Disappointing start
? Mynews posted its eighth consecutive loss-making quarter with a core net
loss of RM7.1m in 1QFY22, which is below our and consensus expectations.
? The disappointing results were mainly due to lower-than-expected GP margin
and higher-than-expected operating costs arising from aggressive CU push.
? Downgrade our recommendation to Reduce with a lower TP of RM0.50 (29x
CY23F P/E) as we cut our FY23-24F core EPS forecasts by 55.7-57.7%.