Expanding service offerings for the Road Transport Department
MYEG is introducing new services for the Road Transport Department (RTD), namely: 1) online renewal of motorcycle road tax, and 2) online renewal of competent driving licences (CDL). The latest development is not a surprise, given that MyEG has mentioned that it is exploring new online services, leveraging on the government’s plan to accelerate consumer adoption of e-government services, especially with the ongoing Covid-19 pandemic;
Raising FY20-22F EPS by 6-8%
MyEG estimates that RTD processed about 10m motorcycle road tax renewals per annum. Assuming that MyEG captures 10-20% market share of users to take up its full bundle service — which includes online road tax renewal, insurance and delivery fee — at a potential RM30 ARPU, MyEG could fetch RM30m-60m revenue per annum. We raise our FY20-22F EPS by 6-8% to reflect earnings contribution from these new services.
Bigger monetisation potential from Covid-19 screening service
MyEG sees attractive monetisation prospects from its Covid-19 screening service, following the government’s new regulations requiring returning Malaysians and travellers from overseas to pay for their Covid-19 screenings since Jul 20. We understand that the fee for the polymerise chain reaction (PCR) test is set at RM150 for Malaysians and RM250 for foreigners. To recap, MyEG has conducted 150k Covid-19 test screenings, booked through its one-stop portal, since it was launched in early-Jun.
Reiterate Add with a higher RM1.96 TP, still based on 24x CY21F P/E, in line with its 5- year mean. Winning the Visa Luar Negara and National Integrated Immigration System (NIISe) contracts and higher-than-expected earnings contribution from its Covid-19 screening service could re-rate the stock
US Tech Stock strong.. Tech, meanwhile, pushed the broader market higher. Apple (NASDAQ:AAPL) and Microsoft (NASDAQ:MSFT) Alphabet (NASDAQ:GOOGL) Amazon.com (NASDAQ:AMZN) and Facebook (NASDAQ:FB), which together make up a quarter weighting of the S
The whole cabinet was having a meeting 2 days ago and one Minister was Covid19 positive. Now the whole cabinet is on 14 day quarantine. This type of news is not what the stock market want.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
rezzare
581 posts
Posted by rezzare > 2020-10-02 11:50 | Report Abuse
journey to nirwana? hoho