Analyst optimistic of MyEG overseas venture

PETALING JAYA: My E.G. Services Bhd’s (MyEG) first successful overseas venture is expected to be positive for the e-government services provider, as it could benefit from the anticipated rising revenue from the venture’s concessions, moving forward.

CIMB Research was optimistic of MyEG’s exploration of different markets via partnerships with local companies.

MyEG’s entry into the venture will be helpful for its Philippines-based partner to grow further, backed by MyEG’s infrastructure capacity to set up electronic government services.

The e-government services provider has inked a joint-venture agreement with I-Pay Commerce Ventures Inc (IPCVI) to provide electronic government services in the Philippines and other related services. This includes the provision of other services such as electronic payment in the Philippines.

The joint-venture comes with two ongoing concessions namely to provide services for the National Bureau of Investigation of Philippines and the Philippines Overseas Employment Agency.

“In our view, partnering with MyEG will help the companies reduce their startup costs considerably.

“With MyEG’s infrastructure support, we believe the revenues from these two concessions should pick up rapidly over the next few quarters,” said CIMB Research in its note, while adding that MyEG would invest US$2mil for its 40% stake in the new partnership.

The research house retained its “add” recommendation on MyEG and left the target price unaltered at RM3.14 per share. MYEG’s shares closed 1.1% up to RM1.84 at the close, with about 13.24 million shares done.