CIMB Investment Bank Bhd (CIMB Securities) maintained its HOLD recommendation on Mynews Holdings Bhd with an unchanged target price of RM0.51 after the convenience retailer proposed acquiring a 13.5-acre industrial site in Rawang, Selangor, for RM24.7 million to build a new distribution centre.
CIMB Securities analyst said the proposed facility would address capacity constraints at Mynews’ existing 2.6-acre distribution centre, which is nearing full utilisation and could limit future store expansion.
The research house said the new distribution centre would enhance Mynews’ ambient, chilled and frozen storage capabilities, allowing the company to expand its product range while supporting its target of opening 60 new stores annually by the end of financial year 2028. Mynews had 704 stores at the end of the third quarter of financial year 2026.
The acquisition, carried out through Mynews’ wholly owned subsidiary MRetail Sdn Bhd, is expected to be funded mainly through borrowings, with about 85% or RM21 million from bank financing while the remaining 15% or around RM3.7 million will come from internal funds.
CIMB Securities viewed the investment as a meaningful improvement to Mynews’ supply chain infrastructure, particularly its cold-chain capabilities, although the analyst noted that earnings forecasts would remain unchanged pending completion of the deal.
The research house estimated net gearing could rise to around 0.44 times from 0.36 times as at end of second quarter financial year 2026, which it considered manageable.
