MIDF Research maintained a positive outlook on MyEG.
PETALING JAYA: MyEG Services Bhd (MyEG) is expected to leverage on its blockchain technology to drive organic expansion through the introduction of innovative services in Malaysia and abroad.
The company’s continued emphasis on international markets has significantly reduced its dependence on domestic operations, a trend analysts view positively.
MyEG’s performance for the financial year ended Dec 31, 2024, was particularly robust, with revenue surpassing the RM1bil milestone for the first time.
Its revenue rose 31.3% year-on-year (y-o-y) to RM1.02bil while net profit surged 43% y-o-y. Its fourth-quarter financial year 2024 (4Q24) bottom line came in at RM181.13mil, marking a 20.6% y-o-y increase, on the back of a 32.2% y-o-y jump in revenue.
BIMB Research maintained its “buy” recommendation on MyEG, with a target price (TP) of RM1.44 a share, citing strong demand for the Zetrix blockchain platform and the sale of Zetrix tokens as primary growth drivers.
“Growth was primarily fuelled by sustained demand for Zetrix tokens, following the expansion of services on the Zetrix blockchain platform,” the brokerage explained.
It highlighted MyEG’s revenue from international customers increased over 180% y-o-y to RM363mil in 2024 from RM128mil in 2023. This accounted for 36% of MyEG’s total revenue, up from 16% previously, marking a strategic shift in the company’s revenue mix.
The group declared a final dividend of 2.49 sen per share, bringing the total dividend in 2024 to 2.74 sen per share, translating to a 2.7% yield at the current share price.
MIDF Research also maintained a positive outlook on MyEG, reiterating its “buy” recommendation and raised its TP to RM1.25 a share from RM1.14.
“The rollout of more services using the Zetrix blockchain platform and higher sales of Zetrix tokens continue to support the group’s revenue growth.
“The existing e-government services serves as a good earnings base for the group,” the brokerage said.
MIDF Research acknowledged the earnings contribution from Zetrix was on track to overtake the company’s core e-government services, though it cautioned that “dependency on the government would serves as an inherent policy risk to the group”.
The brokerage noted that MyEG’s 2024 financial performance came in slightly above estimates, making up 106.2% of MIDF Research’s full-year earnings forecasts.
“In view of the better-than expected performance, we raise 2025 and 2026 earnings estimates higher by 9.5% and plus 13.7% respectively. This is achieved by inputting higher contribution, primarily from the Zetrix blockchain platform,” MIDF Research said.
The research house based its new TP on a forward price-to-earnings ratio of 11.7 times, applying a revised 2025 earnings per share estimate of nine sen.
Overall, analysts remain optimistic about MyEG’s prospects, with the company’s blockchain-driven expansion expected to underpin sustained growth.
The strong demand for its Zetrix services and international business traction further reinforce its positive trajectory, despite inherent regulatory risks associated with its e-government segment.
MyEG shares closed three sen lower at RM1 yesterday
