Analysts positive on Mynews future prospects, Maru Kafe to increase average spending

KUALA LUMPUR: Analysts are positive on Mynews Holdings Bhd’s (Mynews) future prospects, on the back of new cafe installation Maru Kafe and the new food processing centre (FPC).

Following a meeting with Mynews at the group’s headquarters, AmInvestment Bank Bhd (AmInvestment Bank) came away feeling positive on the future prospects of Mynews.

According to AmInvestment Bank, Mynews is now offering soft serve ice cream and fresh brewed coffee in Maru Kafe, which officially opened on October 15, 2018.

“Apart from the soft launch of Maru Kafe at Avenue K on September 15, 2018, Mynews has rolled out the café to 20 other outlets to date,” the research firm said.

It also noted that moving forward, management plans to install Maru Kafe in a total of 200 stores by financial year 2019 forecast (FY19F).

“We believe Maru Kafe will be able to increase the average spending per person or basket size in MyNews outlets from RM6.20 to RM7.00.

“With the addition of Maru Kafe, we raise our topline estimates by six per cent and seven per cent in FY19F and FY20F respectively to account for a higher basket size, expected rise in foot traffic and related spillover spending.”