KUALA LUMPUR (June 28): At least three research houses have lowered their target prices (TPs) for MyNews Holdings Bhd following the announcement of its largest quarterly loss since it was listed in 2016.
CGS-CIMB Research has lowered its TP for the stock to 91 sen from RM1, followed by RHB Investment Bank Research (RHB Research) to RM1.20 from RM1.25 and Kenanga Research to 95 sen from RM1.
MyNews’ stock was down three sen or 3.39% this morning to 85.5 sen.
To recap, MyNews net loss widened further to RM10.32 million for the second quarter ended April 30, 2021 (2QFY21), compared with a net loss of RM2.33 million during the same quarter a year ago.
Based on corporate announcements and news flow today, companies in focus on Monday (June 28) may include: Serba Dinamik Holdings Bhd, IOI Corp Bhd, HB Global Ltd, Malaysia Airports Holdings Bhd, MY EG Services Bhd, Yinson Holdings Bhd and MyNews Holdings Bhd.
CGS-CIMB Research expected the opening of 40 to 100 new CU outlets per year over financial years 2021 ending Oct 31 (FY21) to FY23 forecast, noting that the capacity take-up will be gradual. “Thus, we are still expecting its FPC to remain loss-making till end-FY22 forecast, ” it added
PETALING JAYA: Although the opening of CU outlets by MyNews Holdings Bhd is positive for the group’s earnings growth, weak footfall of stores coupled with low food processing centre (FPC) utilisation rates pose risks in the near-term.
CGS-CIMB Research expected the opening of 40 to 100 new CU outlets per year over financial years 2021 ending Oct 31 (FY21) to FY23 forecast, noting that the capacity take-up will be gradual.
, aims to bank on the expansion of its outlets and potential brand tie-ups as it sees this as growth drivers in the wake of the revival of stiff competition in the retail space.
As the second-largest convenience store chain in the country after 7-Eleven, its latest brand tie-up with leading South Korean convenience store CU last year would culminate in the opening of 30 to 50 CU outlets this year. The outlet was launched on April 1.
Analysts are upbeat about the opening of the outlets as they expect the brand’s potential scalability to support the company’s earnings growth.
Group CEO Dang Tai Luk (pic below) told StarBiz that it plans to maintain at least 100 outlets for this year and the next.