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Is the change of plans a sign of better things to come for the group in FY2024 after suffering four years of losses since the pandemic hit?
MyNews founder and executive chairman
Dang Tai Luk tells The Edge: "I'm more optimistic this year than last. Our data shows that the basket size is improving and in-store sales are improving, too."
Is the change of plans a sign of better things to come for the group in FY2024 after suffering four years of losses since the pandemic hit?
MyNews founder and executive chairman
Dang Tai Luk tells The Edge: "I'm more optimistic this year than last. Our data shows that the basket size is improving and in-store sales are improving, too."
We reiterate Add on Mynews, with a higher GGM-derived TP of RM0.89. We think Mynews could return to pre-Covid-19 core net profit levels by FY26F.
■ Store expansion leading to increased utilisation in its FPC should complement improved economic activity and tourist boost in footfall.
At 12.6x CY26F P/E, valuations are undemanding, in our view. This note marks the transfer of coverage to Lew Cheng Wei.
Mynews has turned profitable since the fourth quarter of FY2023. Barring any unusual seasonal changes
and unforeseen circumstances, Mynews is confident that the worst is over and expects that its
performance will continue to improve.
For the current quarter ended 31 January 2024, Mynews recorded a revenue of RM195.52 million which
was RM11.42 million or 6.2% higher than the preceding year’s corresponding quarter. The revenue
increase was mainly contributed by the improvement in overall in-store sales. The number of outlets
increased by one, from 596 to 597. Gross profit increased by RM9.68 million or 15.5%, from RM62.29
million to RM71.97 million, while its margin, boosted by the improvement in sales mix and higher margin
of CU business, improved to 36.8% from 33.8%.
According to Nielsen, Mynews has been continuously gaining market share, with sales growing despite the overall decline in the convenience store sector.
