KUALA LUMPUR (Feb 27): Malaysia's e-Government services provider, MyEG Services Bhd, has posted a 25.7% increase in its second quarter net profit to RM14.09 million or 2.4 sen a share, for the three months ended Dec 31, 2014.

Revenue meanwhile has grown 26.9% to RM29.77 million, on the back of higher transaction volumes from its e-solution services with the Road Transport Department (JPJ) and Immigration Department.

MyEG plans to pay a dividend of five sen a share for 2QFY14.

For the six months to Dec 31, 2014, MyEG recorded a 32.3% higher net profit at RM26.13 million; while revenue inched up to RM57.49 million, from RM43.87 million previously.

On prospects, MyEG said the continued growth in the transaction volume of its existing services, primarily the online renewal of foreign workers’ permit and online transfer of vehicle ownership, is expected to drive its performance in the financial year ending June 30, 2015 (FY15).

"With our concession period extended for a further five years from May 23, 2015 to May 22, 2020, we will continue to focus on rolling out services from new and existing government agencies, which are relevant to Malaysians.

"At the same time, we will also expand our commercial and ancillary services, which will leverage on the co-branded card with RHB Bank Bhd," it added.

MyEG (fundamental: 2.6; valuation: 1.5) closed unchanged at RM2.50, with a market capitalisation of RM2.99 billion.

(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.)