DRB Hicom is also a counter which is oversold now, can accumulate now at current great price. Catalysts for DRB:
I) Proton's first SUV is still on track to launch in 4Q18 will be immediate boost to proton business.

II) The research house also said PH's plans to reduce excise duties on imported cars below 1,600cc for first-time car buyers bodes well for consumers and could boost total industry volume.

III) No GST, more stable fuel price (due to government subsidy), and potential higher Rakyat income are also promoting Rakyat to buy cars.

Great points angwk!!

Yeah, instead of believing Rosmah scandal consequences against MYEG (which is unproven anyway), I rather believe PH government will take care EPF and KWAP (Rakyat's retirement fund) under MYEG, and continue providing efficient and less costly e-government services to Rakyat via MYEG.

Many investors are investing based on "alleged" political connection and political connection in recent 2 days and ignoring company fundamental. Making many stock prices increases and decreases at a very eye-popping rate. Many investors are either frantically chasing high or panic selling. Fake news is widespread and affecting investor's emotions. Avoid investing in this manner or we can expect many investors get their fingers burnt in the end of the day. Good luck.

During this period, we can link any politician to any company that received contract with ex-government and create unnecessary sell down. This political sentiment fear may not be valid and can easily be overdone.

EPF and KWAP is main shareholder in MYEG, If MYEG is damaged, Rakyat retirement fund will be at stake. I believe EPF and KWAP has voices their concern to PH government.

MYEG no need put its own cash to save market. Just prove its earning capability will do. MYEG has proved its ability to JV with Philippines to provide e-government service, it can also penetrate other countries like Thailand, Indonesia and become an international e-government service provider. This is an yet to be unlocked potential.

If MYEG lost its monopoly position, with current over 50% profit margin and complete infrastructure, MYEG can also easily compete with other competitors to continue winning/ continue contracts with government.

The alleged Zahid connection with MYEG makes people think there may be corruption happening in MYEG. Look at usual corrupted company, they will be managed by a Malay director but MYEG is helmed by a chinese CEO. Secondly, if MYEG is corrupted, why is it charged under Anti-competition act and some other acts at previous years and fines were imposed? So, I think MYEG doesn't warrant all these concerns.

The sell down is clearly overdone. I have already seeing those overbought shares starting to drop today and this oversold share could see rebound soon. 2/3 of market cap wiped out is cleared oversold for a strong fundamental company as MYEG.

Set aside sentiment. Lets look at fundamentals that can help MYEG recovery.

Recovery catalysts:
i) MYEG existing services like online road tax renewal for cars and online
foreign workers working permit renewal services should continue even with PH running the country. This is because there are not many alternative services currently for renewing road tax for cars as well as FWPR. MYEG services is still the most efficient and cost effective alternative unless PH government would like to increase Rakyat cost make it less efficient for Rakyat to do renewal. Doing so which will definitely invite criticism.

ii) MYEG has just successfully penetrated Philippine on year 2017 to provide e-government services to Philippine government. One of the major duty is to help tax collection for Philippine government. This can be a potential new major income source in future

iii) The GSTM project was earlier set up to monitor sales and service taxes
(SST) but was replaced by GST from Apr 2015 onwards. If PH replaces GST
with SST, the government could revert and use MyEG’s GSTM services to monitor SST
transactions.

iv) Current FWPR contract lasts until year 2020 and still provide consistent revenue for next 2 years. MYEG next quarterly report should provide very positive results and could provide sentiment booster.

T+3 day is approaching for quite a bit of investors

China to showcase MILITARY STRENGTH in support of Russia following Syria airstrikes
CHINA will conduct in a number of navy drills in a show of support for Russia following the US, UK and French airstrikes in Syria, it has been claimed as World War 3 fears grow.

https://www.express.co.uk/news/world/946252/world-war-3-china-military-strength-russia-trump-syria-airstrikes

Trade carefully. Good luck.

You got the points

MyEG's update:

Foreign Workers:
1. Malaysian Employers Federation estimates there are around two million IFWs in the country. MYEG has registered about 1 million IFW by year end 2017.
2. MyEG received RM100 for every IFW registered. In addition, it also gets commissions (RM60-70) per pax from insurance companies selling the compulsory foreign workers insurance.
3. In Sep 17, MyEG started a new service “matching” employers with IFWs. This service allows employers to source for new foreign workers and MyEG receives RM1,000 for
each IFW it matches with an employer. There will be about 50% net profit margin for the matching services

*Near Future Catalyst*

1. Successful nationwide launch of the GSTM Phase 2 which will bring 100% more recurring income to current revenue pool. Eventually there will be GSTM Phase 3, 4 and beyond to have whole country installed with the dongle. The amount of additional recurring income will be very impressive.

2. Remittance service. MYEG management is aggressively in talks with foreign currency licensees aiming to rake in greater transaction fees and forex spread. This business has big potential as the annual remittances from Malaysia via banks are worth about RM100 billion,

3. Upside surprise from the Philippine venture - It's first overseas venture. MyEG had inked a JV agreement with I-Pay Commerce Ventures Inc (IPCVI) to set up a JV corporation (JVC) for the purpose of engaging in the business of development and implementation of electronic government services projects in the Philippines. If MYEG can replicate its services in Philippine, MYEG can potentially boost it total revenue to multiple times. Don't forget, Philippine also implements GST-like tax. One day, GSTM may be replicated by MYEG in Philippine?

MYEG is stronger than ever, and current/future project can lift it up to a new level.

Target price 4.00 (conservatively)

Good time to buy

We should accumulate Sapura Energy now.

Current total bid on hand is at astonishing USD5 billions (multi-year high bid value)

Recent RM905 mil win of job just consists 5% of Sapura Energy total bid values. The current job wins offer up to 4.5 years of earning visibility.

Sapura Energy, being the Malaysia’s largest oil and gas service provider, has recently secured a full ownership of Sapura 3000 that will further enhance the group’s competitive positioning in the engineering and construction segment (meaning not only largest but also stronger player in O&G market). With better competitive advantage and better oil market/outlook, I believe Sapura Energy has much higher ability now to bag in new projects in 2018.

Imagine what is the potential for Sapura Energy if it wins the rest 95% of bidding. :)

Fundamental wise:
No debt pressure. 3.5 billions cash on hand (5 years highest level)

Technical wise:
RSI 32.9 (still at oversold level)

Latest Target Price:
CIMB: 1.49
Public Bank: 1.11
Consensus: 1.38 (86% upside!)
Almost all analyst/research firms are now giving "Buy" rating.

A very good stock to accumulate for short term buyer, long term buyer, valuation buyer, and also technical buyer.

It is just a temporary healthy price correction. No change to fundamental. Price correction is always a great entry point to accumulate more. Have been waiting for some time for this!

If you look at the past GE 2008 and GE2013, it has no single impact on MyEG. Thus, it is the least of my concerns.

We are focusing more on the capability of MyEG to deliver stable and good growth of revenue and profit.

During recent MyEG AGM:
"The problems of installation of GST Monitoring Project dongles at older cash registers (more than five years old) in F&B outlets in Klang Valley has been fully solved, and they are now testing the system to ensure everything runs smoothly."

The biggest hurdles has been solved, we shall see the income from GST Monitoring Project very soon.

Yeah, it is pretty obvious that Opposition is playing to Rakyat's tune by saying taking down GST. But it is obvious that it is a promise that cannot be fulfilled. You ask around for any financial analysts' advise, they will tell you the same that GST is impossible to be taken down because it is the lifeblood of Malaysia now. Unless you want Malaysia to bankrupt, then try take away the GST.

MyEG is a company with 50% plus profit margin, 30% and above consistent year to year growth in profit and revenue, and greater future prospect with GST Monitoring Project (projected to grow 200% and above). Current PE level of 40 is justifiable for such a great fundamental and high growth company like MyEG. If later 200% growth in revenue and profit kicks in, and PE still maintain at current 40 level, it still translates into a very sweet 60% growth from current share price. And I am expecting also when the real return from GST Monitoring Project finally materialized, the PE may even reach 50 or higher due to much greater sentiments. Just look at GDEX (experiencing great growth story), it is now at whopping PE 105.83!

MyEG's commercial solutions and services now make up 70% of the group’s business activities, so political influence is very limited. In fact, the political effect is the least of my concerns.Just look by yourself on MyEG share price history during GE 2008 and GE2013. In my observation, MyEG has already proved that it is not affected by the election at all in all past elections!! Kindly remember during GE2013, we almost experience political tsunami.

For those who's always skeptical about MyEG being too dependent on government, you should look at this news report. Always keep yourself updated and not always just listening to rumors around.

"It said that commercial solutions and services now make up 70% of the group’s business activities, thus no longer rendering it just a concession for various e-government applications."

Read more at

http://www.thestar.com.my/business/business-news/2017/02/13/myeg-diver...

Digitization business is experiencing huge exponential growth currently.

I am laughing for its current situation. Many investors are taking profits too soon.

Current MyEG revenue is about RM371 mil and its profit is RM201 mil, about 54% eye popping profit margin (how many companies are having 54% profit margin in the market?). Is that all on MyEG's plate?

Let's see what's on the plate for MyEG:

i) Increase registered foreign workers from 300k to 1 mil. MyEG is targeting to increase 3 times in their customer base. We expect MYEG to legalise up to 500,000 and 200,000 illegal workers in FY2017 and FY2018, translating into pre-tax profit (PBT) of RM41.3 million and RM16.5 million respectively.

ii) Accommodation services for foreign workers. MYEG is eyeing about 500 sites to accommodate about one million workers. We expect the accommodation services to bring in PBT of RM32.4 million and RM86.4 million in FY2018 and FY2019 respectively.

iii) Foreign Currency Licenses. “Management is in talks with foreign currency licensees, and would be able to rake in an undisclosed amount of transaction fees and forex spread, if the venture takes off. This business has big potential as the annual remittances from Malaysia via banks are worth about RM100 billion.

iv) My E.G. Services Bhd (MyEG) has been granted approval by Bank Negara Malaysia to issue electronic money via its iPayEasy e-wallet. The approval would enable MyEG Alternative to carry out activities in relation to the issuance of electronic money, which complements MyEG Services and its subsidiaries’ existing business activities. This will help to have faster business transaction, reduce the cost of management, and better control of business.


v) GSTM project. Phase 1 targets 50,000 F&B outlet & Phase 2 targets the retail sector, involving around 400,000 outlets nationwide.MyEG will be able to collect RM1,000 p.a. from each F&B and retail outlet. (50,000+400,000 outlets) x RM1,000 each, so there will be a total of RM450 million per annual additional income. Lets said 50% profit margin, the revenue will be about RM225 million.

Lets do the math:

By 2018:

Profit from foreign workers registration: 41.3m + 16.5m
Accomodation services for foreign workers: 32.4m + 86.4m
GstM Project: 225m
Return from Foreign Currency Licenses: ??

Current profit 201m + (41.3m + 16.5m + 32.4m + 86.4m) = 402.6m (which will transalte to 0.10 earning per share)

Lets take a very conservative PE of 35, so the share price can anytime be 3.50 (35 x 0.10) in 2 years!!
If take current PE of 40, the share price can be 4!!

So the upside can be about 67%++ per year from its current share price.

Is that all?

In this calculation, we havent calculated in the potential return from:
i) Phase 3 Phase 4 and beyond from GSTM. Eventually all businesses will be having GSTM
ii) The huge potential return from Foreign Currency Remittance business. No figure on hand now. But you can see look at how much is making huge profit from all those foreign currency conversion and remittance
iii) And high growth of Foreign Labors numbers from all the massive infrastuctures from One Belt One Road. Higher numbers of foreign labors will indirectly increase the return from other business streams.
iv) MyEG is also having digitization projects with many local businesses and foreign countries government (Philiphines). Digitization space is having higest growth among all industries currently.

Above all,

All these revenue steams are repetitive business.

In nutshell, great profit will always come to those who "knows" and "patience" and loss will come to those who is "ignorant" and "short sighted". Warren Buffet doesnt become world richest investor by being ignorant and short sighted.

With all these prospect, even the MD, Wong Thean Soon just acquired an additional 8.5 million shares very recently. A good sign indeed, I believe something greater is brewing.

Seems like losing steam already

CIMB Research Comment regards to BNM recent rate hike:

"We see the recent 25bp rate hike as negative for the total industry volume in 2018 given that it could affect consumer affordability, especially in the mass
market segment and lead to more stringent loan approvals by the banks."


"We think Proton and Perodua could be affected by this given their exposure to the mass market. In addition, the sector will also be impacted by expected higher interest cost given the high gearing level for most companies, except Bermaz."


"DRBHicom is likely to be the most impacted on absolute value of about RM12m from the 25bp hike in interest cost"

Dont provide wrong information, Boyue is not open for booking by Q1 2018. They are still in the mid of testing and conversion and not ready until at least Q4 of this year. Proton can only riding on Boyue on next year, and not this year. This year will still have quite a bit of jitters on car market and potential Proton quarterly losses resuming.

It seems too much selling pressure now. Dont paint the wrong picture

seems like not enough power already

Well said angwk

From what I am seeing, too many short term investors already currently. And at such overvalued price, I am really not comfortable.

The true value is not yet fully reflected on the share price, it should be way higher. We will see great show ahead. I agree with the TP 1.69 by Public Investment looking at the current project volumes on Sapura Energy's hand and also the much much higher oil price environment of 2018 that can bring even more projects in very near terms

Supershit O&G share of 2017, UMW Oil and Gas, has increased 10% today. Seeing is believing.

Sapura Energy fundamentals is much better than UMW OG. The turn will come. In fact, it is already coming, significant recovery since the start of 2018.

CIMB Research has upgraded the O&G sector to “overweight” from “neutral”, pointing to a more positive outlook on the local front in year 2018, based on Petronas’ activity outlook from 2018 to 2020

Bull for O&G sector is coming. Sentiment is currently very good for O&G sector. Look at all the share price of O&G related company starting of 2018, they are very good!

We can expect investors flow from overinflated shares like HengYuan & Petron to better bargain shares.

Sapura Energy has better bargain and should carry better margin of increment from its through level.

A light at the end of tunnel:

1.) Petronas has projected that there would be about 20 greenfield and 30 brownfield projects between 2018 to 2020 that has the potential for future oil projects.

2.) Tendering activities have been on the rise and oil majors are reviewing projects suggesting that they are relatively more upbeat on the upstream sector following the stabilization of oil prices. Sapura Energy's outstanding orderbook is currently valued at approximately RM15.1 billion, of which RM6 billion is to be recognised in the current and next financial years

3.) As no immediate lumpy loan repayments are needed and capital expenditure plans are already budgeted for, the group should be able to navigate through the currently-challenging environment. FYI, Sapura Energy is cash rich company.

4.) Any escalation of geopolitical tension would serve as a wildcard to lift oil prices one notch higher

5.) Sapura Energy is asia’s largest provider of O&G services by market capitalisation. The company was worth RM30bil then but is now reduced to a market capitalisation of RM4.25bil. An easier target for acquisition.

Upgraded to "Buy" by RHB Research

06-December-17: Goldman raises 2018 oil price forecast on robust OPEC commitment. Goldman lifted its Brent price forecast for next year to $62 a barrel and its WTI projection to $57.50 a barrel, about 9% Total Returns Forecast.

Under more stable oil environment of 2018, it will allow oil and gas related companies to grow/recover. More active bidding for new jobs can be expected in the market given the improved conditions.

Finally, OPEC extends output cuts through the end of 2018. That's the greatest news that we are waiting for, for oil and gas related counter. There will be a stable and higher oil price throughout year 2018.

Next in line:-

Global oil demand will continue to grow to 105 millions barrels a day by 2040, albeit at a slower pace. Demands by sectors like petrochemicals, trucks, aviation, and shipping will drive up oil demand, said Dr Fatih Birol, the IEA'S executive director.

There have been increasing risks in that region with Saudi Arabia, Iran and Qatar continuing to be at loggerheads with each other. Any war erupted between them could potentially send oil price to USD 70-80/b.

Good luck

Sapura Energy has:-
RM34.86 billion total asset (Cash level: RM2.23 billion)
RM22.26 billion total liability

Net asset per share (NTA): RM2.12

This is way more than current price level of RM1.30. Sapura Energy is now at 40% cheaper now vs its intrinsic value.

For earning side:-
I see dividend is given during March 2017 which is pretty much establishing its earning capability.

Pretty obvious, Sapura Energy no where near UMWOG.

Remember, when oil price was about USD35/b, Sapura Kencana's price was 1.44. It was year 2016, and that time, Sapura Kencana is having loss of profit of whopping 792 millions! We can say year 2016 was the worse year ever for Sapura Kencana due to extreme low oil price, extreme low new projects, and high maintenance cost that all ultimately lead to highest negative profits recorded in that year. In 2016, the lowest share price was 1.35.

Now, current oil price has increased 80% to about USD63/b already. In 2017, despite some jittery road, Sapura Energy is still having a profit 208 million up to date. We also see in 2017, Sapura Energy, being the Malaysia’s largest oil and gas service provider, has just secure a full ownership of Sapura 3000 that will further enhance the group’s competitive positioning in the engineering and construction segment (meaning not only largest but also stronger player in O&G market). With better competitive advantage and better oil market/outlook, Sapura Energy has bagged in many new projects which is not awarded to others, notably:

15 Nov: RM1.47 bil
Jan - July: RM 6.3 bil (several huge projects)

And moving forward:-

Sapura Energy is still bidding for projects worth $8.1bn and has an order book of MYR15.1bn ($3.6bn). Key among the new jobs to be bidded for would be the anticipated MYR6bn worth of maintenance, construction and modification contracts to be offered in phases soon by Petronas. Being the largest and stronger player, Sapura Energy has been perceived positively by analyst in winning these projects in near future.

Oil outlook is looking better as well:-

i) Global oil demand will continue to grow to 105 millions barrels a day by 2040, albeit at a slower pace. Demands by sectors like petrochemicals, trucks, aviation, and shipping will drive up oil demand, said Dr Fatih Birol, the IEA'S executive director.

ii) OPEC, together with a number of non-OPEC producers led by Russia, has been restraining output this year in an effort to end a global supply overhang and prop up prices. Traders looked to the Vienna meeting next week at which major crude exporters are expected to extend production cuts

iii) Tensions between rivals Saudi Arabia and Iran are at all-time highs now, any war erupted between them could send oil price to USD 70-80/b.

“Without his (Mokhzani’s) disposal, fundamentally, the share price should be higher,” says AmInvestment analyst Alex Goh.

So the recent drop in sales price is merely a herd mentality. Investors who able to look at the real fundamental value of stock will stand a better chance of winning.

That's no doubt why:-
Hong Leong Investment Bank Bhd (HLIB) maintained a “hold” rating and target price of RM1.56

AmInvestment Bank (AmInvest) also maintained a “hold” rating on the stock with unchanged forecasts and fair value of RM1.72.

TA Securities upgrades Sapura Energy to Buy from Sell, keeps MYR1.66 target price

Even foreign analysts:-
Have consensus target price of up to 2.15 (Bloomberg)

Sentiment is temporary. See through it lies great opportunity, profit is gain by sailing trough market inefficiencies.

Good luck

By 15-November-2017:

TA Securities upgrades Sapura Energy to Buy from Sell, keeps MYR1.66 target price

That's 20%-30% upside potential already from current level. :)

By 15-November-2017:
Hong Leong Investment Bank Bhd (HLIB) maintained a “hold” rating and target price of RM1.56

AmInvestment Bank (AmInvest) also maintained a “hold” rating on the stock with unchanged forecasts and fair value of RM1.72.

Wao, you can almost earn arbitrage gain already at current price. Oil price is almost 2 years high now.

For those who's always skeptical about MyEG being too dependent on government, you should look at this news report. Always keep yourself updated and not always just listening to rumors around.

"It said that commercial solutions and services now make up 70% of the group’s business activities, thus no longer rendering it just a concession for various e-government applications."

Read more at

http://www.thestar.com.my/business/business-news/2017/02/13/myeg-diversifies-portfolio/#pTShb2VjmK12rGZV.99

Digitization is huge growing business field nowadays. Many traditional businesses cannot afford not to embrace digitization on their businesses these days.

Very Impressive quarterly performance for MyEG, bravo!!!

Both reported Profit growth (16.7%) and Revenue growth (20.3%) growth is even better than previous quarter (previous quarter profit growth is 13.19% and revenue growth is 11.91%)! Profit margin still at impressive 53%, how many companies out there are having double digit consistent growth on quarterly basis while having 53% profit margin at the same time? Shareholder's equity is also having steady growth as expected.

MyEG is marching even stronger from now on with projects below:

i) Increase registered foreign workers from 300k to 1 mil. MyEG is targeting to increase 3 times in their customer base. We expect MYEG to legalise up to 500,000 and 200,000 illegal workers in FY2017 and FY2018, translating into pre-tax profit (PBT) of RM41.3 million and RM16.5 million respectively.

ii) Accommodation services for foreign workers. MYEG is eyeing about 500 sites to accommodate about one million workers. We expect the accommodation services to bring in PBT of RM32.4 million and RM86.4 million in FY2018 and FY2019 respectively.

iii) Foreign Currency Licenses. “Management is in talks with foreign currency licensees, and would be able to rake in an undisclosed amount of transaction fees and forex spread, if the venture takes off. This business has big potential as the annual remittances from Malaysia via banks are worth about RM100 billion.

iv) GSTM project. Phase 1 targets 50,000 F&B outlet & Phase 2 targets the retail sector, involving around 400,000 outlets nationwide.MyEG will be able to collect RM1,000 p.a. from each F&B and retail outlet. (50,000+400,000 outlets) x RM1,000 each, so there will be a total of RM450 million per annual additional income. Lets said 50% profit margin, the revenue will be about RM225 million.

MyEG revenue and profit higher

PETALING JAYA: My EG Services Bhd’s (MyEG) net profit for the fourth quarter rose 16.7% to RM59.48mil while revenue jumped 20.3% to RM105.1mil.

The e-government services provider’s higher earnings and revenue were attributed to higher transaction volume from the online renewal of foreign workers’ permits (FWP), foreign workers rehiring programme services (FWR Services) and foreign workers’ insurance from both FWP and FWR Services.

The group also saw an increase in revenue contribution from its motor vehicle trading-related services for the quarter ended June 30, 2017.

In its filing with the stock exchange, My EG Services said this, however, was offset by higher personnel-related expenses and operating expenses to support the growth in FWP and FWR Services, higher marketing and sponsorship expenses and higher interest cost from the term loan to finance its newly acquired offices, among others.

For the full year, the group’s net profit soared by 41% while revenue for the period came in at RM371.6mil, 31.9% higher than a year ago.

The board has recommended a final dividend of 1.2 sen per ordinary share for the full year.

Read more at http://www.thestar.com.my/business/business-news/2017/08/30/myeg-revenue-and-profit-higher/#LIO1FtrzbcAhxg1X.99

Guys, Supermax just hit the same very oversold level as last May...Last May, once it hit the very oversold level, it went from 1.90 to and all the way 2.11. Based on this history trend, it is good to accumulate now and wait for the great price reversal to happen for the great profit. It is there already NOW.

Starting seeing buyers are coming back.

Let's accumulate more now and aim for 3.34 or 4.18 price under several massive projects like higher foreign labor base, accomodation services, foreign currency licenses, GST Monitoring Project, Malaysia Digital Free Trade Zone, digitalization project with foreign countries.

Yes, it is currently sold down by many call warrants which is expiring soon (unfortunate for these guys who just want quick money instead of investing longer term). Myeg's fundamental is solid as ever and in fact growing even more solid now. The share price will be reaching AT LEAST RM3-4 (consevatively) because of higher foreign labor base, accomodation services, foreign currency licenses, GST Monitoring Project, Malaysia Digital Free Trade Zone, digitalization project with foreign countries.

What I like about all these business stream is they are not only growing fast, they are also repeat business. No doubt, MyEG has still been voted for consecutive 3 years as "Asia's 'Best Under A Billion' by Forbes.

So no better time than now to start accumulating more MyEG shares.

I am laughing for its current situation. Many investors are taking profits too soon.

Current MyEG revenue is about RM423 mil and its profit is RM226 mil, about 53% eye popping profit margin (how many companies are having 53% profit margin in the market?). Is that all on MyEG's plate?

Let's see what's on the plate for MyEG:

i) Increase registered foreign workers from 300k to 1 mil. MyEG is targeting to increase 3 times in their customer base. We expect MYEG to legalise up to 500,000 and 200,000 illegal workers in FY2017 and FY2018, translating into pre-tax profit (PBT) of RM41.3 million and RM16.5 million respectively.

ii) Accommodation services for foreign workers. MYEG is eyeing about 500 sites to accommodate about one million workers. We expect the accommodation services to bring in PBT of RM32.4 million and RM86.4 million in FY2018 and FY2019 respectively.

iii) Foreign Currency Licenses. “Management is in talks with foreign currency licensees, and would be able to rake in an undisclosed amount of transaction fees and forex spread, if the venture takes off. This business has big potential as the annual remittances from Malaysia via banks are worth about RM100 billion.

iv) GSTM project. Phase 1 targets 50,000 F&B outlet & Phase 2 targets the retail sector, involving around 400,000 outlets nationwide.MyEG will be able to collect RM1,000 p.a. from each F&B and retail outlet. (50,000+400,000 outlets) x RM1,000 each, so there will be a total of RM450 million per annual additional income. Lets said 50% profit margin, the revenue will be about RM225 million.

Lets do the math:

By 2018:

Profit from foreign workers registration: 41.3m + 16.5m
Accomodation services for foreign workers: 32.4m + 86.4m
GstM Project: 225m
Return from Foreign Currency Licenses: ??

Current profit 226m + (41.3m + 16.5m + 32.4m + 86.4m) = 402.6m (which will transalte to 0.11 earning per share)

Lets take a conservative PE of 30, so the share price can anytime be 3.34 (30 x 0.11) in 2 years!!
If take current PE of 38, the share price can be 4.18!!

So the upside can be about 20%++ per year from its current share price.

Is that all?

In this calculation, we havent calculated in the potential return from:
i) Phase 3 Phase 4 and beyond from GSTM. Eventually all businesses will be having GSTM
ii) The huge potential return from Foreign Currency Remittance business. No figure on hand now. But you can see look at how much is making huge profit from all those foreign currency conversion and remittance
iii) And high growth of Foreign Labors numbers from all the massive infrastuctures from One Belt One Road. Higher numbers of foreign labors will indirectly increase the return from other business streams.
iv) MyEG is also having digitization projects with many local businesses and foreign countries government (Philiphines). Digitization space is having higest growth among all industries currently.

Above all,

All these revenue steams are repetitive business.

In nutshell, great profit will always come to those who "knows" and "patience" and loss will come to those who is "ignorant" and "short sighted". Warren Buffet doesnt become world richest investor by being ignorant and short sighted.

That's typical short term mindset. And once MyEG's revenue boost is materialized later in near future only everybody rushing to buy the stock at higher and higher price...that's the typical investors in the market. That's why most investors are not really making much money and losing money.

This is no brainer. Once GST monitoring system (GSTM) project is rolled out, you will see the results because MyEG will gain 2x of revenue boost. We are also waiting for the potential result boost from its joint venture to set up electronic government services to Philippines. It is either you grab the opportunity now or miss the boat. It is up to investors.

GST monitoring system (GSTM) project update:-

GSTM project phase 1 will be rolled out nationwide at end-Jun 2017. Very near already!

Phase 1 targets 50,000 F&B outlets.

Phase 2 targets the retail sector, involving around 400,000 outlets nationwide.

MyEG will be able to collect RM1,000 p.a. from each F&B and retail outlet. (50,000+400,000 outlets) x RM1,000 each, so there will be a total of RM450 million per annual additional income! MyEG 2016 revenue is only RM281 million, thus RM450 millions per annual additional income will be a huge boost to MyEG revenue base!

We haven't calculate the potential revenues from Phase 3, Phase 4 implementation...

GST monitoring system (GSTM) project will make MyEG a big cash cow company. :)