KUALA LUMPUR (Dec 4): MyEG Services Bhd (MyEG) has secured a three-year extension for the e-government services it provides.
In a bourse filing today, the group said the Ministry of Transport (MoT) had granted the extension from May 23, 2020 to May 22, 2023.
It said the extension is in the best interest of the company, and expected to contribute positively to earnings and net assets per share of the company for the financial year ending Dec 31, 2020 (FY20) and thereafter.
“An agreement to formalise the extension will be signed and announced by the company in due course,” it said.
On May 23, 2000, MyEG entered into a concession agreement with the government for the electronic delivery of driver and vehicle registration, licensing and summons services, and utility bill payments (e-services) for a minimum tenure of 15 years.
On May 21, 2020, the group received an official notification from the government to continue with the provision of the e-government services until June 30, 2020.
At the noon break today, MyEG was 18 sen or 10.84% higher at RM1.84, valuing the group at RM6.25 billion. It was among the top gainers in the morning session today.
MyEG Services Bhd, which has inked a deal with China’s Anhui Zhifei Longcom Biopharmaceutical Co Ltd (Zhifei) to supply its vaccine, believes the government will also secure supplies from the private sector.
As for MyEG, Wong notes that the price of its vaccines will depend on volume, but it will still be competitive.
The company has been engaging with the Ministry of Health and relevant authorities on its planned distribution.
Under the deal with Zhifei, MyEG has the exclusive rights for the distribution of the vaccine in Malaysia for a three-year period.
Zhifei — a subsidiary of Chongqing Zhifei Biological Products Co Ltd, which is listed on the Shenzhen Stock Exchange — is one of five Chinese companies conducting Phase 3 clinical trials. Zhifei has enjoyed a 200% jump in its share price year to date.
MyEG’s share price surged to a high of RM2.19 on Dec 7 and has gained 80.9% year to date.
MyEG says it will complete local Phase 3 clinical trials under the supervision of Clinical Research Malaysia (CRM) to ensure that the vaccine is safe and meets the efficacy requirements for the country’s population of 33 million.
“We intend to strengthen the competencies of our team by bringing on board, where necessary, people with the right experience, expertise and skill sets along different stages of the journey.
“We are ready to start and are engaging CRM and a clinical research organisation to finalise the timeline.”
For My EG Services Bhd (MyEG), investors may have to ignore the noises and focus on contracts that it has in hand, which will be a reflection of its earnings potential.
Despite the evolving political landscape, many of MyEG's e-government contracts have been renewed. Not just that, the company has also been given new contracts, for instance to operate the MySafeTravel for the Ministry of Health, which is a digital health pass system for incoming travellers from abroad.
It also runs a portal to help companies arrange for the subsidised Covid-19 tests for staff, both local and foreign. The company has carried out roughly 200,00 Covid-19 test screenings since the service was launched at end-June 2020 until October 2020.
It also offers new services for the Road Transport Department, such as online renewal of motorcycle insurance, road tax and driver's licence.
MyEG also made headlines for acquiring a 10% stake in S5 Holdings Inc, which was a contender for the RM1.8 billion National Integrated Immigration System contract. Subsequently, shareholders of S5 decided to seek a backdoor listing through Ancom Logistics Bhd.
MyEG is seen to be a victim of the changing political landscape. That said, given that its existing contracts with government agencies have been renewed, and new jobs granted, the company could be a counter to look out for in 2021.
Issued PUC 100K. Volume abt 19M. After 4pm pushed up to 1.81 & after 4.30 pm pushed down to close @ 1.64. Within 30 minutes yndicate making tons of money. Retailers chased all are trapped. WTF. Bursa should issue UMA
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takeprofitlah
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Posted by takeprofitlah > 2020-12-02 22:43 | Report Abuse
will fly if break 1.80