Baru-baru ni kita tgk MYEG naik byk...dari about 0.42 about 1 week ago, sampai la harini naik kepada 0.51....lowest since 1 year ago adalah 0.40, highest 0.56...kalau 0.56 broken, dia boleh pergi 0.60-0.65....so, ada yg tanya bagus ke ini counter MYEG?
Di bawah ada beberapa perkara yang kita boleh tgk:
Business Expansion
MyEG has committed itself to utulise 2 - 6% of revenue p.a. for R&D in order to roll out at least 2 services per year. MyEG’s strategy is to engage more and more Government agencies, providing a basic service as a start before expanding its suite of services. Effectively, MyEG practices a “foot in the door” strategy to let
the various Government agencies gain experience and confidence with its services before adding to the services later.
• From July 2010, MyEG will market its new immigration service, i.e. online renewal service for maids
and foreign workers. Average revenue of RM50 is expected on per transaction but may have
complementary additional income stream like insurance policy for foreign workers. In the future
MyEG may provide online applications for new maids and foreign workers.
• In 4Q10, MyEG will be embarking on a pilot project for Customs Department. It involves recording
service tax as incurred in establishment like nightclubs, restaurants, pubs, etc, in Klang Valley.
1. MyEG’s online tax monitoring system will capture sales transactions as it happens at Point of
Sales, and transmit information online to a Central Database.
2. A Special Purpose Vehicle, where it will hold 40% stake, will be set up to undertake this project.
MyEG will be paid according to how efficient this system is in increasing tax collection.
3. The infrastructure can be adapted for use when the goods and services tax (GST) is
implemented.
4. Capex of RM40m (via borrowings, mostly) to be expended over the next 2 years for this project.
Investment Merits
• Leading E-Government Services provider with established track record. The road tax renewal
service now attracts about 3,000 renewals per day, and the number of motor insurance premiums sold
daily has increased to 150-200.
• New Income Catalysts. The Customs Service Tax Monitoring Service will be the most significant of
the new services. The infrastructure is also compatible with a goods and services tax (GST) system.
With the implementation of the GST system, MyEG's scope of services should expand even further, as
most businesses will be captured under the GST system.
• Growing awareness and acceptance of E- Government services. Close to 20% of Malaysian users
undertook E-Government transaction in 2008. The low penetration amongst Internet users provides
large potential growth space for MyEG.
• Prospective double-digit growth with dividend payout policy of minimum 30%. MyEG has
achieved 5-year CAGR from FY04 to FY09, of 42.9% in revenue, 51.5% in EBITDA and 52.4% in
PATMI. From FY07 to FY09, the dividend payout ratios stood at 24.6%, 36.9% and 63.6% respectively.
• A one-stop E-Government Transaction Hub. As MyEG engages more and more Government
agencies, they will become the preferred channel for online government transaction.
Concerns
• High spending on A&P may not translate into higher revenue for the company. While current
statistics indicate a correlation between ad-spend and revenue growth, the relationship may not hold in
the future as more consumers are converted to using online services. Because many of its services are
at an early stage or at its infancy, we believe the saturation point would not be reached as yet in the
near future.
• Emergence of a competitor may disrupt business dynamics. MyEG currently has only one
competitor i.e. in the area of the Highway Code Test whereas in the other services, it has a monopoly
in the online services. Hence, another party may emerge to provide the service. However, MyEG has
the first starter advantage and also by then be the preferred provider, unless they “goofed up”.
• Concessions may not be extended on expiration. MyEG expressed confidence that they would not
face any problem with the extension of the concession due to 1. They own the infrastructure and hence
any new provider would need to invest in infrastructure 2. They would have the track record and 3.
Public acceptance of their services would be high by then.
Estimated EPS of 3.3sen for FY10
Based on its first half performance of RM9.2m net profit or 1.5sen EPS, it is estimated that that MyEG’s whole year performance would amount to RM19.8m or 3.3sen EPS. This would translate to the stock trading at a PER of 14.4x. Based on a PER approach, we believe the stock value should vary between a PER of 12x and a PER of 15x giving a range of values between 39.6sen and 49.5sen.
-Jupiter
Any comments? Just drop it down here
Di bawah ada beberapa perkara yang kita boleh tgk:
Business Expansion
MyEG has committed itself to utulise 2 - 6% of revenue p.a. for R&D in order to roll out at least 2 services per year. MyEG’s strategy is to engage more and more Government agencies, providing a basic service as a start before expanding its suite of services. Effectively, MyEG practices a “foot in the door” strategy to let
the various Government agencies gain experience and confidence with its services before adding to the services later.
• From July 2010, MyEG will market its new immigration service, i.e. online renewal service for maids
and foreign workers. Average revenue of RM50 is expected on per transaction but may have
complementary additional income stream like insurance policy for foreign workers. In the future
MyEG may provide online applications for new maids and foreign workers.
• In 4Q10, MyEG will be embarking on a pilot project for Customs Department. It involves recording
service tax as incurred in establishment like nightclubs, restaurants, pubs, etc, in Klang Valley.
1. MyEG’s online tax monitoring system will capture sales transactions as it happens at Point of
Sales, and transmit information online to a Central Database.
2. A Special Purpose Vehicle, where it will hold 40% stake, will be set up to undertake this project.
MyEG will be paid according to how efficient this system is in increasing tax collection.
3. The infrastructure can be adapted for use when the goods and services tax (GST) is
implemented.
4. Capex of RM40m (via borrowings, mostly) to be expended over the next 2 years for this project.
Investment Merits
• Leading E-Government Services provider with established track record. The road tax renewal
service now attracts about 3,000 renewals per day, and the number of motor insurance premiums sold
daily has increased to 150-200.
• New Income Catalysts. The Customs Service Tax Monitoring Service will be the most significant of
the new services. The infrastructure is also compatible with a goods and services tax (GST) system.
With the implementation of the GST system, MyEG's scope of services should expand even further, as
most businesses will be captured under the GST system.
• Growing awareness and acceptance of E- Government services. Close to 20% of Malaysian users
undertook E-Government transaction in 2008. The low penetration amongst Internet users provides
large potential growth space for MyEG.
• Prospective double-digit growth with dividend payout policy of minimum 30%. MyEG has
achieved 5-year CAGR from FY04 to FY09, of 42.9% in revenue, 51.5% in EBITDA and 52.4% in
PATMI. From FY07 to FY09, the dividend payout ratios stood at 24.6%, 36.9% and 63.6% respectively.
• A one-stop E-Government Transaction Hub. As MyEG engages more and more Government
agencies, they will become the preferred channel for online government transaction.
Concerns
• High spending on A&P may not translate into higher revenue for the company. While current
statistics indicate a correlation between ad-spend and revenue growth, the relationship may not hold in
the future as more consumers are converted to using online services. Because many of its services are
at an early stage or at its infancy, we believe the saturation point would not be reached as yet in the
near future.
• Emergence of a competitor may disrupt business dynamics. MyEG currently has only one
competitor i.e. in the area of the Highway Code Test whereas in the other services, it has a monopoly
in the online services. Hence, another party may emerge to provide the service. However, MyEG has
the first starter advantage and also by then be the preferred provider, unless they “goofed up”.
• Concessions may not be extended on expiration. MyEG expressed confidence that they would not
face any problem with the extension of the concession due to 1. They own the infrastructure and hence
any new provider would need to invest in infrastructure 2. They would have the track record and 3.
Public acceptance of their services would be high by then.
Estimated EPS of 3.3sen for FY10
Based on its first half performance of RM9.2m net profit or 1.5sen EPS, it is estimated that that MyEG’s whole year performance would amount to RM19.8m or 3.3sen EPS. This would translate to the stock trading at a PER of 14.4x. Based on a PER approach, we believe the stock value should vary between a PER of 12x and a PER of 15x giving a range of values between 39.6sen and 49.5sen.
-Jupiter
Any comments? Just drop it down here
