By Ying Xian Wong
My E.G. Services’ shares rose early Tuesday after robust second-quarter earnings.
Shares of the digital-services company jumped 5.1% to 0.83 ringgit , bringing its 12-month gains to 6.7%.
My E.G. Services said late Monday that its second-quarter net profit was 111.6 million ringgit ($24 million), compared with MYR88.6 million a year earlier, mainly driven by higher revenue, contribution from newly launched services at its Zetrix blockchain platform and sale of Zetrix tokens. Quarterly revenue rose 14% on year to MYR184.9 million.
Maybank Investment Bank raises its target price for My E.G. to MYR1.16 from MYR1.14 and keeps its buy rating. It raises its 2023 and 2024 earnings estimates by 6% and 2%, respectively on a better earnings outlook.
My E.G.’s Zetrix token sales could improve further in the second half of this year, following their scheduled listing next month on Singapore-based crypto exchange Coinstore, Maybank analysts Anand Pathmakanthan and Arvind Jayaratnam said in a note.
With the collaboration among Zetrix, China’s national blockchain platform Xing Huo, and the Philippines’ Bureau of Customs to facilitate cross-border trades among these countries, analysts expect My E.G.’s decentralized finance segment could drive its growth in 2023-2024, and raises the segment’s revenue contribution to 10% and 17%, respectively, from 8% and 15% previously.
Write to Ying Xian Wong at [email protected]
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