MyEG plans 1-for-2 bonus issue, annual profit hits record

The MyEg counter still in normal operation at Immigration headquarters in Putrajaya. MOHD SAHAR MISNI/The Star

KUALA LUMPUR: My E.G. Services Bhd (MyEG) announced a proposed 1-for-2 bonus issue of up to 1.202 billion 10-sen shares on Monday, when it also disclosed its best-ever annual profit.

In a filing with Bursa Malaysia, the e-Government services provider said it expected the issuance to be completed by the first quarter of 2017. The entitlement date would be determined later.

Among the reasons for the proposed exercise are rewarding existing shareholders and increasing its paid-up share capital to a level that is more reflective of its current scale of operations and assets employed.

MyEG’s top shareholders are Asia Internet Holdings Sdn Bhd (29.49%), managing director Wong Thean Soon (7.32% direct stake, 31.80% indirect stake by virtue of his shareholding in Asia Internet), JPMorgan Chase Bank (5.37%) and Retirement Fund Inc or KWAP (5.20%). (Based on Bursa annuncements)

“Save for the corresponding dilution in the EPS (earnings per share) of the group as a result of the increase in the number of MyEG shares pursuant to the proposed bonus issue, the proposed bonus issue is not expected to have a material effect on the earnings of the group,” it said.

In a separate filing with the exchange, MyEG announced another record earnings performance, with its bottom line figure more than doubling to RM142.97mil for the financial year (FY) ended June 30, 2016, from RM68.14mil in FY15.

For the fourth quarter, MyEG’s earnings grew 122.4% to RM51.04mil, on 93.7% higher revenue of RM87.26mil.

MyEG attributed the boost in revenue and profit mainly to higher transaction volumes from the online renewal of foreign workers’ permits and foreign worker rehiring programme services; increase in revenue contribution from its Road Transport Department-related services; and contribution from its newly acquired subsidiary Cardbiz Holding Sdn Bhd and its group of companies.

MyEG’s profit has risen every year since FY10, with its FY15 net profit margin hitting a record 48.1%.

The company’s board has proposed a final dividend of 1.3 sen per share for FY16, slightly lower than the 1.4 sen proposed a year earlier.

MyEG shares gained 4 sen to close at RM2.07 on Monday, with 9.199 million shares changing hands.