BIMB Securities starts coverage on MyEG, target price RM3.22

BIMB Securities starts coverage on MyE.G., target price RM3.22

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KUALA LUMPUR (Oct 28): BIMB Securities Research has initiated coverage on MyEG Services Bhd with a “buy” rating at RM2.86 and target price of RM3.22, and said MyEG is principally in the business of development and implementation of E-Government services and the provision of other related services for the E-Government initiatives.

In a note today, the research house said the three main government agencies that contribute to MyEG revenue are Jabatan Pengangkutan Jalan (JPJ), Jabatan Imigresen Malaysia (IMM) and Jabatan Kastam Diraja Malaysia (JKDM).

“We have a 'buy' on MyEG with a target price of RM3.22 via our DCF model and a WACC of 8.5%,” it said.

“MyEG have shown tremendous growth over the years with a CAGR of 18% for the past six years.

“Net earnings margin increase in tandem with the growth in operating profit from 32.8% in 2009 to 48.2% in 2015,” it said.

(Note: The Edge Research’s fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)