PETALING JAYA: Stronger margins and improving profitability have reinforced confidence in MyNews Holdings Bhd’s growth prospects, with research houses turning more bullish on the stock.
CGS International Research (CGSI Research) said MyNews’ core net profit for the nine months ended July 31, (9M25), rose to RM12.6mil, meeting 85% of its forecast and 75% of Bloomberg consensus’ estimates for the financial year ending Oct 31, 2025 (FY25).
This was driven by revenue growth and margin expansion.
Following the results, CGSI Research lifted its FY25, FY26 and FY27 core net profit estimates by 33.8%, 17.2%, 10.9%, respectively, to reflect higher margins, lower administrative expenses and low tax expense estimates.
“We believe MyNews has proven its ability to deliver sustainable earnings growth and expect it to grow even stronger on higher consumer spending,” it noted.
CGSI Research reiterated an “add” call with a higher target price of RM1.00 a share, from 75 sen previously, and expects the group to deliver an FY24 to FY27 core earnings per share compound annual growth rate of 59%.
It also highlighted that “we also believe CU Mart broke even for the first time ever.”
“As investors come to appreciate the sustainability of its earnings recovery and CU turnaround, MyNews’s valuations are likely to re-rate with stronger earnings delivery, in our view,” it added.
To note, MyNews holds the licence to operate and sub-franchise South Korea’s CU Mart convenience stores in Malaysia.
RHB Research said MyNews’ 9M25 gross profit margin improved 0.9 percentage points year-on-year to 38.3% on better wastage control, a stronger product mix, and higher contribution from CU Mart.
“We expect MyNews to continue delivering solid and stable performance, with management prioritising the expansion of this already profitable brand.
“MyNews should benefit from higher traffic and spending following the rollout of the Basic Rahmah Assistance redemption programme, while Visit Malaysia Year 2026 could provide another lift,” said RHB Research.
“Taken together, higher sales volumes across all brands should enhance bargaining power with suppliers, support gross profit margin expansion, and improve food processing centre utilisation,” it added.
Post results, RHB Research maintained a “buy” call with an unchanged target price of 80 sen a share.
“We expect CU Mart to turn profitable and contribute meaningfully in FY26, supported by tighter wastage control and an improved product assortment focused on high-performing stock keeping units.”
