previously.
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.