Technical tracker - HLIB Retail Research –2 September 2022 MY | HLeBroking

Technical tracker - HLIB Retail Research –2 September 2022

MYNEWS: Slowly but surely

Convenient store (CVS) operator. Being the largest home-grown retail convenience store operator in Malaysia, MYNEWS' portfolio includes Mynews, Mynews Supervalue, CU, and WH Smith Travel Limited. By entering into two separate agreements with Japanese wholly-owned companies in 2017, MYNEWS diversified into fresh food production to supply and sell Halal ready-to-eat food and baked goods to enhance the fresh food offerings at its stores. As of 2Q22, MYNEWS owns 558 outlets (vs 4QFY21: 542 outlets).

CU-the largest CVS from Korea. In April 2021, MYNEWS launched its first CU store –the largest convenience store in South Korea – to complement its existing CVS line-up, offering Ready-to-Eat fresh food with South Korean street food flavors, snacks, beverages, and beauty products imported from South Korea. Since then, the number of CU outlets grew encouragingly to 95 in 2Q22 from 61 in 1Q22. With c.65% of the selection focusing on the fresh food segment, which typically gamers a higher margin than other products, the rollout of CU is deemed as one of the major long term earnings drivers. The ramping up of CU stores opening will also complement MYNEWS’ food processing centre (FPC) by improving its utilisation rate.

Despite persistent losses for nine consecutive quarters – as CU is still undergoing painstaking gestation period (c.2.5 years) despite being a beneficiary of the economic recovery – market consensus is expecting MYNEWS to return to black by FY23, premised by (i) growth in number of stores; (ii) improvement in efficiency in running the FPC (iii) bigger contribution from CU stores with a higher proportion from fresh food segments that command higher margin; and (iv) potential of new RTE product launches.

Pending Double bottom breakout. Technically, MYNEWS is pending for a double bottom breakout. A successful breakout above the RM0.47 neckline will indicate a downtrend reversal and spur the price toward RM0.50-0.52-0.55 level. Cut loss at RM0.39.

Collection range: RM0.40-0.42-0.45

Upside targets: RM0.50-0.52-0.55

Cut: RM0.39

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MYNEWS：稳定增长

便利店（CVS）运营商。作为马来西亚最大的本土零售便利店运营商，MYNEWS 所拥有的品牌组合包括 Mynews、Mynews Supervalue、CU 和 WH Smith Travel Limited。通过在 2017 年与日本全资公司签订两项单独的协议，MYNEWS 涉足生鲜食品生产，供应和销售清真即食食品和烘焙食品，以提升其门店的生鲜食品供应。截至 2022 年第 2 季度，MYNEWS 拥有 558 家分行（2021 财年第 4 季度：542 家分行）。

CU-韩国最大的CVS。 2021 年 4 月，MYNEWS 开设了第一家 —CU 店韩国最大的便利店—以补充其现有的 CVS 产品线，提供韩国街头风味的即食生鲜食品、零食、饮料和美容产品（从韩国进口）。此后，CU 门店数量从 2022 年第一季度的 61 家增至第二季度的 95 家。在CU 专注于高利润率的新鲜食品领域 (c.65%的总产品)，CU的推出被视为MYNEWS的主要盈利驱动因素之一。 除此之外，CU 门店的增加也将提高MYNEWS 的食品加工中心 (FPC) 利用率。

尽管 MYNEWS 是经济复苏的受益者，但由于CU仍处于艰苦的酝酿阶段（约 2.5 年），导致了MYNEWS 连续九个季度持续亏损。话虽如此，市场共识预计 MYNEWS 将在 23 财年恢复盈利，前提是 (i)店铺数量的增加； (ii) FPC 的利用率的提高 (iii) CU 门店的贡献更大，利润率更高的生鲜领域的比例增加； (iv) 新 RTE 产品推出的可能性。

等待双底突破。从技术上讲，MYNEWS 正在等待双底突破。股价若成功突破 RM0.47 颈线将表明下跌趋势反转，并将价格推向 RM0.50-0.52-0.55 水平。投资者可把止损设置在RM0.39。

买入范围：RM0.40-0.42-0.45

上行目标：RM0.50-0.52-0.55

止损：RM0.39

Report: https://www.hlib.hongleong.com.my/Published/Download.ashx?ArticleId=19320&mode=view

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