Will AmInvestment's forecast come true?
AmInvestment Bank Research is optimistic about the long-term prospects of MyNews Holdings Bhd with its potential Supervalue and CU Outlet branches.
The research firm underlined that the addition of a MyNews branch saw it among the few growth premium stocks in the convenience store segment in Malaysia.
MyNews earnings report recorded a net loss of RM8.89 million for the 4th quarter ended October 21, 2021 (4QFY21) compared to RM14.92 million in the previous quarter.
Revenue increased 10.87% to RM104.08 million from RM93.89 for 3QFY21 and expects profit in FY22 for the financial year ended 31 October 2022 to increase with the reopening of the economy and plans to expand the MyNews outlet network.
Meanwhile, AmInvestment also stated that the pattern of consumer spending has gradually returned to normal as during the pre-Covid-19 era due to the relaxation of movement restrictions, adding to the firm's confidence in the growth of MyNews.
To date, MyNews has opened a total of 41 CU branches with an additional 36 branches since the beginning of October and the total number of MyNews branches nationwide is 518 branches.
AmInvestment maintained a ‘buy’ recommendation for MyNews with an unchanged fair value of RM1.18 based on an unchanged price -earnings ratio of 29 times FY23 earnings per share.
The early morning trading session saw MyNews shares rise 1.16% to 87.5 sen with a market capitalization of RM590.06 million.
