KUALA LUMPUR (July 10): Digital services company MyEG Services Bhd’s share price closed at an eight-day high of 75.5 sen on Monday (July 10), after the government agreed to extend the company's concession as the online services provider for the Immigration Department.

Shares in MyEG traded between 74.5 sen and 78 sen each on Monday, the highest since it closed at 80 sen on June 27. 

The Covid-19 pandemic, and the unprecedented social and economic costs it has inflicted, provides an important opportunity to scrutinise the interplay between urban development and the economic resilience of small and medium enterprises (SMEs) in the urban market.

The counter was the second-most active stock on the local exchange, with 94.6 million shares changing hands on Monday.

MyEG closed at 71.5 sen last Friday, its lowest since March 28. The stock was on a downtrend since June 22.

Last Friday, MyEG also announced that the government had appointed the group as the collection agent for government revenue, based on a notification letter dated July 4 from the Ministry of Finance. 

“The terms of the extension will be finalised pursuant to further discussion with the government in due course, and an agreement to formalise the extension will be signed at a later stage,” MyEG said.

"At this point in time, the board does not foresee any risks in relation to the extension. The board wishes to express its heartfelt gratitude to the government for the extension," it added.

Previously, MyEG secured a three-year extension in 2020 extending its immigration services concession from May 22, 2020 to May 22, 2023 - with an estimated total value of RM208 million.

On Monday, two research firms made a “buy” call on MyEG’s stock. According to Bloomberg’s poll of analysts, Maybank Investment Banking Group set a target price of RM1.14, while UOB Kay Hian (Equity) set it at RM1.18. 

Asia Internet Holdings Sdn Bhd is MyEG’s largest shareholder with 1.21 billion shares or a 16.38% stake, followed by MyEG group managing director and co-founder Wong Thean Soon with 867.2 million shares (11.71%).

Two other major shareholders are Kumpulan Wang Persaraan Diperbadankan (KWAP) holding a 7.46% stake, and CIMB Group Holdings Bhd holding 6.63%. 

https://www.theedgemarkets.com/node/674247