KUALA LUMPUR: UOB Kay Hian Malaysia Research has downgraded MY E.G. Services to Hold as the share price rallied 47% in the past month and increase its target price to RM1.27 as it rolls forward its valuation to 2019. Entry price: RM1.14.

It said on Friday while MYEG remains relevant as an indispensable enabler of e-government services that cuts down red tape and corruption, it requires government resolution to commence various earnings-accretive catalysts. 

The research house said while the pilot stage of e-bidding services for vehicle plates which was supposed to start on Aug 1 was delayed, the actual roll-out of the service was still targeted for January 2019.

Understandably, the pilot project will require MY EG’s  back-end operating system, hence increasing the possibility of MY EG becoming a beneficiary of e-bidding services when the Ministry of Transportation (MOT) announces the project winner later this year. 

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