Latest news with #99SpeedMartRetailHoldingsBhd
The Star
21-07-2025
- Business
- The Star
Bargains drive demand as margins face pressure
PETALING JAYA: Growth numbers for the consumer sector could moderate in the second half of 2025, especially for retailers, following a strong start to the year with the Hari Raya celebrations. This was despite the sector providing a defensive shelter amidst the uncertain global macroeconomic outlook, thanks to the domestic-centric earnings base and resilient consumption on stable employment and continuous financial support. In a report, RHB Research said the prospects of subdued consumer sentiment and rising operating expenditure (opex) will cap earnings growth. 'Therefore, we strategically advocate for the liquid large-cap retailers with better earnings visibility, backed by superior operational scale and efficiency. We maintain a 'neutral' call,' RHB Research said. It added that moving past the immediate term, it foresees consumer sentiment staying soft, impacted by elevated inflationary pressures as well as uncertain economic and income outlooks stemming from global trade tensions. 'As such, inflation-weary consumers will continue to spend selectively, prioritising essential purchases and bargain-hunting for value, hence capping discretionary spending,' it noted. RHB Research said it prefers defensive and liquid large-cap names like MR DIY Group (M) Bhd and 99 Speed Mart Retail Holdings Bhd for their ability to capture consumer spending and reasonable valuations versus consumer staple peers. The research house also likes Farm Fresh Bhd for its ambitious drive to penetrate more segments in the dairy industry and favours Guan Chong Bhd for its stellar earnings outlook, supported by forward sales at elevated combined ratios and normalised production volumes. 'We also highlight Focus Point Holdings Bhd 's undemanding valuation, notwithstanding the robust optical sales momentum on the back of the rising myopic population and proactive marketing drive.' On the sales and service (SST) tax, RHB Research said it does not reckon companies will be able to pass on the additional costs considering the demand elasticity and anti-profiteering regulation in place. With that, it opined that margin trends could turn subdued, particularly for retailers like Aeon Co (M) Bhd, Padini Holdings Bhd , Mynews Holdings Bhd and Focus Point, unless there are significant efficiency gains to offset the impact. 'On the other hand, things are turning more favourable for food manufacturers like Nestle Malaysia Bhd , Farm Fresh and Power Root Bhd as easing commodity prices and strengthening of the ringgit should translate to a promising margin outlook.' Risks include a major slowdown in economic growth and a sharp surge of commodity prices. 'We believe they can better mitigate opex inflation owing to their dominant market share, massive scale of operations, and established brand equity,' it said.
The Star
10-06-2025
- Business
- The Star
Trading ideas: Yinson, 99 Speed Mart, Sealink, Citaglobal, Chin Well
KUALA LUMPUR: Here are some stocks that could see trading interest today following their latest news, including Yinson Holdings Bhd , 99 Speed Mart Retail Holdings Bhd, Sealink International Bhd , Citaglobal Bhd , and Chin Well Holdings Bhd . Yinson has clarified that it is not in discussions with any third parties regarding a buyout exercise. However, the group said its executive chairman, Lim Han Weng, is currently engaged in 'exploratory discussions' with various parties concerning potential corporate proposals related to its shareholding. The Employees Provident Fund (EPF) has acquired a 5.02% stake in 99 Speed Mart through a direct off-market transaction. Citaglobal has appointed 27-year-old Tengku Muhammad Iskandar Ri'ayatuddin Shah (Tengku Arif Bendahara) as an independent and non-executive director. Tengku Arif Bendahara is the son of the Sultan of Pahang, Al-Sultan Abdullah Ri'ayatuddin Al-Mustafa Billah Shah. Sealink announced that access to its vessel, which was damaged by a fire in Brazil last month, remains restricted due to the current site conditions. As a result, the company said that a full on-site assessment of the vessel and the extent of the damage has been delayed. Overnight, the S&P 500 climbed 0.09% to end the session at 6,005.88 points. The Nasdaq gained 0.31% to 19,591.24 points, while the Dow Jones Industrial Average ended essentially unchanged at 42,761.76 points.
New Straits Times
09-06-2025
- Business
- New Straits Times
CIMB: Sales boost for 99 Speed Mart with longer hours
KUALA LUMPUR: 99 Speed Mart Retail Holdings Bhd is set to increase sales by standardising longer operating hours at all its outlets nationwide, said CIMB Securities Sdn Bhd. The firm noted that the extended hours will enhance customer convenience and drive higher revenue per outlet. "This will support our annual same-store sales growth forecast of 1.4 per cent for financial years 2025 to 2027 (FY25–27), with growth already tracking at 1.7 per cent in the first quarter of 2025," it said in a note. The mini-market operation recently announced that all its outlets nationwide will start opening earlier, from 9am to 10am daily, effective July 1. The move is in line with its goal of enhancing customer convenience and adapting to evolving shopping patterns. CIMB noted that about 80 per cent to 85 per cent of 99 Speed Mart's 2,883 outlets had already been following the revised operating hours for nearly a year. The recent announcement, it said, formalises the standardisation of these hours across all locations. "Assuming that 15 per cent to 20 per cent of the company's outlets will be positively affected by the one-hour extension to operating hours, we estimate a potential topline uplift of 1.0 per cent to 1.2 per cent in FY25–27," the firm added. CIMB Securities said it is maintaining its earnings per share forecasts for FY25–27, along with its "Buy" rating and target price of RM2.60 for 99 Speed Mart. The firm said the company's current premium price-to-earnings (P/E.) valuation of 32 times, compared to the consumer sector average of 28 times, is justified. This is supported by 99 Speed Mart's stronger earnings growth prospects with a three-year compound annual growth rate of 14.3 per cent from 2024 to 2027, a superior return on equity (ROE) of 32–34 per cent for FY25-27 and its dominant market share in Malaysia's mini-market retail segment. The firm noted that the downside risks include weaker-than-expected consumer sentiment, increased competition leading to weaker-than-expected sales and a sharp dip in gross profit margins due to a ramp-up in promotional activities or stiffer competition.
New Straits Times
05-06-2025
- Business
- New Straits Times
99 Speed Mart extends hours, opens at 9am from July 1
KUALA LUMPUR: 99 Speed Mart Retail Holdings Bhd has announced that its outlets nationwide will extend their operating hours, opening from 9am onwards effective July 1. In a statement today, the home-grown mini market chain retailer said this is in line with its commitment to enhance customer convenience and better align with shopping patterns. "This initiative reflects our dedication to elevating the customer experience while reinforcing our leadership position in the mini market retail space," said chief executive officer and founder Lee Thiam Wah. The announcement followed the company's second annual general meeting (AGM) held earlier today, during which all resolutions were approved by shareholders. The group said the audited financial statements for the financial year ended Dec 31, 2024, along with the directors and auditors report were presented and received by the shareholders. All incumbent directors standing for re-election were re-appointed and Messrs Crowe Malaysia PLT was re-appointed as the company's external auditor for the financial year ending Dec 31, 2025. Lee said the unanimous approval of the resolutions represents a strong endorsement of 99 Speed Mart's strategy and long-term vision. "As we look ahead, we remain focused on deepening our nationwide presence, strengthening our distribution network, and driving sustainable value creation for all stakeholders," he said.
New Straits Times
16-05-2025
- Business
- New Straits Times
99 Speed Mart's 1Q25 net profit rises to RM143mil
KUALA LUMPUR: 99 Speed Mart Retail Holdings Bhd's net profit for the first quarter ended March 31, 2025 (1Q 2025) rose to RM143.18 million from RM133.15 million in the same period last year. Revenue for the quarter under review increased to RM2.61 billion from RM2.43 billion previously, marking a 7.7 per cent rise, driven by the year-on-year expansion of 246 new outlets, bringing the total number of outlets to 2,833 as at March 31, 2025. In a filing with Bursa Malaysia today, the home improvement retailer said the higher revenue led to an 11.3 per cent increase in gross profit to RM314.5 million, accompanied by a slight improvement in the gross profit margin. "(This was) mainly due to the increase in promotional discounts and achievement of target incentives in the 1Q 2025," it said. On prospects, the group said it remains committed to promoting affordability and accessibility. "This commitment is reflected in our pricing strategies, carefully curated product selections, and strategic outlet placements, ensuring that everyday essentials remain within reach for all segments of the community. "Through this approach, we aim to enhance customer convenience and support cost-conscious households, while reinforcing our role as a trusted and inclusive retail brand," it said. The company said it is targeting the commencement of operations for a new distribution centre in Cyberjaya, Selangor, by the 2Q 2025. "With a built-up area of approximately 120,000 square feet, this facility is expected to support around 200 outlets in and around the Cyberjaya region, while further enhancing the distribution capacity of our bulk sales e-commerce platform," it said. The company also declared a first interim dividend of 2.25 sen per ordinary share, amounting to approximately RM189.0 million, in respect of the financial year ending Dec 31, 2025, payable on June 9, 2025.
