Stock Digest - Nova Wellness Group Bhd - Softer growth in House Brands and Higher Costs Hit Earnings

NOVA has around 960 outlets distributing its products currently, which is slightly below its earlier target at 980 outlets. Nevertheless, NOVA remains committed to increase its number of distributors to 1,100 in FY23 to gain more market share. We believe the additional market share brought in by new distributors will be the key driver for NOVA’s growth.