KLSE (MYR): MYNEWS (5275)
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Last Price
0.68
Today's Change
0.00 (0.00%)
Day's Change
0.67 - 0.685
Trading Volume
251,400
2024-06-25
2024-06-25
2024-06-24
2024-06-24
2024-06-24
2024-06-24
2024-06-24
Gabriel Khoo
965 posts
Posted by Gabriel Khoo > 2024-03-25 09:40 | Report Abuse
Recovery to pre-Covid-19 profit levels achievable by FY10/26F We see Mynews at an inflection point, with its food processing centre (FPC) currently operating at 70% utilisation, which is close to breakeven. Management also guided that it has managed to reduce food wastage from its FPC to be in line with the industry average. With the focus on expanding its store footprint by another 80-100 stores in FY24F, we expect Mynews’s revenue to grow by 14.5% yoy in FY24F. This is reflective of our overall constructive view on private consumption trends into 2024F, as articulated below. We believe the higher store openings in FY24F compared to FY23 should drive up utilisation of its FPC, gradually lifting gross margins back to 37%, last seen in FY17, and help Mynews return to profitability in FY24F. We expect FY25F and FY26F core net profit to jump 66.9% and 70.8%, respectively, to reach pre-Covid-19 highs of RM31m by FY26F.
From CIMB