KUALA LUMPUR (Oct 28): BIMB Securities Research has initiated coverage on My E.G. 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 3 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 6 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.