Technical tracker - HLIB Retail Research – 22 June 2022 MYEG: | HLeBroking
Technical tracker - HLIB Retail Research – 22 June 2022
MYEG: An excellent e-government and reopening proxy
E-service provider. Listed in 2005, MYEG is Malaysia’s leading digital services company, providing a wide range of government (concession) and commercial services. These services include facilitating online payments for government services such as the renewal of vehicle road tax, foreign worker permits, and digital health travel pass system. Over the years, MYEG has been entrusted by the Malaysian government to provide vital services for JPJ, JIM, KKM, and more. Beyond Malaysia, MYEG has expanded its footprint into the Philippines, Indonesia, and Bangladesh markets.
Still growing strong. Although the contribution from MYEG's healthcare segment is expected to taper off following the gradual removal of Covid-19 SOPs (no quarantine or testing needed for fully vaccinated tourists), we believe this will be cushioned by MYEG's immigration segment as well as the road transport segments, which are deemed to be a prime beneficiary of border reopening. In particular, MYEG Immigration segment's matching and permit renewal services will likely to get a strong boost following the return of foreign workers amid acute labour shortages across most sectors. This is reflected by the group's strong 50k backlog orders for its foreign workers' matching services (vs. 24k headcount per year during pre-pandemic).
Also, with the commencement of the proof of concept (POC) for the automated driving test and training system, the official rollout of JPJ's e-testing system is expected to deliver ~RM50-60m earnings p.a. to MYEG. On the other hand, Zetrix's Blockchain-chain cross-border trade service platform that is slated to launch by July will allow MYEG to monetize Zetrix by charging gas fees on transactions, tracking fees on the supply chain traceability, as well as transaction fees on cross-border trades
Grossly oversold. After plunging -20% YTD, MYEG is currently trading at an undemanding 16.7x FY23 P/E (33.2% lower than its pre-pandemic 5-year average of 25x). Technically, the hammer pattern formation on 17th June coupled with the oversold RSI indicate a potential rebound going forward. A successful breakout above RM0.90 will spur the prices toward RM0.92-0.96-1.00. Cut loss at RM0.79.
Collection range: RM0.80-0.83-0.86
Upside targets: RM0.90-0.95-0.99
Cut: RM0.79
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MYEG：一家优秀的电子服务提供商以及复苏股的代表
电子服务提供商。 MYEG 于 2005 年上市，是马来西亚领先的数字服务公司，为政府（特许权）和商业提供服务。这些服务包括促进政府服务的在线支付，例如车辆道路税的更新、外国工人许可证和数字健康旅行通行证系统。多年来，MYEG 一直受马来西亚政府委托，为 JPJ、JIM、KKM 等提供重要服务。除了马来西亚，MYEG 已将其业务扩展到菲律宾、印尼和孟加拉市场。
扩张仍在持续。尽管随着 Covid-19 SOP 的逐步取消（完全接种疫苗的游客不需要隔离或测试），MYEG 医疗保健部门的盈利贡献预计将逐渐减少，但我们相信 MYEG 的移民部门和公路运输部门将缓冲这一方面，这是因为MYEG被认为是重新开放边境的主要受益者, 特别是在大多数行业面临严重劳动力短缺的情况下，随着外国工人的回归，MYEG 移民部门的许可证更新服务可能会得到强劲的推动。这反映在该集团为外籍人工匹配服务高达 50,000 多人（相比疫情前每年只达 24,000 名员工）。
此外，随着自动驾驶测试和培训系统概念验证 (POC) 的开始，JPJ 电子测试系统正式推出(预计将带来约 5000-6000 万令吉的年收益)。另一方面，计划于 7 月推出的 Zetrix 区块链跨境贸易服务平台将允许 MYEG 通过对交易收取能源费，供应链追溯费用，以及跨境贸易的交易费，以将Zetrix货币化。
严重超卖。在年初至今暴跌 -20% 后，MYEG 目前的交易价格为 16.7 倍 FY23 市盈率（比疫情前 5 年平均 25 倍低 33.2%）。从技术上而言，6 月 17 日的锤子形态的形成加上RSI 处于超卖阶段表明可能出现反弹。股价若成功突破 RM0.90 将推动价格上涨至 RM0.92-0.96-1.00。投资者可把止损设置在RM0.79。
买入范围：RM0.80-0.83-0.86
上行目标：RM0.90-0.95-0.99
止损：RM0.79
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