CGS International
Date of Report: September 12, 2025
Mynews Holdings Berhad: Earnings Recovery, Growth Trajectory, and Sector Insights – A Comprehensive Analysis
Executive Summary: Mynews Holdings Surges Back to Pre-Covid Profitability
Mynews Holdings Berhad has delivered a remarkable earnings surprise in its latest quarter, signaling a robust recovery and growth potential that sets it apart in Malaysia’s competitive retail and convenience store sector. With core net profit for 3QFY25 returning to pre-pandemic levels, a positive outlook on consumer spending, and a turnaround in its CU segment, Mynews is poised for further upside. This in-depth analysis covers all major financials, peer comparisons, ESG performance, and sector outlooks.
Key Highlights and Broker’s Recommendation
Broker: CGS International
Date of Report: September 12, 2025
Recommendation: Add
Target Price: RM1.00 (49% upside from current price of RM0.67)
Forecast FY24-27F Core EPS CAGR: 59%
Latest 3QFY25 Core Net Profit: RM6.4m (+145% YoY, +182% QoQ)
9MFY25 Core Net Profit: RM12.6m (+124% YoY)
Surprise Dividend: Interim DPS of 0.5 sen/share
Strong Quarterly Performance and Upgraded Forecasts
Mynews Holdings Berhad’s 3QFY25 results exceeded both internal and street expectations, bringing core net profit back to pre-pandemic highs. This robust performance is attributed to strong revenue growth, margin expansion, and disciplined cost management. Following these results, CGS International has revised its FY25F/26F/27F net profit estimates upward by 33.8%, 17.2%, and 10.9% respectively, reflecting higher margins, lower administrative expenses, and lower tax estimates.
Mynews’s business model demonstrates high operational leverage, with incremental revenue translating disproportionately to profit growth. With a forecasted core EPS CAGR of 60% for FY24-27F, the company is set for a period of sustained earnings momentum.
Revenue and Profit Breakdown: Mynews Holdings Financials
| Metric |
Oct-23A |
Oct-24A |
Oct-25F |
Oct-26F |
Oct-27F |
| Revenue (RMm) |
730 |
804 |
900 |
987 |
1,072 |
| Operating EBITDA (RMm) |
81.8 |
106.4 |
129.8 |
145.4 |
163.5 |
| Net Profit (RMm) |
(10.70) |
9.38 |
19.75 |
29.95 |
38.39 |
| Core EPS (RM) |
(0.015) |
0.013 |
0.026 |
0.040 |
0.051 |
| Dividend (RM) |
0.005 |
0.005 |
0.010 |
0.020 |
0.033 |
| FD Core P/E (x) |
NA |
51.91 |
25.46 |
16.79 |
13.10 |
| Dividend Yield (%) |
0.75% |
0.75% |
1.56% |
2.98% |
4.96% |
| ROE (%) |
(4.7%) |
3.9% |
7.9% |
11.3% |
13.8% |
Segmental Performance and Key Growth Drivers
Revenue Growth: 3QFY25 revenue rose 11.3% YoY (+14% QoQ), driven by stronger in-store sales, post-Hari Raya recovery, and 40 new store additions during the quarter.
CU Segment Turnaround: CU achieved breakeven for the first time in 3QFY25. Mynews expects CU to turn profitable by FY26F, leveraging on RM51m unrecognised tax losses.
Food Processing Centre (FPC): Recorded its highest gains since returning to profitability a year ago, reflecting strong demand for fresh food post-fasting month.
Margin Expansion: Gross profit margin improved, aided by better product mix and cost controls.
Dividend Growth: Interim DPS of 0.5 sen/share declared, 9MFY25 DPS at 1 sen (vs 0.5 sen in FY24).
Peer Comparison: Malaysian & Regional Convenience Store Operators
| Company |
Ticker |
Recom. |
TP (Local) |
Price (Local) |
CY26F P/E |
CY26F ROE (%) |
Store Count (2024) |
| 7-Eleven Malaysia |
SEM MK |
Hold |
1.98 |
2.00 |
23.0 |
19.4 |
2,611 |
| Mynews Holdings |
MNHB MK |
Add |
1.00 |
0.67 |
16.0 |
11.8 |
644 |
| CP ALL PCL (Thailand) |
CPALL TB |
Add |
65.25 |
47.75 |
12.5 |
27.2 |
15,053 |
| Midi Utama Indonesia |
PT MIDI IJ |
NR |
n.a. |
452 |
17.3 |
17.8 |
2,956 |
Mynews currently trades at a compelling 16x CY26F P/E, below the 17–23x range of regional and local peers, reflecting upside potential as the market recognizes the sustainability of its earnings recovery and CU segment turnaround.
Malaysian Consumer Sector Valuation Matrix
| Company |
Ticker |
Reco. |
Price |
TP |
CY26F P/E |
EV/EBITDA |
P/BV |
ROE (%) |
Dividend Yield (%) |
| Nestle (Malaysia) |
NESZ MK |
Reduce |
95.50 |
78.00 |
37.4 |
35.7 |
22.8 |
98.6 |
2.5 |
| Fraser & Neave Holdings |
FNH MK |
Add |
27.00 |
36.50 |
15.8 |
2.3 |
9.4 |
15.1 |
3.3 |
| Mynews Holdings |
MNHB MK |
Add |
0.67 |
1.00 |
16.0 |
3.6 |
1.8 |
11.8 |
3.3 |
| Mr D.I.Y. Group (M) Bhd |
MRDIY MK |
Add |
1.56 |
2.09 |
19.6 |
11.9 |
6.6 |
35.2 |
4.1 |
Balance Sheet and Cash Flow Overview
| Metric |
Oct-23A |
Oct-24A |
Oct-25F |
Oct-26F |
Oct-27F |
| Total Cash & Equivalents (RMm) |
47.9 |
37.2 |
27.0 |
43.6 |
49.9 |
| Total Debtors (RMm) |
32.1 |
42.5 |
47.7 |
52.3 |
56.8 |
| Inventories (RMm) |
91.9 |
102.4 |
106.1 |
110.9 |
120.4 |
| Total Liabilities (RMm) |
397.3 |
399.9 |
406.1 |
422.8 |
428.2 |
| Shareholders’ Equity (RMm) |
238.6 |
244.2 |
256.4 |
271.4 |
284.9 |
| Net Cash Per Share (RM) |
(0.058) |
(0.060) |
(0.074) |
(0.052) |
(0.030) |
ESG Performance: Challenges and Path Forward
Current ESG Rating: D+ (LSEG ESG), among the lowest for public-listed consumer names in Malaysia.
Key Risks: Incomplete disclosure on food safety standards, environmental targets, and labor practices.
Improvement Initiatives: Enhanced emissions disclosure, focus on food safety at Food Processing Centre, ongoing sustainability reporting aligned with Bursa Malaysia and GRI Standards.
Implications: While ESG performance does not directly impact earnings at this stage, improving disclosures is vital for attracting institutional investors and improving rankings.
Key Growth Catalysts and Risks
Catalysts:
Government handouts (e.g., RM100 to all adults) anticipated to boost consumer spending.
Targeted promotional campaigns.
Aggressive new store rollout (net additions: 70 in FY25F, 60 each for FY26F and FY27F).
CU’s transition to profitability.
Risks:
Potential rise in operating costs and wastage.
Slower-than-expected revenue growth or margin compression.
Sector Ratings and Investment Outlook
Total Return Expectation: >10% over 12 months for an ‘Add’ rating.
Sector Outlook: Malaysian retail and convenience store sector remains highly competitive but offers strong leverage to a consumer spending recovery.
Valuation: Mynews’s CY26F P/E is at a discount to its peers, with upside as the market recognizes earnings quality and CU turnaround.
Conclusion: Mynews Holdings Set for a Valuation Re-rating
Mynews Holdings Berhad is on a sharp earnings recovery path, underpinned by strong revenue momentum, margin expansion, and disciplined cost management. The company’s turnaround in the CU segment, aggressive store expansion, and robust consumer demand position it for sustained profit growth. While ESG remains a work in progress, strategic initiatives and improved disclosures could drive further valuation upside.
For investors and analysts, Mynews offers a compelling blend of growth, operational leverage, and potential re-rating as its fundamentals strengthen relative to local and regional peers.
Appendix: Analyst Coverage and Contact
– **Lead Analyst:** Lew Cheng Wei ([email protected]) – **Co-Analyst:** Prem Jearajasingam ([email protected]) – **Major Shareholders:** D&D Consolidated (52.6%), JAG Capital Holdings (13.9%) – **Market Cap:** RM502.7m (US\$119.1m) – **Free Float:** 33.6% – **Price Performance:** +15.5% (1M), +14.5% (3M), +12.6% (12M) relative outperformance versus FBMKLCI
This comprehensive review positions Mynews Holdings as a top pick for investors seeking exposure to Malaysia’s dynamic consumer and retail sector.
