KUALA LUMPUR: Shares of MyNews Holdings Bhd rose after the opening bell on Monday climbing 3.7% as it reported a 30% jump in first quarter net profit.
The press and retail convenience chain, is among the top gainer, rising 3.73%, or 0.5 sen to RM1.39.
Mynews’ net profit jumped 30% to RM8.24mil in the first quarter ended Jan 31, 2019 (1QFY19) from RM6.34mil a year earlier, helped by better sales and contributions from new outlets.
Its revenue for the quarter grew 37% to RM123.5mil from RM90.12mil a year ago.
“The improved revenue was principally contributed by the increase in the number of outlets and higher sales by the existing outlets consequent to the continuous efforts of improving the product offering and store concept,” Mynews said.
In line with the higher number of outlets and business volume, Mynews said its operating expenses also increased by 31% year-on-year to RM33.1mil.
CGS-CIMB Research said Mynews’ 1QFY10/19 core net profit of RM8.4mil came in slightly above expectations, making up 27% of its previous full-year estimate.
“We raise our FY19-21F forecasts by 1.4-5.8% mainly due to stronger-than-expected SSSG (same store sales growth).
“Upgrade to add, with a higher target price of RM1.57 (unchanged 24x CY20F P/E),” the research house said.
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