CLSA maintains BUY rating , with a higher target price of RM2.00 (previously RM1.75).
MYEG will be providing an online payment system for inbound travellers. This provides upselling opportunities for its Covid-19 testing business, while introducing new revenue streams in the form of hotel commissions (for quarantine) and meet and greet services. Thus, we raise our 20CL and 21CL earnings by 11% and 14%. While these requirements may be short-term in nature, the same platform can be utilised to deploy VLN (e-visa) services when borders reopen, which could raise our 21CL earnings by 8%.
Online payment system for inbound travellers . The group received a letter of acceptance from the Ministry of Health to provide an online payment system for inbound travellers to register and make payments for Covid-19 screening tests and quarantine charges. The tenure of the project will be two years, effective from 1 November 2020. Upselling opportunities for Covid-19 testing and hotel commissions
We estimate this new business to contribute RM12m in monthly net profit. This assumes 3k daily inbound travellers, an RM150 testing fee with two applications (once upon entry and once before leaving) and a 20% net margin. On top of this, we assume hotel commission fees (for quarantine) of 3%, a take-up rate of 50% (the alternative is government centres) and room-rates of RM250 per night (for 14 days). There is also an optional meet and greet service for RM800, with a target take-up rate of 5%.
Raise earnings 11%-14%, but assumptions subject to change in requirements.
Positively, while these requirements may be deemed short term, the same platform can be utilised to deploy VLN (e-visa) services when borders reopen, which could raise our 21CL earnings 8%.
We retain our BUY on the stock with a higher target price of RM2.00 (from RM1.75). This is based on an unchanged target PE multiple of 24.5x and 21CL EPS.
calvintaneng Thanks for sifu advice. I have sold 50% of my holding since yesterday & this morning. Honestly I was trapped many times since MCO. One day you see volume & the next few days the volume gone...I suspect it is played & controlled by 1 person... This laggard with slightly over 100M shares can be easily manipulated..... like this morning trading volume more than 5M is 5% of its PUC
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....
DreamCustodian
1,170 posts
Posted by DreamCustodian > 2020-10-10 07:41 | Report Abuse
Waah!!!