MyEG's shareholders okay with bonus issue

by **Cals** Fri 18 Dec 2015, 20:37

MyEG's shareholders okay with bonus issue

By Gho Chee Yuan / theedgemarkets.com | December 18, 2015 : 1:49 PM MYT

KUALA LUMPUR (Dec 18): My [size=16]E.G. Services Bhd (MyEG) ([You must be registered and logged in to see this image.] Valuation: 1.10, Fundamental: 2.30)'s shareholders have approved the e-government services provider's proposed one-on-one bonus issue of up to 1.2 billion new shares to reward its shareholders today.

Without disclosing how many shareholders gave their consent to the bonus issue, MyEG said all resolutions being tabled in the annual general meeting and extraordinary general meeting today were carried.

When asked to comment on the group's performance for the financial year ending June 30, 2016 (FY16), its executive chairman Datuk Dr Norraesah Mohamad said: "Everything is good and the company is growing as we are expanding our businesses."

But she declined to elaborate on the matter.

Kenanga Research had earlier forcasted MyEG to register a two-year net profit and compound annual growth rate (CAGR) of 49%, bringing its net profit to RM113.9 million in FY16 from RM50.7 million in FY14.

"Our forecast assumptions are mainly underpinned by a conservative two-year revenue CAGR of 20% in its JPJ (Road Transport Department) services, growth of 15% in market share of immigration in FY16 and CSTM (Customs Service Tax Monitoring) revenue contribution of RM25 million in FY15 and RM50 million in FY16," the firm added.

MyEG was picked as a Stock With Momentum today. In a report published on The Edge Financial Daily, The Edge Research noted the latest service addition provided by MyEG was online renewal of foreign workers' permits.

"Its growth is being fueled by the addition of more services and growth in transactional volumes," it added.

For first quarter ended Sept 30, 2015 (1QFY16), MyEG's net profit jumped 136.7% to RM28.5 million from RM12.04 million, boosted by higher transaction volumes from the online renewal of foreign workers' permits and insurance and contribution from newly acquired subsidiary, Cardbiz Holding Sdn Bhd.

Its 1QFY16 revenue grew 119.1% on year to RM60.7 million from RM27.72 million.

For FY15, the company saw its annual net profit increase by 36% to RM68.14 million from RM50.11 million previously. Its cumulative revenue for the period stood at RM141.52 million — a 29% leap from RM109.87 million in FY14.

In September, MyEG had proposed a one-for-one bonus issue, to enlarge its share base and encourage trading liquidity aside from rewarding its shareholders.

The group targets to complete the exercise by the first quarter of 2016.

Shares in MyEG gained eight sen or 2.07% to trade at RM3.94 as of the 12.30pm trading break, for a market capitalisation of RM4.74 billion.

(Note: The Edge Research's fundamental score reflects a company's profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)

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