THE Ministry of Health (MOH) appointed My EG Services Bhd (MyEG) to become a Covid-19 test screening service provider, allowing for multiple monetisation opportunities.
According to CGS-CIMMB Research analyst Mohd Shanaz Noor Azam, the monetisation opportunities include the Covid-19 test screening fee (ranging from RM30 to RM150 for locals and RM60 to RM250 for foreigners).
Apart from that, there will also be a service fee for mandatory quarantine at a private facility, along with a ‘meet-and greet’ service to assist travellers throughout the processes.
“We understand that the Covid-19 test screening will be done twice, once on arrival and again on the 14th day after arrival,” he said in a research note on Monday.
The analyst said the project is intended to facilitate the government’s measures to control the outbreak of Covid-19 by enhancing and expediting the process of administering Covid-19 screening and designating quarantine locations for travellers.
The project duration is from November 2020 to October 2022.
Mohd Shanaz also mentioned that the latest passenger traffic data published by Malaysia Airports Holdings Bhd indicated about 85,000 international travellers in August 2020.
“Assuming a 50-50 mix between arriving and departing passengers, we estimate an average of 1,300 international arrivals daily and we see room for higher Covid-19 test screening demand with the potential recovery in tourist arrivals of 10 million in 2020 to 18.6 million in 2021 and 39.9 million in 2022,” he said.
CGS-CIMB reiterates its add call on MyEG, with an unchanged target price of RM1.96, with a market capitalisation of RM5.07 bil as of 12.47pm last Monday. – Oct 14, 2020
