By FARA AISYAH / Pic By ARIF KARTONO

MYNEWS Holdings Bhd is betting on its new inhouse food manufacturing business and network expansion to drive its growth in the convenience store business space.

The company and partners, Ryoyu Baking Co Ltd and Gourmet Kineya Co Ltd, have invested RM100 million in their newly launched Japanese-inspired food production centre (FPC) in Kota Damansara, Selangor.

The facility, which operates under its subsidiaries, MyNews Ryoyupan Sdn Bhd and MyNews Kineya Sdn Bhd, will supply MyNews outlets across the Klang Valley with a wide array of high quality ready-to-eat (RTE) food.

“In order to provide Malaysians with food of Japanese quality and standard, we must bring in Japanese experts to produce it. The investment we (MyNews and Japanese partners) put in for the food production centre is about RM100 million, including the land and building,” MyNEWS group CEO Dang Tai Luk said at the launch of the FPC in Petaling Jaya (PJ), Selangor, yesterday.

He added that the FPC, which started commercial production in June this year, is able to support up to 600 outlets via two manufacturing plants.

However, the products currently being produced are sent to more than 300 MyNews outlets in the Klang Valley.

MyNews’ RTE product line includes selections from Maru Kafe: Maru Cream, a soft-serve ice cream; Maru Coffee and freshly baked products from Maru Bakes’.

There is also a wide selection of rice and noodle-based meals including sandwiches, onigiri, bento, curry laksa, nasi lemak and spaghetti among others.

Dang said MyNews aims to become the go-to convenience store with the investment venture.

The company has also introduced MyNews Dash, its online delivery service to further establish MyNews as the go-to convenience store in Malaysia.

“MyNews Dash started with only one point at our Taman Tun Dr Ismail outlet in Kuala Lumpur, so it covers only an area within 12km distance. We are looking for more points to establish this concept across the Klang Valley,” Dang said.

For next year, Dang said MyNews has allocated over RM400,000 capital expenditure for another 100 news outlets nationwide.

For the third quarter ended July 31, 2019, MyNews’ net profit increased marginally to RM7.45 million from RM7.27 million due to higher revenue.

The quarterly revenue rose 34.53% year-on-year to RM131.68 million due to the growth in the number of MyNews outlets from 385 to 472 and an increase in sales at existing stores, especially of food, beverages and tobacco products.

The company stated it continues to take positive steps to remain competitive in its business supported by its increasing store network, new line of in-house RTE food offerings and continuous overall innovations.

The successful commencement of its FPC production to feed its stores with a wide array of bakery and RTE products has established its capability to serve the demand of the fast consumption trend.

The ongoing pioneering initiatives by MyNews are bringing its business to the coveted level and standard of the convenience stores seen in the more advanced countries.

In the immediate-term, however, MyNews said its financial performance is dependent on market acceptance which requires aggressive marketing and time to shape consumer habits.

This strategy has been proven to be successful in countries where the convenience industry is much more advanced.

MyNews share price closed unchanged at RM1.35 yesterday, valuing the company at RM920.9 million.