KUALA LUMPUR (Jan 7): MyEG Services Bhd saw its share price gained 43 sen or 10.1% to close at RM4.70, hitting its all-time high, after news 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 intra-day high of RM4.76 in the afternoon trading session, but eased to close at RM4.70, with a market capitalisation of RM2.82 billion. Some 4.66 million shares were transacted today.

According to news report, the government will require employers to register details of their foreign employees through MyEG’s Foreign Worker Permit Renewal (FWPR) 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 to 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 yesterday (Jan 6), CIMB Research maintained “add” call for MyEG, with a raised target price of RM7.80.

“We bump up our Earnings per share (EPS) forecasts by 38-63% to reflect higher earnings, mainly from the FWPR. This raises our target price, which remains pegged to its peers’ 21 times calendar year 2016 (CY16) price to earnings ratio (PER).

“Successful launch of the customer service tax monitoring system (CTSM) project and the new developments in the FWPR, are potential re-rating catalysts for the stock,” CIMB said.