KUALA LUMPUR (Feb 18): MyEG Services Bhd (KL:MYEG) reported a 20.62% increase in its fourth quarter net profit, as revenue jumped 32.19%, driven by contributions from its Web3 application service fees on the Zetrix blockchain platform, digital ID registration and transactions, and sale of Zetrix tokens.

The group made a net profit of RM181.13 million for the fourth quarter ended Dec 31, 2024 (4QFY2024), up RM30.97 million from RM150.16 million a year earlier, while revenue surged to RM293.53 million from RM222.04 million, its bourse filing showed.

MyEG's earnings per share for 4QFY2024 increased to 2.40 sen from two sen in 4QFY2023. The group plans to pay a final dividend of 2.49 sen per share, subject to shareholders' approval.

If approved, this would bring its total dividend for FY2024 to 2.74 sen per share, up from 1.93 sen per share in FY2023.

Earnings for the quarter under review were partially offset by the recognition of a fair value loss on MyEG’s investment in HeiTech Padu Bhd (KL:HTPADU). MyEG holds a 15.89% stake in HeiTech Padu, making it the second-largest shareholder after Rosetta Partners Sdn Bhd, which owns 22.45%.

Excluding this one-off impact, operating profit after tax would have risen by RM40.35 million or 26.89%, instead of just RM31.12 million to RM181.17 million, according to MyEG.

For the full FY2024, MyEG’s net profit jumped 43.04% to RM697.55 million from RM487.65 million in FY2023, as revenue climbed 31.34% to RM1.02 billion from RM774.26 million. This marks MyEG’s highest annual earnings since its listing in January 2007.

Looking ahead, MyEG expects to drive its organic growth in FY2025 by introducing innovative services that integrate artificial intelligence (AI) with its blockchain and Web3 infrastructure in Malaysia and globally.

The company, in collaboration with MIMOS Technology Solutions Sdn Bhd, a wholly owned subsidiary of MIMOS Bhd, is developing components of the Malaysia Blockchain Infrastructure (MBI) based on Zetrix’s blockchain technology, which it will operate.

This MBI can be used to protect user privacy and data confidentiality of off-chain information, and to enable ownership specification, which would potentially serve as a national digital identity, it said.

“With MBI and its own Layer 1 blockchain platform namely Zetrix coming online, MyEG continues to commercialise innovative services as Web 3.0 becomes widely adopted,” said the company.

Additionally, MyEG highlighted Zetrix’s integration with China’s national blockchain platform, “Xing Huo”, which will facilitate cross-border trade and mark the group’s expansion into the global market.

“In addition, with AI technology becoming widely adopted, the company intends to leverage on this evolving technology to develop autonomous applications which are able to operate and perform mundane and repetitive tasks without any human supervision,” it added.

At Tuesday's closing bell, shares of MyEG gained two sen or 1.98% to RM1.03, giving the company a market capitalisation of RM7.6 billion.