Wednesday August 29, 2007
Online services set to boost MYEG earnings
By SURAJ RAJ
PETALING JAYA: The introduction of new services such as online road tax renewal, coupled with increased acceptance of online driver's licence renewal, is expected to boost My E.G. Services Bhd's (MYEG) earnings, going forward.
“We expect strong earnings growth of 156% and 40% for financial years 2008 and 2009 respectively, driven by the introduction of new services and wider usage of its online services,” Kenanga Investment Research said in a note.
For the year ended June 30 (FY07), MYEG's revenue and net profit surged 32.1% and 75.7% to RM25.5mil and RM7.1mil respectively.
Kenanga attributed the company's FY07 performance to strong take-up of its online services for learner's licence application, highway code test and payment of traffic offences.
The brokerage said the company's online road tax renewal service, to be launched by year-end, should achieve greater acceptance due to the yearly renewal requirement for road tax compared with driver's licences, which could be renewed for one to five years.