KUALA LUMPUR: MyEG Services Bhd saw its share price gain 43 sen or 10.1% to close at RM4.70 yesterday, an all-time high, after news that the e-government service provider would work with the Immigration Department to compile and maintain the database of foreign workers in the country.
The counter rose to an intraday high of RM4.76 in afternoon trade, but eased to close at RM4.70, with a market capitalisation of RM2.82 billion. A total of 4.66 million shares were transacted.
According to news reports, the government will require employers to register details of their foreign employees through MyEG’s foreign worker permit renewal services, starting this year.
As MyEG charges a transaction fee of RM38 per foreign worker for the online service, the opposition, who is against the ruling, claimed this could enable the company to rake in an estimated annual profit of some RM100 million. Meanwhile, according to filings with Bursa Malaysia, MyEG had sold a total of 8.19 million treasury shares or a 1.4% stake, at prices between RM4.20 and RM4.26 each, or a total of RM34.57 million between Dec 30, 2014, and Jan 6, 2015.
In a note on Tuesday, CIMB Research maintained its “add” call on MyEG, with a raised target price of RM7.80.
This article first appeared in The Edge Financial Daily, on January 8, 2015.