My EG Services (MYEG) has expanded its blockchain platform ZTrade's coverage to include verification services for China-issued Certificates of Origin (COOs), enhancing its monetisation avenues, according to a report by Maybank Investment Bank (Maybank) on July 17, Wednesday. The introduction of COO verification services positions MYEG favourably in capturing growth opportunities in Malaysia-China trade relations, enhancing its competitive edge in the blockchain segment. Maybank's TP of MYR1.68 reflects a positive outlook for MYEG amidst its innovative ventures and solid market position in Malaysia's digital economy.

Maybank maintains its BUY rating for MYEG, reiterating confidence in the company's strategic initiatives and revenue potential from ZTrade's expanded capabilities. Maybank maintains its earnings forecasts for FY24-26E and a target price (TP) of MYR1.68, underpinned by MYEG's robust expansion in digital trade facilitation and strong position in Malaysia's software sector. My EG Services remains one of Maybank's top picks.

The group announced the expansion of its ZTrade platform on July 12, incorporating COO verification services from the Chinese customs authority (GACC). This expansion allows Malaysian exporters to streamline trade processes with China, potentially reducing operational costs and enhancing efficiency in cross-border transactions. MYEG's proactive approach in digital trade facilitation underscores its commitment to driving revenue growth through innovative blockchain solutions tailored for international commerce.

The analyst at the bank highlights the strategic significance of MYEG's ZTrade expansion, noting potential earnings contributions from enhanced COO verification services. With ZTrade's operational margins anticipated to exceed 95%, MYEG is poised to leverage its blockchain capabilities effectively in capturing a larger share of Malaysia-China trade volumes. Maybank's BUY recommendation reflects confidence in MYEG's ability to sustain growth and profitability amidst evolving market dynamics in digital trade facilitation.