PETALING JAYA: MyNews Holdings Bhd is expected to see improving margins and sustained earnings growth in the coming quarters, driven by easing cost pressures and continued store expansion.
The convenience store operator is focusing on scaling its network and refining its product mix to drive both customer traffic and profitability.
According to CIMB Research, although external factors may weigh on consumer spending in the short run, MyNews remains confident that its growth strategy will underpin performance over time. Having attended the company’s recent briefing, the research house indicated that MyNews’ outlook remains resilient despite softer footfall expectations.
“MyNews expects slower-than-anticipated footfall as conflicts in the Middle East reduce tourist arrivals and soften consumer spending,” CIMB Research said.
However, it added: “MyNews is confident that this temporary top-line setback will be offset in the longer term by its ongoing store expansion strategy.”
CIMB Research highlighted that MyNews targets to open about 100 new stores in its financial year ending Oct 31, 2026 (FY26), up 14.2% from 702 stores at the end of the fourth quarter of FY25 (4Q25).
The research house also expects profitability to improve as cost pressures ease and scale benefits kick in.
“We expect margins to improve from 2Q26 onwards, predicated on the normalisation of operating costs quarter-on-quarter, with the absence of one-off operating costs related to automation rollout, and higher operating leverage,” CIMB Research said.
It highlighted that additional support is likely to come from internal initiatives, as margin expansion will further be supported by MyNews’ cost optimisation efforts and ongoing product mix optimisation, with a greater focus on higher-margin ready-to-eat offerings to drive store traffic and basket size.
CIMB Research maintained its “buy” call on MyNews, with an unchanged target price of 75 sen.
“We believe its 14.7 times 2026 price-earnings valuations are attractive given its robust earnings growth and established convenience store brands in Malaysia,” it said.
“With no surprises from the 1Q26 analyst briefing, we keep our FY26 to FY28 earnings per share forecast,” it added.
CIMB Research pointed out that the company’s valuation is supported by its robust earnings growth profile, with a three-year core net profit compounded annual growth rate of 16.2% over FY25 to FY28, and its multiple established brands in Malaysia’s convenience store segment.
