This article first appeared in The Edge Financial Daily, on December 18, 2015.
My E.G. Services Bhd(-ve)
SHARES of e-government services provider MyEG (Fundamental: 2.3/3, Valuation: 1.1/3) have risen by a whopping 49.6% since it was first picked by our momentum algorithm on January 20. The stock closed 4.6% higher at an all-time high of RM3.86 yesterday.
MyEG holds concessions for a variety of e-government services, including driving theory test bookings, renewal of driving licenses and insolvency searches. The latest service addition was online renewal of foreign workers’ permits. Its growth is being fueled by the addition of more services and growth in transactional volumes.
For 1QFYJune2015, revenue grew 119.1% y-y to RM60.7 million while net profit jumped 136.7% to RM28.5 million, boosted by higher transaction volumes from the online renewal of foreign workers’ permits and insurance, and contribution from newly acquired subsidiary, Cardbiz Holding Sdn Bhd.
In September, MyEG proposed a 1-for-1 bonus issue, subject to shareholders’ approval at the EGM to be held today.