99 Speed Mart commands an estimated 40% share of the mini market segment and 10% to 12% of the broader grocery retail market.
PETALING JAYA: Mini market operator 99 Speed Mart Retail Holdings Bhd
stands out within the local consumer universe as a rare defensive growth retailer, combining national scale with a high-frequency, staples-led business model and rigorous operational discipline.
Unlike discretionary or destination-based retail formats, MBSB Research said in a report that the group’s proximity-driven mini market network embeds it directly into daily consumption patterns, allowing it to consistently capture footfall across economic cycles.
This structural advantage was evident in the third quarter of financial year 2025 (3Q25), with same-store sales growth of 11.9% year-on-year, supported by extended operating hours and participation in government programmes that reinforce both the resilience and scalability of the model.
In initiating a coverage on 99 Speed Mart, MBSB Research said: “Our investment case rests on three core structural strengths, namely an unmatched proximity-based retail moat, a highly scalable operating model, and a defensive earnings profile capable of steady compounding even in weaker consumption environments.”
The group also has a defensive earnings profile with steady compounding. Its product mix is overwhelmingly staples-driven, insulating volumes from discretionary pullbacks and economic volatility.
Over the medium term, this combination of resilience and scalability supports a predictable return profile, reinforced by strong operating cash flow, a historical net cash balance sheet, and continued reinvestment into network expansion and logistics capacity.
MBSB Research has a “buy” recommendation on the stock, with a target price of RM4.41 per share.
“We believe this premium valuation is justified by 99 Speed Mart’s unique positioning as Malaysia’s largest and most scaled grocery-based mini market operator, operating in a defensive, non-discretionary retail segment with visible and durable growth drivers,” it noted.
99 Speed Mart commands an estimated 40% share of the mini market segment and 10% to 12% of the broader grocery retail market, supported by a nationwide network approaching 3,000 outlets, with disciplined plans to add about 250 stores annually.
Its positive view is anchored on 99 Speed Mart’s scale-driven cost advantage, high-frequency staples-led demand, and a replicable, infrastructure-backed expansion model, which together deliver consistent earnings compounding with low volatility.
For 3Q25, 99 Speed Mart posted RM3.04bil in revenue, higher than the RM2.55bil recorded in the same quarter last year. Net profit increased 49.9% to RM160.65mil from RM107.16mil a year ago.
For the nine-month period, the group registered a cumulative revenue of RM8.36bil, an increase of 13% compared with the same period last year. Net profit stood at RM457.04mil.
It also declared a second interim dividend of two sen per ordinary share, amounting to RM168mil, and a special interim dividend of 0.25 sen per ordinary share, amounting to RM21mil, in respect of the financial year ending Dec 31, 2025.
