Latest news with #Eco-ShopMarketingBhd
The Star
11-07-2025
- Business
- The Star
Deloitte: Malaysia leads Southeast Asia in IPO performance for 1H25
KUALA LUMPUR: Malaysia emerged at the top of the leaderboard for Southeast Asia's initial public offering (IPO) capital market with 66 per cent or US$940 million (US$1=RM4.24) raised across Southeast Asia during the first half of 2025 (1H 2025), according to the Deloitte Mid-Year IPO Snapshot 2025 report. The report highlighted that Malaysia's IPO capital market continued its impressive momentum from last year, leading the Southeast Asia bourses in all three key metrics: total IPO funds raised, market capitalisation and number of IPOs. In a statement today, Deloitte said household brand Eco-Shop Marketing Bhd led the IPO amount raised by Malaysia at US$230 million, and its share price rose six per cent on its first day on the Main Market of Bursa Malaysia. "With 32 IPOs in the 1H 2025, Malaysia has six top-10 listings in the region in 2025. It has the largest IPO listing in Southeast Asia thus far - a dollar store chain that raised US$230 million. "Malaysia recorded approximately 48 per cent increase in the number of listings, with IPO amount raised increasing by approximately 109 per cent, along with a corresponding uptick in total IPO market capitalisation by approximately 165 per cent," it said. According to the Deloitte report, the Southeast Asia capital market recorded 53 IPOs in 1H 2025, raising over US$1.4 billion in IPO proceeds and achieving US$7.7 billion in IPO market capitalisation. "This compares to 67 IPOs in 1H 2024, which raised under US$1.4 billion with over US$5.8 billion in market capitalisation," it said. Deloitte Malaysia Transactions Accounting Support partner Wong Kar Choon said the IPO outlook in Malaysia remains optimistic for the remainder of 2025, with 32 listings recorded as of June 30, 2025, putting Bursa Malaysia on track to meet its full-year target of 60 listings. "However, the recent US trade tariffs and geopolitical tension have introduced uncertainty, and we foresee that there could be an impact on the IPO market. "This situation may lead to cautious investor sentiments as investors may adopt a more cautious approach and favour less risky assets during these uncertain periods," he said. Wong added that companies might delay their IPO plans, especially for export-driven companies that are affected by supply chain disruptions and cost pressures. - Bernama
The Star
07-07-2025
- Business
- The Star
Eco-Shop expected to weather cost pressures
PETALING JAYA: Retailer Eco-Shop Marketing Bhd is set for a solid performance for its financial year ending May 31, 2026 (FY26), analysts say. This will be supported by its three-year compound annual growth rate (CAGR) in profit of 17.7% as well as its defensive positioning amid multiple emerging headwinds, said UOB Kay Hian Research (UOBKH Research). In a report on the retailer, the research house said Eco-Shop's profitability outlook remains intact despite cost pressures from the higher minimum wage, Employees Provident Fund (EPF) contributions for foreign workers, electricity tariffs and an expanded 8% sales and service tax on commercial rents. 'While most of these individual increases are not material to Eco-Shop's earnings, the combined impact is estimated at RM40mil annually, or about 7.6% of FY26's earnings before interest, tax, depreciation and amortisation,' the research house stated. UOBKH Research said that in order for the group to mitigate the impact of costs, it had raised its fixed pricing from RM2.40 to RM2.60 in April. This effort mirrors its 2022 strategy, when a similar adjustment led to a short-term drop in foot traffic before recovering within two months. UOBKH Research expects a similar trend to play out with the company's same-store sales growth (SSSG) rebounding into double digits in FY26. This will be supported by a planned store revamp. While the fourth quarter of FY25 (4Q25) may record flattish SSSG and sequentially softer earnings to RM62.3mil due to the immediate impact of the price change and Ramadan-related seasonality, full-year earnings are expected to meet projections. Additionally, the research house stated that the group's aggressive store expansion further supports growth. The group had exceeded its target with over 80 new stores opened in FY25. 'The abundance of premises and its growth off a low base have firmly positioned Eco-Shop to achieve its target of 70 new stores annually over the medium term. We also gather that it has already largely secured its sites for FY26,' it added. UOBKH Research made no changes to its earnings estimates on Eco-Shop and maintained a 'buy' call on the retailer with a target price of RM1.45 a share. 'Despite multiple headwinds, we expect Eco-Shop's earnings outlook to remain firmly intact,' it stated, adding that the projected three-year CAGR of 17.7% from FY24 to FY27 is nearly double than that of its peers 99 Speed Mart Retail Holdings Bhd and MR DIY Group (M) Bhd . The research house also said it valued Eco-Shop at 34.5 times FY26 earnings, placing it between 99 Speedmart and MR DIY in terms of growth and valuation appeal.
New Straits Times
26-05-2025
- Business
- New Straits Times
Eco-Shop slips on second trading day after upbeat debut
KUALA LUMPUR: Eco-Shop Marketing Bhd saw its share price dip in early trade on its second day of listing on the Main Market of Bursa Malaysia, falling 4.17 per cent to RM1.15 as of 10.08am. The counter opened at RM1.19, its intraday high so far and already below last Friday's closing price of RM1.20, before retreating to RM1.15, the morning's low at press time. This came after the discount retailer defied market expectations with a solid debut at the end of last week. The initial public offering (IPO) was priced at RM1.13 per share. With 19.61 million shares changing hands, Eco-Shop was the third most actively traded stock on Bursa Malaysia this morning. At RM1.15 per share, the company's market capitalisation stood at RM6.61 billion. Whether the stock can regain ground remains to be seen, but its weaker showing likely reflects broader market jitters and fragile sentiment amid global uncertainties. Eco-Shop's listing came amid a stretch of subdued IPO debuts, with most counters closing below their offer price on the first day of trade. Its first-day performance bucked a recent trend in which many new Main Market listings struggled to hold above their IPO prices. Between March and May, most Main Market IPOs recorded either negative or modest first-day gains, except for Reach Ten Holdings Bhd and Hi Mobility Bhd, amid cautious investor sentiment. Eco-Shop's IPO, Malaysia's largest in eight months, raised RM974 million in total. The company plans to channel the proceeds into expanding its retail and distribution footprint, repaying borrowings and upgrading its information technology infrastructure. Founded in 2003, Eco-Shop operates 349 outlets across Malaysia as of March 2025, offering everyday items such as snacks, kitchenware and household essentials. The brand is known for its fixed pricing model, RM2.60 in West Malaysia and RM2.80 in East Malaysia, which has resonated with price-sensitive consumers.
The Sun
23-05-2025
- Business
- The Sun
Eco-Shop Marketing targets 15-20% revenue, Patami growth in 2025
KUALA LUMPUR: Eco-Shop Marketing Bhd is targeting growth of 15%–20% in revenue and profit after tax and minority interest (Patami) in 2025, supported by business volume and consumer demand, despite recent price adjustments. Chief financial officer Chong Yew Kai said the company observed no negative reaction when it raised product entry prices from RM2.40 to RM2.60 last month. 'In terms of not only revenue but also Patami, we are looking at 15% to 20% of growth year-on-year. Last round we had this price increase in 2022. So similar trends. Things are moving as per our expectation,' he told a press conference after the company's listing on the Main Market of Bursa Malaysia today. CEO Jessica Ng said the listing marks a new chapter for the household products retailer, enabling it to scale growth and strengthen its market position. 'With enhanced capital, we are now better positioned to expand our nationwide footprint, strengthen our warehousing and distribution capabilities, and invest in technology to enhance operations and customer experience – all while staying true to our promise of delivering unbeatable everyday value.' She said Eco-Shop's business model is built on high volume and scale, which enables it to achieve operational efficiency while keeping prices ultra-affordable. Ng noted that about 75% of the company's products are house brands, many of which are custom-packaged in smaller quantities to maintain affordability and variety. 'We buy in bulk and break them down into smaller packs – like our sachet drinks – making them more accessible to our customers. Our focus remains on daily essentials and basic home living needs.' To enhance customer experience, Ng said, Eco-Shop has refreshed its store image and layout to provide a more comfortable and enjoyable shopping environment. Eco-Shop plans to open 70 new stores annually, including five to six outlets under its Ecoplus brand, a premium retail concept aimed at urban markets and located in shopping malls. Ecoplus offers an expanded range of products beyond the standard RM2.60 price point, with options priced at RM6, RM10 and RM20. Ng said the company is open to future expansion into the Asean market, although its current focus remains on Malaysia. 'The dollar shop segment is still relatively new in Asia. Outside of mature markets like the US and Japan, there's a lot of room to grow. We're the first in this segment to list, and if the opportunity arises, we will evaluate it.' Eco-Shop made its debut on the Main Market at RM1.25 with a 12 sen premium over its initial public offering (IPO) price of RM1.13, with 25 million shares traded. It closed at RM1.20, up 6.19% from its IPO price, with over 209 million shares changing hands, making it one of the most actively traded counters. The IPO raised RM419.87 million for Eco-Shop, whichhas allocated RM56.27 million (13.4%) to accelerate the expansion of its retail footprint nationwide, RM200 million (47.6%) to expand its distribution centres, RM10.90 million (2.6%) for investment in information technology hardware and software, RM100 million (23.8%) to repay bank borrowings and RM52.7 million (12.6%) for working capital purposes and to defray the cost of the IPO and listing. Eco-Shop's Patami has grown at a compounded annual growth rate of 156% over the last three financial years from May 31, 2022 to 2024. The company recently reported Patami growth of 36% year-on-year for the nine months ended Feb 28, 2025. Maybank Investment Bank Bhd is the principal adviser, joint global coordinator, joint bookrunner and sole underwriter for the IPO. UBS Securities Malaysia Sdn Bhd and UBS AG, Singapore branch, are joint global coordinators and Joint bookrunners, while RHB Investment Bank is also a joint bookrunner.
New Straits Times
23-05-2025
- Business
- New Straits Times
Eco-Shop positive about performance despite price hike
KUALA LUMPUR: Household retailer Eco-Shop Marketing Bhd remains optimistic about its performance despite hiking up product prices to RM2.60 from RM2.40 last month. Its chief financial officer Chong Yew Kai said the company raised prices to RM2.40 from RM2.20 in 2022 and saw no negative market reaction. "I see no changes in company performance (after the price increase), it was as per our expectation. So, we are not seeing any different kind of market reaction. "Of course, (we are in) a transition period (now). Moving forward, we are looking at a very strong performance," he told a press conference after today's listing. Recently, Eco-Shop posted a higher net profit of RM61.72 million for the third quarter of its financial year ending Feb 28, 2025 (3Q FY2025), compared to RM42.57 million in the same period a year ago. The revenue increased 17.2 per cent to RM736.35 million in 3Q FY2025 from RM628.41 million previously, driven by the expansion of the group's store network with the opening of 26 new outlets, bringing the total number of stores to 349 in 3Q FY2025 from 278 in 3Q FY2024. Meanwhile, Eco-Shop chief executive officer and executive director Jessica Ng said the company would evaluate their opportunities to venture into the ASEAN market in the future, as the dollar shop segment in the region is still new. Dollar shops offer a wide range of products at fixed, low prices and typically carry daily items like household goods, snacks, and personal care products, and may also include items like stationery and hardware. However, she said the group would likely focus their business expansion in Malaysia for now, so that more Malaysians would have access to affordable products. As of today, Eco-Shop has 358 stores in Malaysia, comprising 336 Eco-Shop stores and 22 Eco-Plus stores. Today, Eco-Shop debuted on the Main Market of Bursa Malaysia at RM1.25, a premium of 12 sen from its initial public offering (IPO) price of RM1.13, with 25 million shares traded. Under its listing exercise, the company had raised RM419.87 million, where RM200 million or 51 per cent would be utilised for distribution centre expansion, RM56.27 million (14.4 per cent) for new store opening, and RM8.52 million (2.2 per cent) for IT hardware and software. "RM100 million or 25.5 per cent would be utilised to repay bank borrowings, and RM27.32 million (7.0 per cent) for IPO and listing expenses," it said. At 5 pm, Eco-Shop closed the day trading at RM1.20, seven sen higher than its issue price of RM1.13, with the company also emerging as the most active stock for the day with 209.16 million shares changing hands.
