KUALA LUMPUR: MIDF research is optimistic on MY E.G Services Bhd's (MyEG) prospects, keeping its buy call on the company, as nine months results came in at the higher end of its expectations.
The firm said MyEG's higher earnings for the nine month period of RM337.5 million, made up 80.4 per cent of its full year earnings estimates for financial year 2023.
"We are making no changes to our earnings estimates at this juncture. Our target price is also maintained at RM0.97," it said.
MIDF Research sees little interruption to MyEG's revenue generation capability, having received the extension from Road Transport Deparment of Malaysia for a period of three years as well as the Immigration Department contract extensions, for a period of two years.
It expects MyEG's blockchain unit Zetrix, to drive the group's next phase of earnings growth.
With further earnings upside in view of the upcoming launch of the cross-border trade facilitation services.