PETALING JAYA: The pressure on MyNews Holdings Bhd’s profit margin is likely to persist in the near term, as the group continues to incur costs on store rationalisation, technology and new initiatives, ahead of potential productivity gains.
RHB Research said margin recovery should remain gradual, while topline momentum is expected to remain stable as traffic normalises from the third quarter onwards.
MyNews operates a convenience retail chain in Malaysia.
“Near-term spending is unlikely to ease materially as management continues rationalising weaker stores, while ongoing investment in technology and automation keeps the fixed-cost base high.
“MyNews Tech, incorporated in June 2026, is expected to support internal information technology development, while Myvndr is expected to launch its automated vending business in the financial year 2027 (FY27).
“These initiatives should improve productivity over time, but we expect the upfront costs to come ahead of any meaningful efficiency gains,” it said in a note.
The research house has cut FY26 to FY28 earnings forecasts by 14%, 14% and 13%, respectively, to reflect higher operating cost assumptions and a slower margin recovery.
Meanwhile, Maybank Investment Bank Research (Maybank IB) kept its earnings estimates unchanged. Given economic uncertainties led by the Middle East conflict, it said rising store operating costs, alongside softer consumer spending, may keep earnings growth suppressed in sequential quarters. “Nevertheless, MyNews’ focus will be on growing its store presence, driving fresh food sales, and continue to digitalise its processes for better efficiency gains throughout its supply chain and backoffice functions.”
Looking ahead, the research house believes that the larger convenience store industry has a challenging outlook amid a softer consumer spending environment, and rising input costs and store-operating expenses led by the Middle-East conflict.
On MyNews’ recently announced third-quarter results, Maybank IB said the net profit of RM4mil brought the net profit of the first nine months of FY26 to RM8mil, which accounted for 71% of the reserach house full-year earnings estimates.
