MyEG active, jumps 6.45% on new initiatives

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KUALA LUMPUR (July 23): MY E.G. Services Bhd’s shares were the second most actively-traded this morning, rising 6.45% with 65.37 million shares done.

As at 11am, it rose eight sen to RM1.32.

In a note today, CIMB IB Research said it understood MyEG is currently working on a couple of new initiatives which include a Sales and Service Tax (SST) system which the new government could use to reduce leakages when SST is launched in September.

CIMB said MyEG’s SST system could be used to track SST on a live basis and reduce leakages.

“We believe the government does not have a system to track SST on a live basis. The new government should decide in the next 1-2 months whether to use MyEG’s SST system,” CIMB said.

It maintained its Add call on the stock at RM1.24, with a raised target price to RM1.47 (from RM1.22).

"MyEG has also recently submitted a proposal to the new government for a new module related to foreign workers. If successful, we understand the company will become a “one stop centre”", the note said.

The company also plans to introduce remittance services for foreign workers soon and CIMB opines this could be an exciting revenue contributor for the company in the near future.

“While there are no details on the service charge fees yet, we understand MyEG could get a flat fee for every remittance transaction,” CIMB added.