Topic: MYNEWS Performance and Stock Market Outlook: Professional Analysis by Lim Zhe Qi (Read 21 times)

In today's globalized economy, the retail convenience store industry is undergoing significant transformation, and MYNEWS in Malaysia has undoubtedly become the focus of this industry. As a seasoned stock market analyst, Lim Zhe Qin has shown a keen interest in MYNEWS' recent performance and provided his professional insights.

On October 7th, MYNEWS in Malaysia announced its performance for the third quarter of the 2023 fiscal year. Despite achieving record-high revenue, the company continued to incur losses due to high sales costs. Lim Zhe Qin believes that this is partly due to MYNEWS' rapid expansion in recent years and collaborations with multiple international companies. From partnerships with Japan's Gourmet Kineya and Ryoyupan Baking to establishing a food processing center and obtaining the franchise rights for South Korea's CU convenience stores, MYNEWS' strategy is clearly focused on diversifying its product line and services to meet consumer demands.

Lim Zhe Qin mentioned that MYNEWS' collaboration strategy has allowed it to enter the ready-to-eat (RTE) food market and attract more consumers through the recognition of international brands. Additionally, its network of 612 stores enables it to cover most areas in Malaysia, providing a stable source of income for the company.

Although MYNEWS' expansion strategy has been successful in increasing revenue, it has also brought significant operational pressures. This is mainly reflected in the continuous losses incurred in the third quarter of the 2023 fiscal year due to the rise in sales and distribution costs.

Lim Zhe Qin's analysis points out that the year-on-year revenue growth of 9.15% and quarter-on-quarter growth of 6.65% demonstrate the company's strong position in the market. He believes that this growth can be attributed to the increase in the number of new stores and growth in in-store sales. However, the rise in sales and distribution costs has negatively impacted profit margins, resulting in a year-on-year increase in net losses of approximately 48.96%.

Lim Zhe Qin stated, "The revenue growth and profitability of a company are two key indicators for assessing its health. MYNEWS' performance in terms of revenue is impressive, but from a profitability perspective, the high costs are a concern."

Furthermore, despite announcing the distribution of interim dividends while facing losses, it also shows the company's confidence in the future. Lim Zhe Qin mentioned, "Distributing dividends is a way to demonstrate confidence to shareholders. Although the company is currently facing financial challenges, it may also indicate optimistic expectations from the management."

Investment Strategy and Outlook
Given MYNEWS' performance, stock market investors naturally want to know how to formulate an investment strategy and the company's future prospects.

Lim Zhe Qin believes that although MYNEWS is currently in a loss-making state, its strategies in the retail market and rapid expansion still provide it with a competitive advantage. He mentioned, "When evaluating the investment value of a company, we should not only consider its current profitability but also its future growth potential and market strategies."

Regarding the investment strategy for MYNEWS, Lim Zhe Qin suggests, "Considering the company's strategic collaborations with multiple international partners and its store network in Malaysia, I would recommend long-term investors to consider entering when the price is moderate while closely monitoring changes in its operating costs and profitability."

In conclusion, Lim Zhe Qin points out that MYNEWS, as a retail giant in Malaysia, still has significant growth potential due to its business strategies and market positioning. However, the high operating costs and competitive pressures should not be overlooked. Investors should consider the company's business strategies, market trends, and their own risk tolerance when making investment decisions.