KUALA LUMPUR: Shares in MyNews Holdings Bhd fell over 4% in early trade after posting its largest quarterly loss in the second quarter ended April 30 since its listing in 2016.

       The convenience retail chain store fell 4.52% or four sen to 84.5 sen. It has risen some 34% year-to-date.

       MyNews saw its net loss widened to RM10.32mil in the second quarter ended April 30, 2021 (2Q21) compared with RM2.33mil in the same quarter last year.

       Revenue fell 15.8% to RM103.9mil against RM123.4mil a year ago.

       For the first six months ended April 30, MyNews posted a net loss of RM19.2mil from a net profit of RM2.01mil a year ago.

       Maybank Investment Bank Research said MyNews’ 2Q21 results disappointed largely due to lower-than-expected sales led by ongoing MCO restrictions.

       It said although earnings weakness may persist with the imposition of FMCO on June 1, the ramp up of vaccinations should quicken the pace of sales recovery in the medium term.

       “2Q21 net loss of RM10mil brought 1HFY21 net loss to RM19mil below expectations against our/consensus full-year net profit estimates of RM14mil/RM8mil respectively.

       “The earnings shortfall was mainly from lower-than-expected sales and weaker product mix. No dividends were declared this quarter,” Maybank said.

       The research house projected for a net loss in FY21 and lower FY22 earnings estimates by 8%.

       “Rolling forward valuations, we now peg MyNews to normalised FY22 PER of 32x (mean) (from 34x CY21 PER previously), to derive a higher target price of 94 sen. Upgraded to hold,” it said.