CGS-CIMB Research downgrades call on MyNews to Hold

TheStar Wed, Jul 01, 2020 01:08pm - 3 years View Original


CGS-CIMB Research said in 2QFY20, Mynews bore the brunt of the impact of the movement control order (MCO) implementation, which saw volatile sales, temporary store closures (>30% of total stores closed at its peak) in weak footfall areas, and shorter operating hours for some stores.

KUALA LUMPUR: CGS-CIMB Equities Research downgrades its call for Mynews Holdings from Add to Hold, as it tempered its sales growth and margin expectations after a recent analyst briefing.

It said on Wednesday the company’s food production centre is currently underutilised at 25% of full capacity after restarting operations in mid-June, following a six-week closure.

“While movement restrictions have eased gradually, we think that footfall recovery is likely to be slow, as cautiousness on Covid-19 abounds, ” it said.

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