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Mynews Holdings Bhd has lost some 28.2% over the past year but the counter is slowing showing some signs of a recovery. The counter has already inched up 8.5% over the past 6 months. In fact, technical analysts are expecting the stock to kick-start a new upcycle in the near term with resistance of 58 sen followed by 64.5 sen.

The good news is that Mynews managed to return to the black in 4QFY23 with a net profit of RM947,000 from a net loss of RM82,000 on the back of a flattish revenue growth at RM186.2 million. However, on a full year basis, the company is still loss making albeit a narrower loss of RM10.7 million in FY23 versus RM19.6 million in the previous year.

This was on the back of improved revenue to RM730.24 million from RM631.33 million boosted by higher number of outlets and an increase in average selling prices. These coupled with a gross margin improvement of 1%-point from better sales mix, resulted in net losses declining by 41% to RM10mil in FY23.

Despite a profit in 4QFY23, analysts are still cautious in the near term due to its challenging outlook in the near term. This is because of a longer-than-expected gestation period for its CU stores, its South Korean convenience store chain, mainly due to stiff competition from other convenience stores.

Mynews, which operates more than half of its 615 convenience store outlets in the Klang Valley, will also incur higher operational and depreciation costs from the new outlets and a slowdown in consumer spending caused by inflationary pressures.

What is probably interesting about Mynews is its prominent substantial shareholder.

Datuk Seri Johari Abdul Ghani, via his private vehicle JAG Capital Holdings Sdn Bhd, holds a 13.85% stake in Mynews. Johari, who is the former Finance Minister II, has been appointed as the new Plantation and Commodities Minister following a Cabinet reshuffle on Dec 12.

JAG Capital emerged as the second largest shareholder of Mynews in mid-July when it acquired a 10.02% stake. Mynews is just one of the many stocks he has been taking up stakes in.

Johari emerged as the second largest shareholder of Media Prima Bhd, via JAG Capital, which acquired another 54.37 million shares in March 2021. Following the acquisition ,Johari has a direct holding of 15.15% Media Prima.

His main investments are KUB Malaysia Bhd, and CI Holdings Bhd, in which Johari is the single largest shareholder of the company, with a 33.3% indirect interest in the company. It is certainly exciting to see how these listed companies could benefit from Johari’s presence as a major shareholder

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Here are the setup based on Daily Chart:

1. Change of trend with climatic volume

2. Accumulation stage