KUALA LUMPUR: My E.G. Services Bhd (MyEG) shares inched higher in early trade Tuesday, helped by strong earnings in the second quarter ended June 30 (2Q21).

       The counter, one of the top gainers on Bursa Malaysia, rose 3.24%, or six sen to RM1.91 at 9.10am.

       MyEG’s net profit rose about 28% to RM80.68mil in the second quarter ended June 30 from RM63.06mil last year.

       Its revenue surged 30% to RM161.73mil from RM124.34mil a year ago.

       MyEG has proposed a first interim dividend of 0.25 sen per share.

       In the first half to June 30 (1H21), MyEG posted a net profit of RM156.96mil on revenue of RM333.19mil.

       MIDF Research said MyEG’s 1HFY21 earnings came in within the house and consensus expectations, accounting for 49.6% and 48.8% of FY21 earnings estimates respectively.

       “Despite earnings came in within expectations, we raise our revenue and earnings forecast for FY21/22/FY23F by +11.0%/+8.0%/+7.0% and +36.7%/+23.7%/10.4% respectively in anticipation that the relaxation of restrictions and the reopening of the economy will allow more pick up in motorcycle road tax and other new road transport services,” it said.

       “We believe its bread butter businesses could cushion its earnings once revenue from its healthcare segment taper off in 2023,” it added.

       MIDF has upgraded MyEG with a “buy” call and higher target price of RM2.16 from RM2 previously.