MyNews might face margins stress from new retailers


KUALA LUMPUR: Whereas poised to learn from additional reopening of the financial system, MyNews Holdings Bhd‘s margins could possibly be underneath stress within the coming quarters as a consequence of larger depreciation and advertising bills at its new retailers.

In a report, Kenanga Analysis famous that the group’s 1QFY22 internet lack of RM8.8il expectations as the upper opex disillusioned weighed on the bottomline regardless of the upper income on the opening of recent shops and better footfall.

“1QFY22 internet lack of RM8.8m got here beneath our and road’s internet revenue estimates of RM19.9m and RM19.4m, respectively,” stated the analysis agency.

Submit-results, Kenanga slashed FY22 earnings by 16% to RM16.7mil, accounting for larger opex for the brand new outlet launches, however maintained FY22 estimates.

It maintained its “outperform” suggestion with a decrease goal worth of 85 sen.

On outlook, Kenanga stated it remained optimistic on the enlargement plans, particularly given the nation’s transition to an endemic part on April 1.

“On additional reopening of the financial system, we’re optimistic on its outlook on the again of the rise within the variety of openings of its CU shops which can enhance its utilization for the FPC (guestimate of the present utilization price is 40-45%) , rising variety of myNEWS SUPER VALUE and myNEWS CVs shops, and enlargement of its eCommerce order supply providers.

“Notably, set-up prices for CUs are typically decrease than myNews shops (RM360k-RM450k vs. myNews’

RM400-450k) as a consequence of cheaper contemporary meals gear,” it stated.

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