在线博彩平台（www.hg108.vip）:Convenience store players to feel the pinch
For 7-Eleven Malaysia Holdings Bhd, every 10% decline in tobacco sales would lower the group’s total revenue by 2.2%, assuming tobacco sales make up 35% of its CVS segment sales, according to the research house’s estimates.Telegram中文群组（www.tg888.vip）是一个Telegram群组分享平台，飞机群组内容包括Telegram群组索引、Telegram群组导航、新加坡Telegram群组、Telegram中文群组、Telegram群组（其他）、Telegram 美国 群组、Telegram群组爬虫、电报群 科学上网、小飞机 怎么 加 群、tg群等内容，为广大电报用户提供各种电报群组/电报频道/电报机器人导航服务。
PETALING JAYA: The government’s proposed bill to ban the sale of all tobacco products, including e-cigarettes, to people born in and after 2007 in a bid to curb smoking, will negatively impact sales of Malaysia’s convenience store (CVS) players.
The Tobacco and Smoking Control Bill 2022 was first tabled to the Dewan Rakyat on July 27. The bill will be tabled in the next parliamentary meeting scheduled to start on Oct 26. In addition to the ban of tobacco sale for people born in and after 2007, the bill also prohibit retailers from displaying tobacco products, smoking devices as well as their substitutes.
CGS-CIMB Research stated if the bill were to be approved, local CVS players would not be able to display tobacco products and smoking-related items in their stores, which could hurt their tobacco sales.
“Based on our channel checks, tobacco sales form 7% to 35% of CVS operator’s sales at this juncture.
“Nevertheless, we expect the impact on margins and bottom line to be smaller,” it said, given cigarettes are typically a low-margin sales product.
CLICK TO ENLARGE,
The research house, in a report last Friday, stated a sensitivity analysis to gauge the impact of every 10% decline in tobacco sales to its revenue forecast for the CVS players, found QL Resources Bhd would be least impacted due to its well diversified business model and lowest revenue contribution from tobacco products among its peers.
Every 10% decline in tobacco sales would lower QL Resources’ total revenue by 0.1% only, assuming tobacco sales make up 6.6% of its CVS segment sales.
For 7-Eleven Malaysia Holdings Bhd, every 10% decline in tobacco sales would lower the group’s total revenue by 2.2%, assuming tobacco sales make up 35% of its CVS segment sales, according to the research house’s estimates.
However, the impact on 7-Eleven’s revenue will partly be cushioned by its pharmaceutical business segment.
MyNews Holdings Bhd would be impacted the most as CGS CIMB’s Research analysis revealed that a 10% decline in tobacco sales would lower the group’s total revenue by 3.5%, assuming tobacco sales make up 35% of its sales, and given that it generates 100% of its revenue from the CVS business.
CGS CIMB added that 7-Eleven generated 62% of its first quarter revenue for financial year 2022 (1Q22) from its CVS business and QL Resources, via Family Mart, generated only 13.4% of its FY22 revenue.