MyEG hopeful on relationship with new govt

Uptrend: For its third quarter ended March 31, MyEG announced an 8.62 advance in net profit to RM58mil on the back of a 12.4 rise in revenue to RM111.53mil.

PETALING JAYA: E-government provider MyEG Services Bhd is cautiously optimistic that it will be able to work with the new Government of the day, and continue to roll out new e-government services while maintaining the service level of the current services which will continue to benefit the Malaysian public, consistent with the new Government’s manifesto.

In a results filing with Bursa Malaysia detailing its prospects moving forward, MyEG said that in view of the recent pronouncements of the new Government to abolish the current GST regime, MyEG wishes to clarify that the company will wait for the official details by the Government with regard to the implementation of the new tax system before making the necessary announcements to Bursa.

“In addition, MyEG wishes to reiterate should there be any changes in policy of the new ruling Government which affects any of the services or projects todate, the company will review and make the necessary impairments or provisions for all investments and expenditure incurred to date where deemed necessary and prudent in its year ending June 30, 2018 (FY18),” it said.

Shares of MyEG have hit limit down some three times since GE14, as most investors view the company as being heavily linked to the previous government.

MyEG closed yesterday up 0.5 sen to 76.5 sen on volume of 115.4 million shares. The stock was trading at its year high of RM2.90 on April 2.

Yesterday, the company also embarked on a share buy-back, buying back five million shares at an average price of 74.3 sen, valuing the total purchase at RM3.72mil.

For its third quarter ended March 31, MyEG announced an 8.62% advance in net profit to RM58.56mil on the back of a 12.4% rise in revenue to RM111.53mil.

Thus earnings per share increased to 1.6 sen from 1.5 sen previously.

For the nine-month period, net profit was up 19.96% to RM170.38mil while revenue increased 19.63% to RM318.8mil.

For this period, earnings per share increased to 4.7 sen from 3.9 sen previously.

Both the better topline and bottomline results for the third quarter were due to a variety of reasons which included the higher transaction volumes from the online renewal of foreign workers’ permits (FWP), foreign workers rehiring programme services (FWR Services) and foreign workers’ insurance from both FWP as well as FWR Services.

Another contributor was the introduction of the foreign worker job matching and placement programme which commenced in the second quarter, along with new revenue from its motor vehicle trading related services.

Looking ahead, MyEG said that for the financial year ending June 30, 2018, the continued growth in volume of its existing concession related services, primarily the FWP as well as the online renewal of foreign workers’ insurance, are expected to contribute to its group results.

For FY18, MyEG has also embarked on a job matching and placement programme under its non-concession related services, where it will match foreign workers registered under the FWR Services with employers who require foreign worker labour.

“This is a new business division under our non-concession related services which will also complement our hostel accommodation division. While concession services continue to be our core business, non-concession related services is expected to continue to contribute to our growth for FY18,” it said.

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