KUALA LUMPUR: Shares of MyEG Services Bhd (MyEG) and Datasonic Group Bhd slump today following news that the Immigration Department will directly handle all immigration transactions in 2025.
Iris Corp Bhd, which is developing a new immigration system for the Immigration, is among the top gainers.
MyEG shrank as much as 20.42 per cent or 19.5 sen to 76 sen in early trade, prompting Bursa Malaysia to suspend the short selling of the stock until tomorrow morning.
As at 10.15am, Datasonic was down 3.5 sen or 7.07 per cent at 46 sen and Dagang NeXchange Bhd, which also has government contract exposure, lost 0.5 sen or 0.74 per cent at 67 sen.
Iris jumped 28 per cent or 3.5 sen to 16 sen, while AwanBiru Technology Bhd (formerly Prestariang Bhd) remained unchanged at 40.5 sen.
At closing, MyEG widened its loss to 26 sen or 26.7 per cent at 70 sen, Datasonic shed 35 sen or 7.07 per cent at 46 sen, while DNeX shed 2.5 sen or 3.7 per cent at 65 sen.
Iris jumped 32 per cent or four sen to 16 sen, while AwanBiru shed 0.5 sen or 1.23 per cent at 40 sen.
In a filing to Bursa Malaysia today, MyEG said it had not held any meeting with either Ministry of Home Affairs or the Immigration of the intention to converge all immigration transactions under a new system.
"The board will release the necessary announcements in a timely manner to Bursa should there be any material information which falls under the Main Market Listing Requirements," it said.
The New Straits Times reported on Monday that by 2025, all immigration-related affairs, including those now managed by outside parties such as MyEG, would revert to the Immigration.
Besides passport renewals and visa applications, applications and renewals of foreign worker and maid permits would be reverted to the department when it rolled out its National Integrated Immigration System (NIISe), its director-general Datuk Khairul Dzaimee Daud told the NST.
Under the current Malaysian Immigration System (MyMIMMs), some services are outsourced to independent contractors.
Meanwhile, Affin Hwang Capital downgraded MyEG to "Hold" from "Buy" with a lower target price of 93 sen from RM1.23 on heightened policy risks.
"Broadly, we expect the news and policy risks to weaken investors' interest in MyEG, considering the material revenue contribution from its immigration-related businesses.
"On the other hand, MyEG's steady 2022-2024 earnings outlook, stable revenue from the road-transport businesses, exciting new business opportunities, and potential business opportunities from NIISe related works should help support its share price," it said in a note today.
Affin Hwang, however, maintained MyEG 2022-2024 earnings forecasts.
"We now peg our price target at 19x 2023 price earnings ratio (PER) (from 25x), in line with MyEG's five-year average PER.