=MARKET BUZZ: Malaysia's My E.G. Services Recoups Early Losses; BIMB Keeps Buy
KUALA LUMPUR (May 17) -- My E.G. Services recoups some early losses, fell as much as 15.8% to MYR1.07, now down 6.3% at MYR1.19. Stock facing renewed selling pressure after floor price limit was lifted. Lower trading price was fixed at MYR1.27 yesterday after consecutive 2 sessions of limit down, due to government plan to abolish Goods and Services Tax (GST). BIMB Securities cuts target price to MYR2.60, but keeps Buy call on attractive valuation. "With the new government setting a more prudent policy undertone, we believe retaining MyEG’s services ensure processes remain efficient," says house in investor note; but cuts FY18-FY20 profit assumption by 12%-22% on lower fees structure. "We believe GST monitoring devices could be converted to monitor SST (Sales and Services Tax) collection," adds house. BIMB also expects another round of Foreign Worker Re-hiring Program within the first year of Pakatan Harapan's administration, to limit foreign worker population to 4 million through potential rehiring of another 2.3 million illegal foreign workers.
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