PETALING JAYA: Analysts expect MyNews Holdings Bhd to deliver continued growth, underpinned by steady expansion in store numbers and improving earnings across its formats, even as higher operating costs temper near-term upside.
Maybank Investment Bank Research (Maybank IB) and RHB Research reiterated their “buy” calls on the company with unchanged target prices of 80 sen a share, pointing to sustained sales momentum, operating leverage and a broader earnings base as key drivers into financial year 2026 (FY26).
RHB Research noted that the core MyNews convenience format remains the earnings anchor, while its CU stores’ return to profitability should contribute meaningfully on a full-year basis in FY26.
It said the WHSmith stores, which contribute about 11% of group earnings, are positioned to benefit from rising airport footfall ahead of Visit Malaysia 2026, with six new outlets at KLIA Terminal 1 expected to lift segment earnings by around 35%.
The research house said MyNews’ Supervalue format should continue to benefit from higher Basic Rahmah Contribution or Sara allocations next year, although the impact is expected to be minimal given its smaller footprint and lower margins.
“Taken together, the higher volumes across formats should enhance supplier bargaining power and support further gross profit margin expansion,” RHB Research noted.
Maybank IB said MyNews’ outlook remains positive despite a mild earnings miss in the fourth quarter of FY25 (4Q25), which it attributed mainly to “higher-than-expected interest expense”.
The group posted a 4Q25 net profit of RM5mil, bringing full-year FY25 earnings to RM18mil, or about 92% to 93% of house and consensus estimates.
Revenue of RM879mil, up 9% year-on-year, was in line with expectations, supported by stronger average daily sales and the addition of 64 new stores over the year.
Operationally, Maybank IB highlighted improving leverage as a key theme.
Earnings before interest and tax expanded a sharp 40% on “product mix improvements” and better economies of scale, with operating expenses easing to 35% of revenue from 36% a year earlier.
With FamilyMart Partner Chain (FPC) and CU stores now profitable, the research house said MyNews’ FY26 earnings could see a faster pace of growth, helped by firmer consumer sentiment and tourism spending.
As at end-4Q25, MyNews had 683 stores across all its brands – MyNews, Supervalue, CU, WH Smith and Maru Coffee.
Maybank IB, however, trimmed FY26-FY27 earnings forecast for MyNews by 3% to 5% to reflect current run rates.
RHB Research struck a more upbeat tone, saying FY25 results were “within expectations”, with core profit of RM19.3mil meeting forecasts.
The research house noted that margin expansion remained intact despite higher selling and distribution costs from sales and service tax expansion and minimum wage adjustments, as gross profit margin widened to 38.3% on stronger purchasing power from scale.
At 15.5 times FY26 forward earnings, RHB Research noted that MyNews’ valuation remains below pre-pandemic averages, even as it flagged higher-than-expected operating costs as the main risk.
