UOB Kay Hian Malaysia Research believes that MyEG Services stands to be the sole beneficiary of e-bidding for the vehicle plates.
KUALA LUMPUR: My E.G. Services Bhd
’s (MyEG) share price rose to a high of RM2.19 early Tuesday after its strong set of results and its proposed bonus issue.
At 9.17am, it was up nine sen to RM2.16 with 7.01 million shares done. Its call warrants, MyEG-CX rose 1.5 sen to 9.5 sen with 16.1 million units traded.
The FBM KLKCI rose 3.59 points or 0.21% to 1,685.19. Turnover was 120.78 million shares valued at RM92.24mil. There were 173 gainers, 142losers and 181 counters unchanged.
MyEG, which is a concessionaire for the Malaysian E-Government MSC Flagship Application, proposed one-for-two bonus issue of up to 1.202 billion shares of 10 sen each.
Also its earnings surged to RM142.97mil for FY ended June 30, 2016, from RM68.14mil in FY15.
In the Q4, its earnings jumped 122.4% to RM51.04mil as revenue rose 93.7% to RM87.26mil.
CIMB Equities Reserch said at 101% of our full-year forecast, MyEG’s 12FY2016 net profit was in line with both the market and its expectations.
“The proposed one-for-two bonus issue was a positive surprise. The rehiring programme is ongoing, according to MyEG’s website. MyEG’s balance sheet net cash of RM102mil or RM4.30 net cash per share.
“Maintain Add, we raise our target price by 20% due to its 52% three-year earnings per share compounded annual growth rate outlook,” it said.
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