KUALA LUMPUR (June 19): Analysts have cut their earnings forecasts for MyNews Holdings Bhd (KL:MYNEWS), amid higher operating costs and a softer near-term sales outlook, following weaker-than-expected second-quarter results.

CIMB Securities said MyNews’ core net profit for the quarter ended April 30, 2026 (2QFY2026) fell 89.8% year-on-year to RM300,000, missing expectations due to weaker-than-expected revenue and a surge in operating expenses. 

In a note on Friday, the research house said any recovery in consumer sentiment — potentially supported by easing US-Iran tensions — is likely to be gradual amid persistent inflationary pressures. Elevated input costs are expected to continue weighing on margins, while the expanded service tax on leasing services could further dampen operating leverage in the near term.

“While valuation appears attractive, we take a more cautious stance given MyNews’ high exposure to the convenience retail segment, weak consumer sentiment and rising inflationary pressures,” the house said. It cut its FY2026-FY2028 earnings forecasts by 22%-25%.

Shares of MyNews did not fare well following the weaker-than-expected second-quarter results. The stock opened 3.2% lower at 45 sen on Friday and was last trading at 46 sen, down 1.08%, with 149,200 shares traded, giving it a market capitalisation of RM345.16 million.

At least two research houses have downgraded the stock to 'hold', including CIMB, which also slashed its target price by 32% to 51 sen. The stock currently has one 'buy' and four 'hold' calls, with a consensus 12-month target price of 64 sen, implying a potential upside of 39.1%.

Maybank Investment Bank similarly lowered its earnings estimates by 22%-38% for FY2026-FY2029 and cut its target price to 49 sen, citing a challenging outlook. 

In a separate note, the research house said it expects consumer spending in the convenience store segment to remain subdued, as shoppers shift towards grocery retailers offering lower prices and a wider product range.

New product launches and higher advertising and promotion spending may be needed to drive footfall and sustain sales, it added. 

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