MYEG Expands Blockchain Platform ZTrade with COO Verification Services
MYEG Services (MYEG) has expanded its blockchain platform ZTrade to include verification services for China-issued Certificates of Origin (COOs). This move is expected to boost MYEG’s monetization avenues, according to a report by Maybank Investment Bank (Maybank).
Boosting Malaysia-China Trade
The introduction of COO verification services positions MYEG favorably to capitalize on the growth of Malaysia-China trade relations. This expansion gives MYEG a competitive edge in the blockchain segment.
Maybank’s Positive Outlook
Maybank has maintained its BUY rating for MYEG, highlighting 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, supported by MYEG’s robust expansion in digital trade facilitation and strong position in Malaysia’s software sector.
Expanding Capabilities
MYEG announced the expansion of its ZTrade platform on July 12, incorporating COO verification services from the Chinese customs authority (GACC). This move allows Malaysian exporters to streamline trade processes with China, potentially reducing operational costs and enhancing efficiency in cross-border transactions. MYEG’s proactive approach to digital trade facilitation demonstrates its commitment to driving revenue growth through innovative blockchain solutions tailored for international commerce.
Leveraging Blockchain Potential
The analyst at Maybank 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 effectively leverage its blockchain capabilities to capture 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.
