PETALING JAYA: Analysts are optimistic about MyEG Services Bhd’s prospects as its e-government foundation remains firm and new opportunities on the horizon are set to drive the company forward.
UOB Kay Hian (UOBKH) Research said the e-services provider has continued to deliver record-high earnings despite the termination of the National Integrated Immigration System (NIISe) project earlier this year.
The research firm also noted the impact on transaction volume was minimal as noticed in the past two quarterly results.
“Following the termination of the NIISe contract, we believe MyEG is at the forefront of securing the project should the government choose to initiate a re-tender or handpick the leading bidders from the previous bidding exercise,” it said in a note to clients yesterday.
UOBKH Research added that aside from NIISe, the recent 12th Malaysia Plan revealed the government’s plan to establish a National Digital Identity system, which may potentially represent another sizeable concession up for MyEG’s bidding.
Another key factor that would accelerate MyEG’s growth is the Road Transport Department’s e-Testing service, which is expected to be rolled out at the end of this year.
UOBKH Research said MyEG is currently conducting the Proof of Concept for e-Testing in five driving institutes in Peninsular Malaysia and is looking at refining some of the details now.
“Our earlier assessments revealed that e-Testing may potentially lift MyEG’s profit by RM40mil to RM50mil upon commercial rollout,” it said.
On top of that, MyEG’s Zetrix blockchain rollout will come to a head at its initial coin offering (ICO) at the end of this month.
The official launch of its certificate of origin authentication service alongside China customs is slated for Oct 23, 2023 and represents the maiden commercial deployment of the Zetrix platform.
“Contributions from both Malaysian and Philippines transactions are expected to drive up demand for Zetrix tokens, underpinning our assumptions of a good subscription rate for the ICO,” UOBKH Research noted.
Additionally, it said the potential reintroduction of the goods and services tax (GST) will benefit the company as it was tasked to deploy the GST monitoring system previously.
