KUALA LUMPUR (July 28): Shares of Zetrix AI Bhd (KL:ZETRIX), formerly known as MyEG Services Bhd, fell to a one-month low on Monday following news that the government had decided to terminate the company’s role in handling foreign worker permit renewals.
Zetrix AI’s share price dropped as much as 11 sen or 12.09% to an intraday low of 80 sen, its lowest since June 23. At the closing bell, the counter pared its losses to 83.5 sen — still down 7.5 sen or 8.24% — giving it a market capitalisation of RM6.46 billion.
Trading volume surged to a nearly four-month high of 256.14 million shares, over three times its 20-day average of 76.18 million shares. This made it the most actively traded stock on Bursa Malaysia.
A Public Accounts Committee (PAC) report on Monday revealed that the government decided to end Zetrix AI’s contract for foreign worker permit renewals following the finalisation of a six-year deal with Bestinet Sdn Bhd for the use of the Foreign Workers Centralised Management System (FWCMS).
The report cited deputy divisional secretary of the immigration affairs division Dr Hebat Hisham Mohd Yusoff, as saying the contract with Zetrix AI was structured as a one-plus-one-year arrangement rather than a fixed two-year term, allowing the government the option not to renew it.
“While investors may be reacting to the news, I believe Zetrix’s fundamentals remain intact, as foreign worker permit renewals contribute minimally to its revenue,” MBSB Research analyst Martin Foo told The Edge when contacted.
“The group’s outlook remains promising, as its main growth drivers are blockchain and artificial intelligence (AI) going forward,” said Foo, who maintained his "buy" call and target price of RM1.25 on the stock.
MyEG’s initial three-year concession for immigration-related services was due to expire in May 2023. The company later disclosed that it received a letter on July 4, 2023, from the Home Ministry confirming that the Ministry of Finance had agreed in principle to an extension. The Home Ministry formally approved a two-year extension on Oct 16, 2023.