UOB Kay Hian Malaysia Research believes that MyEG Services stands to be the sole beneficiary of e-bidding for the vehicle plates.
KUALA LUMPUR: UOB Kay Hian Malaysia Research believes that MyEG Services stands to be the sole beneficiary of e-bidding for the vehicle registration number plates which can be seamlessly integrated into the existing road transport department e-portal which it manages.
It said on Wednesday based on its channel checks, “we understand that the pilot stage of the e-bidding services for vehicle plates could begin as early as next month with the actual roll-out of the services on January 2019”.
UOB Kay Hian Research said the newly-installed Transport Minister Anthony Loke had repealed the practice of allowing certain non-government organisations to sell special vehicle number plates, and announced the roll-out an electronic bidding system from January 20 9.
“The winning of the e-bidding services for vehicle plates would dispel misgivings on its abilities to retain its key government concessions and thus imply that MyEG shows no signs of losing traction with the new government.
“While revenue from the said service is not major, it allows MyEG to leverage on such modest fee-based platforms to upsell commercial services within the same domain,” it said.
The research house retained its Buy call with an unchanged target price of RM1.06 based on 12.7 times FY19F PE, implying -1.3S standard deviation which is below its historical mean price-to-earnings (PE) amid current market uncertainty.
It said its assessed trough valuation was 84 sen a share, based on 10 times FY19F PE.
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