MyEG (MYEG): Another Unfounded Accusation - Opportunity to Add?

My EG (MyEG): A Move to Become Regional Player

MYEG: Vaccine and Concession - Worries Unfounded

ASEAN (Indo) & China-focused. Ex-Deputy HoR UBS.

Johannes Salim, CFA

Equity Bottom-Up

<ul>
<li>Conference call with the IR of <a href="https://www.smartkarma.com/entities/19765" target="_blank" data-smartkarma-citation="entities:19765:1">My E.G. Services (MYEG MK)</a> reveals that business goes as usual despite a change in Malaysian government.</li>
<li>However, the company's growth is already adversely affected, with Jun 2018 Quarter posting only 2% sales growth YoY, from 23-25% YoY in Sep 2017 &amp; Dec 2017 Quarters and 32% YoY in FY17. </li>
<li>The big unknown is post May 2020 (when the e-government services concession would expire).</li>
<li>Valuation of 22.4x FY2019 PE (very close to 5-yr mean PE of 23.1x) does not appropriately reflect MYEG's risk premium due to the big unknown (post May 2020).</li>
</ul>


Conference call with the IR of My E.G. Services (MYEG MK) reveals that business goes as usual despite a change in Malaysian government.
However, the company's growth is already adversely affected, with Jun 2018 Quarter posting only 2% sales growth YoY, from 23-25% YoY in Sep 2017 &amp; Dec 2017 Quarters and 32% YoY in FY17. 
The big unknown is post May 2020 (when the e-government services concession would expire).
Valuation of 22.4x FY2019 PE (very close to 5-yr mean PE of 23.1x) does not appropriately reflect MYEG's risk premium due to the big unknown (post May 2020).


My EG Services: The Big Unknown Not in the Price