MY E.G. SERVICES BHD

KLSE (MYR): MYEG (0138)

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Last Price

0.785

Today's Change

0.00 (0.00%)

Day's Change

0.77 - 0.79

Trading Volume

42,441,900

Market Buzz
Discussions
58 people like this. Showing 50 of 57,791 comments

amet2017

His proxy la. Damn cunning. Top 5 volume for so many days but price still about the same. Other counter already fly from yesterday us market news.

1 week ago

CurryBento

S5H is a 20%-owned investment of MyEG Capital Sdn Bhd (“MCSD”), a wholly owned subsidiary of MYEG.

On the other hand, S5H wholly owns its operating unit, S5 Systems Sdn Bhd (“S5”).

MYEG has invested in total RM176.5m, with the last valuation at RM865m in Dec 2021 (the first valuation of 10% was at RM900m valuation in June 2020).

Both acquisitions were not subject to Bursa Securities and shareholders’ approvals as they did not trigger the pre-determined percentage ratio of the Main Market Listing Requirements of Bursa Securities.

It was stated MYEG intends to leverage the relationship with S5H to achieve greater synergies and mutual benefits and expand the company’s footprint in Malaysia as well as strengthen its position as an e-government services provider.

It was disclosed via an article by The Edge dated 23 March 2021, the shareholders of S5H at that point of time were Syed Mohammad Hafiz (76.38%), MCSD (10%), Merrington Assets Ltd (10%) and Avocat Sdn Bhd (3.62%).

It was not made known the actual reason for the acquisition as MYEG typically into organic growth by expanding into new products, services, customers and verticals i.e. health-tech services, blockchain initiatives, global presence and partnership etc.

Interestingly, it has entered a niche e-commerce space via an online platform “Nak Beli” specifically to sell groceries, fresh and frozen food.

Hence, the acquisition of S5H by MYEG was a peculiar one as it does not add value to its current businesses nor strengthen its footprint in Malaysia and giving the Group greater synergies with S5H.

Its strength does not lie in its M&A prowess but its internal expertise and capability to build, operate and own platform and to offer various services from government agencies (i.e. PDRM, JPJ, JIM, JPN etc.) to Malaysian citizens and businesses. Hence, this acquisition indeed raised a red flag.

1 week ago

CurryBento

All in all, many shareholders and investors of MYEG want to know the rationale of sizeable acquisition as the acquisition of S5H stake piqued a lot of interest. Over the years, the Group has proved itself that it has been able to overcome perception not only having its existing contracts renewed but getting new contracts in Southeast Asia and Southern Asia. Overall, the Group growth story remained compelling, robust and unique driven by its entrepreneurial founder. One thing that haven’t been proved, is its prowess in M&A activities.

The more concerning area is its investment in S5H. Why opt for a backdoor listing instead of direct listing? Unless S5 does not meet the earnings track record for direct listing. What were the reason for deteriorating financials and cashflow of S5 or because of the expiry of contracts or contracts reaching tail end with JIM. If this is the case, is the RM865-900m valuation paid by MYEG reasonable? Notably, S5 has its fair share of other issues including the expiry of contracts or at the tail end, declining financials, legal tussles, resignation of its CEO, timely lodgment of audited accounts etc.

If the valuation for 20% stake in S5H is not justifiable due its issues, is there a plan for MYEG to resell its stake via trade sale or exercise its put option to the vendors of S5H. This is something that MYEG needs to consider avoiding any future write-off or impairment exercise, if any. In a nutshell, price and value aren't always the same same. Don't pay too much especially in a deal that not everyone can understand. This is something that the Company needs to explain to the shareholders.

Happy investing and stay safe :)

1 week ago

Jerichomy

This is the one causing share price to go down


CurryBento
All in all, many shareholders and investors of MYEG want to know the rationale of sizeable acquisition as the acquisition of S5H stake piqued a lot of interest. Over the years, the Group has proved itself that it has been able to overcome perception not only having its existing contracts renewed but getting new contracts in Southeast Asia and Southern Asia. Overall, the Group growth story remained compelling, robust and unique driven by its entrepreneurial founder. One thing that haven’t been proved, is its prowess in M&A activities.

The more concerning area is its investment in S5H. Why opt for a backdoor listing instead of direct listing? Unless S5 does not meet the earnings track record for direct listing. What were the reason for deteriorating financials and cashflow of S5 or because of the expiry of contracts or contracts reaching tail end with JIM. If this is the case, is the RM865-900m valuation paid by MYEG reasonable? Notably, S5 has its fair share of other issues including the expiry of contracts or at the tail end, declining financials, legal tussles, resignation of its CEO, timely lodgment of audited accounts etc.

If the valuation for 20% stake in S5H is not justifiable due its issues, is there a plan for MYEG to resell its stake via trade sale or exercise its put option to the vendors of S5H. This is something that MYEG needs to consider avoiding any future write-off or impairment exercise, if any. In a nutshell, price and value aren't always the same same. Don't pay too much especially in a deal that not everyone can understand. This is something that the Company needs to explain to the shareholders.

Happy investing and stay safe :)
1 hour ago

1 week ago

PenditaAlam

Post removed.Why?

1 week ago

HaroldHuong

Can maintain above 0.760??

1 week ago

BarrettTeo

@ HaroldHuong Only GOD know. But this counter is really good for trading practice in my opinion

1 week ago

hornbill

Kakak & Abang can coming.

1 week ago

damiel92

renew road tax myeg

1 week ago

damiel92

renew insurance myeg

1 week ago

damiel92

renew labor permit myeg

1 week ago

damiel92

everything you can do in myeg

1 week ago

BarrettTeo

Nice. Go go go and see u at 80 cents again

1 week ago

LcKevinLee

以新加坡为基地的加密货币交易所Zipmex,向新加坡法庭申请破产保护。

加密货币,MYGG加油,勇气可嘉

1 week ago

BreakingNews

Buy

1 week ago

wlun6631

Whales are collecting silently, the more you sell the more they collect. And they resell you at RM1+ again :D

1 week ago

lalazai9

Election coming BN win myeg fly

1 week ago

BarrettTeo

Very good. 80 cents up up and above

1 week ago

amet2017

Scam counter. Haha.. Damn this syndicate.

6 days ago

BarrettTeo

It's OK as long as your margin of safety is high. This counter provide good training for trading. Hehe

5 days ago

Dragon88

Time to buy, now or never

5 days ago

BarrettTeo

SP is 80 cents. Go go go

5 days ago

wlun6631

I love all time low, let me collect more :D ~ I'm waiting downstairs

4 days ago

amet2017

Looks like syndicate is buying and selling from right to left. Luring bilis to come in.

4 days ago

wlun6631

Where's the haters, please sell me all your tickets I need more. I'm perfectly fine even the price goes down to RM0.70~RM0.74

4 days ago

troy88

sharks finished collecting?

4 days ago

BarrettTeo

Nice la. Up up up

4 days ago

HaroldHuong

Up to 80cts, can maintain is priority

4 days ago

stockraider

Steady collection loh!

4 days ago

KooSan

Big sharks playing in the battlefield. Ikan bilis can only share some fun.

3 days ago

mf

Fed rate hikes expected to become more aggressive after strong jobs report
PUBLISHED FRI, AUG 5 202211:22 AM EDTUPDATED FRI, AUG 5 20221:06 PM EDT
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2 days ago

Throwdown

Myeg needs heavy artilerry to break 0.805. 805 is bad ass number

1 day ago

wlun6631

Come down come down, let me collect more (after election boom)

1 day ago

StartOfTheBull

This stock can buy now or not?

1 day ago

StartOfTheBull

Still very strong support at 78.5c.

1 day ago

Throwdown

Myeg needs photoshop right now. She is an ugly biyotch

1 day ago

stockraider

Go for it loh!

Can buy mah!

23 hours ago

Jerichomy


wlun6631
Where's the haters, please sell me all your tickets I need more. I'm perfectly fine even the price goes down to RM0.70~RM0.74
3 days ago

23 hours ago

Jerichomy

Wwlun6631 is a stopid and holanddd shark hahaah

Jerichomy

wlun6631
Where's the haters, please sell me all your tickets I need more. I'm perfectly fine even the price goes down to RM0.70~RM0.74
3 days ago
37 seconds ago

23 hours ago

Gem Man

myeg benefit from agmo listing?

23 hours ago

wlun6631

Jerichomy

What's make you so tension, I'm still queue-ing to collect more LOL
Not letting go until RM1+

22 hours ago

Jerichomy

Wow shark…like otb and pak tua

22 hours ago

wlun6631

Don't be over emotional when come to stocks, little up and down wanna penalize someone else. Yikes..
Just be responsible for own decision & own money, don't be too salty <3
Just sharing opinions here, for me current price is still reasonable and collectable.
Sifu Jericho, you jealous?

22 hours ago

Jerichomy

I am so well known…takut saya

22 hours ago

Jerichomy

Of course it is better than dsonic anytime looo

22 hours ago

BarrettTeo

Very good very good. Trading activities continue

21 hours ago

Gogoklse

Good for market trade

4 hours ago

BarrettTeo

See if can catch the rebound signal again

3 hours ago

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