$MYEG (0138.MY)$ has reported strong financial results for 2QFY24, showcasing a 47.2% year-on-year increase in earnings to RM156.0 million. This performance has propelled the group's 1HFY24 earnings to RM321.4 million, reflecting a 47.8% rise year-on-year and positioning it at the higher end of both internal and consensus expectations.

Analysts atMIDF have maintained a BUY recommendation on MYEG with an unchanged target price of RM1.38. The positive outlook is supported by the continued expansion of the Zetrix blockchain platform, which has been a significant driver of growth. The anticipated return on shares is +52.5%, with a projected dividend yield of +2.9%, leading to a total expected return of +55.4%. Analysts foresee further earnings growth as new blockchain services, such as ZCert and Digital ID registrations, continue to enhance MYEG's revenue.

The strong financial results for 2QFY24 included a notable 48.3% year-on-year increase in earnings to RM165.4 million, bolstered by a 34.5% rise in revenue to RM242.3 million. Zetrix's contribution has become more substantial, now accounting for approximately 28% of total revenue, up from 14% previously. The expanded profit margin of 68.3% reflects the successful integration of Zetrix's offerings.

MYEG's performance for the first half of FY24 exceeded forecasts, making up 54.8% and 54.4% of the full-year projections, respectively. The company has made slight adjustments to its earnings estimates for FY24 to FY26, with minimal increases of 0.4% to 2.0%, while keeping revenue estimates unchanged.

Additionally, MYEG has declared an interim dividend of 0.25 sen per share, consistent with the previous year's second quarter. The group's continued focus on expanding its blockchain services and stable e-government offerings underpins its strong growth trajectory.