MYEG ... Dec12

It is poised to see acceleration of earnings in the medium term, spurred by the introduction of new Road Transport Department and Immigration Department services. In the longer term, the customs tax monitoring service will be the wildcard.

Its existing portfolio of service continues to grow, although growth rates will inevitably slow as they near market share saturation levels.

The company’s services are seeing increasing market share and customer acceptance. The underlying market for its range of services is large, with recurring demand supported by the group popularity of online services.

Despite substantial capex in the customs monitoring and other new planned services, MYEG’s balance sheet remains strong. Its net cash position improved to rm6.1 million as at end Sept 2012. Amounts from its associate company has been rising to rm20.4 million as at end Sept 2012.

It is set to spend up to rm60 million for the financial ended June 30 2013 to roll its two new services, the online tax monitoring system and expansion of its online foreign worker permit renewal services.

Its online tax monitoring system has already been completed and its targeted to launch by first quarter of 2013.

Also in the group’s 2013 pipeline is the expansion of its existing online foreign worker permit renewal services. The existing services currently (Dec 2012) only caters to the work permit renewals for foreign maids by MYEG is also looking to expand its services to other sectors as well.

MyEG is mainly involved in the development and implementation of E Government services to 12 government agencies including the JPJ.