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$MYNEWS / 5275 (MYNEWS HOLDINGS BERHAD)
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Good morning ☀️,

*1QFY10/25 Results Note 🗒️– Mynews Holdings*

Company: *Mynews Holdings Berhad (MNHB MK)* 🏪

Target Price: *RM0.80* _maintained (21x CY26F P/E)_ 📈

Rating: *Buy* _maintained_ 📈

*Key Highlights* 🏢:

📊*1QFY10/25 results: *In-line* ✅

📌 Revenue: +10.4% YoY, boosted by more stores & higher in-store sales 📈

📌 EBITDA Margins: +0.7pp to 14.1%, thanks to better leverage & profitable sales mix 🏪

📌 Core Net Profit: +155% YoY to RM4.5m, in line with expectations ✅

📌 QoQ: Revenue +3.6%, but core net profit flat (+0.8%) due to a seasonally higher tax rate 💰

📌 🏬 Current Store Network: 632 stores (+12), including 486 Mynews & 146 CU Mart stores 🏪

📈 *FY25F Outlook:*

📌 Forecasted Revenue: +7.5% YoY 📅 & Core Net Profit: +84.9% YoY to RM23.2m 📊

📌 Growth driven by margin expansion, cost management, turnaround in CU, better utilisation rate of food processing centre & more stores 🚀

📌 Expansion Plan: 50 new stores in FY25F (+8.1% YoY) 🏬

💡 *Investment Call:*

📌 *Maintain Buy* with TP of RM0.80 🔥. This is pegged to 21x CY26 P/E, this represents a 20% discount to 7-Eleven’s 5-year mean P/E of 26x.

📌 At 15.3x CY26F P/E, Mynews’s valuations are attractive due to:
1) Strong earnings growth (3-year net profit CAGR of 48.3% from FY24–27F after returning to profit in FY24) 📈
2) Established brand in Malaysia’s convenience store market 🏪
3) More inelastic demand for convenience stores like Mynews, due to their essential nature 🛒