MyEG active, up in early trade

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KUALA LUMPUR (April 30): Shares of My E.G Services Bhd rose in active trade today as on positive development for the company’s foreign worker permit renewal (FWPR) services.

At 9.45am, the stock rose 6.53% or 16 sen to RM2.45 with 6.8 million shares done. It had earlier risen to a high of RM2.47.

CIMB Research has maintained its “Add” rating on MyEG at RM2.39 with an unchanged target price of RM3.54 and said although the Immigration Department's latest announcement on the mandatory use of MyEG’s FWPR from 2 May onwards was not a surprise to it, this news should be received positively by investors.

In a note yesterday, the research house the authorities nominated MyEG to build and maintain a database on foreign workers in Jan 2015, and the only way to implement this was requiring all to use FWPR.

“We maintain our EPS forecasts and target price, based on unchanged 21x CY16 P/E (in line with its peers).

“The stock remains an Add. Potential re-rating lysts include the news that all employers must use FWPR from May onwards and the successful launch of its CSTM project before year-end,” it said.