KUALA LUMPUR: MyNews Holdings Bhd shares were up by 0.51 per cent in early trade after the company returned to the black in the fourth quarter ended Oct 31, 2023 (4Q FY2023) with a net profit of RM947,000 versus an RM82,000 net loss a year ago.
It was reported yesterday that quarterly revenue rose by 3.08 per cent to RM186.16 million from RM180.6 million driven by new stores and improvement in overall in-store sales.
For the full year, net loss narrowed to RM10.7 million from RM19.62 million in 2022, with revenue rising 15.67 per cent to RM730.24 million from RM631.33 million.
The group currently operates 460 myNEWS (including 26 Supervalue) stores, 131 CU outlets and 19 WHSmith stores.
At 11 am, the share increased half-a-sen to 52 sen with 912,900 shares traded.
In a note today, RHB Investment Bank Bhd said FY2023 (October) core earnings beat expectations on robust performance from myNews.com unit that offset narrowing CU losses.
It said “the worst is over” for the company and that its target valuation is premised on “the anticipation of a sustainable turnaround, driven by enhanced operational efficiencies, strategic expansion, and the emergence of a new major shareholder”, it added.
The research house raised its 2024 and 2025 earnings forecast by four per cent and 14 per cent, respectively, and introduced a 2026 forecast bottom-line of RM36 million.
It has a “buy call” with a target price of RM0.68. The key risk will be delays in CU’s turnaround and weaker-than-expected consumer sentiment, it said. – BERNAMA
