PETALING JAYA: MyEG Services Bhd
’s (MyEG) earnings prospects remain bright going forward, thanks to its Zetrix blockchain platform.
UOB Kay Hian (UOBKH) Research said MyEG’s prospects remain rejuvenated with plenty of emerging catalysts such as earnings growth from Zetrix-related services and involvement in multiple Malaysian e-government projects.
The recent commercial launch of Zetrix cross-border services also provides assurance on stable recurring revenue and healthy cash flows moving forward, the research house added. After investing over RM1bil to develop its Zetrix blockchain, MyEG launched multiple applications on the platform.
This includes the Ztrade blockchain platform in the China customs, certificate of origin authentication services, smart contract verifiable credentials and blockchain-based digital signing and others.
UOBKH Research said some of these government-to-government blockchain applications under the Zetrix platform solidifies the company’s presence within the domestic e-government space, with more adoption across various ministries.
Earlier in October, MyEG commenced its partnership with Heitech Padu Bhd for Malaysian e-government projects.
To note, HeiTech Padu recently secured a National Integrated Immigration System project worth RM892mil. It also secured another two contracts worth around RM324mil from the Road Transport Department this year.
Leveraging on HeiTech Padu’s back-end system expertise, MyEG is able to develop a holistic platform incorporating its front-end solutions for various e-government projects in the future, the research house said.UOBKH Research is maintaining a “buy” call on MyEG with a target price of RM1.42.
For its second quarter ended June 30, 2024, MyEG’s net profit rose to RM165.42mil from RM111.56mil in the previous corresponding period, while revenue grew to RM242.28mil from RM184.88mil a year earlier.
In a filing on its quarterly performance, the company said it expects to continue introducing innovative services by leveraging on new technologies.
