MY EG Services only registered 300,000 illegal foreign workers at the June 30 deadline, says CIMB Research, which was 70% below its one million target.
KUALA LUMPUR: Shares of MY EG Services fell to a low of RM1.95 early Friday after CIMB Equities Research lowered its earnings outlook for the e-channel services delivery company.
At 10.10am, it was down two sen to RM1.95. There were 756,600 shares done at prices ranging from RM1.93 to RM1.97.
Also the weakness in the share price was also due to cautious outlook for the equities market.
The FBM KLCI was down 4.78 points or 0.29% to 1,649.30. Turnover was 277 million shares valued at RM102.89mil. There were 152 gainers, 233 losers and 191 counters unchanged.
MYEG builds, operates and owns the electronic channel to deliver services from various Government agencies to Malaysia citizens and businesses
CIMB Research has cut MY EG Services’ earnings per share (EPS) FY16-18F by 20%-27% to take into account the slower-than-expected registration of illegal foreign workers (IFW) which ended on Thursday.
The research house said on Friday that MyEG only registered 300,000 which was 70% below its one million target.
CIMB Research reduced the target price from RM2.83 to RM2.32, but this was still an upside of 17.8% from the last traded price of RM1.97.
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