A)Fundamental Analysis (Price Vs EPS)     

                                                                                      Table A  Price (RM) Vs EPS (Sen)

                                                          Chart : Price (RM) vs EPS (Sen)

From the above chart, it is clearly seen that the price is coming down even though EPS increases. Is it logic?

Based on the Annual Report, Year 2019-2023 (Q4), some simple analysis is as follows:

1) Net Profit Margin: 52%

2) Return on equity > 15%, 27%

3)Debt-to-Equity<0.5, 0.2

4) Dividend Yield: 2.4%

5) Five Years of average PE around 19X

Estimated share price = EPS X PE

                                        =6.45 X 18  

                                        =RM1.16

Quoted from the CGSI research report on 5/4/24.

"We estimate that MyEG generated c.RM90m in total revenues (12% revenue mix) from its blockchain segment in FY23, with majority anchored by Zetrix token sales. Going into FY24F, we expect this to rise to RM143m, forming 18% of total revenue. Management also guided that Malaysia-China ZTrade (a blockchain-based cross-border customs trade solution) could go live in May 2024, coinciding with the 50th anniversary of Malaysia-China diplomatic relations"

The above shows that the business will continue to grow, especially with the possibility of going live in May 2024.

B)Technical Analysis 

                                                                          Myeg Monthly Chart

From the above chart, it is clearly seen that the Myeg monthly chart is forming a pennant. In my opinion, it is expected to breakout between April 24 and June 24. The technical target price is around RM1.16. (accidentally very close to FA value)

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Note : This is not a buy-or-sell call, just for knowledge sharing.