PETALING JAYA: 99 Speed Mart Retail Holdings Bhd
’s growth prospects remain solidly positive, supported by steady outlet expansion, strong market positioning, and an increased Sumbangan Asas Rahmah (Sara) initiative budget, analysts say.
The company announced its results for the fourth quarter of the financial year 2025 (4Q25) last Friday, largely meeting analysts’ expectations with robust sales growth and margin expansion.
MBSB Research said 99 Speed Mart’s 4Q25 revenue rose 19% year-over-year (y-o-y) to RM3.08bil, on the back of continued outlet expansion, stronger consumer spending on daily essentials, and solid same-store sales growth (SSSG) of 11.6% y-o-y.
“On a full-year basis, financial year 2025 revenue grew 14.6% y-o-y to RM11.43bil, underpinned by new store contributions and incremental sales from its bulk eCommerce platform,” it said.
Meanwhile, the company’s 4Q25 core profit after tax and minority interests outpaced revenue in growth, rising 22.2% y-o-y to RM159.8mil.
MBSB Research attributed this earnings growth to stronger gross profit expansion and improved operating leverage from higher sales volumes and outlet expansion.
“The quarter was supported by positive contributions from new outlets, steady basket size improvement, other operating income growth and increasing traction from its bulk sales eCommerce platform, while margins remained stable despite higher operating costs from minimum wage adjustments and outlet additions.”
The research house has maintained its “buy” call on the stock and its target price of RM4.41.
It reiterated its positive stance on 99 Speed Mart, given its scale-driven cost advantage, staples-focused demand profile and disciplined rollout of around 250 outlets annually.
MBSB Research said the company’s “near ’n save” value positioning keeps it well-aligned with resilient mass-market spending currently being upheld by stable employment and ongoing fiscal assistance.
“Continued network densification, logistics optimisation and positive SSSG should sustain operating leverage, while expansion of its bulk sales platform offers incremental growth upside,” it said.
RHB Research had a more cautiously optimistic outlook on 99 Speed Mart’s stock, maintaining its “neutral” recommendation with a new target price of RM4.02, down from RM4.06.
“Whilst we acknowledge its strategic market position to capitalise on government fiscal support programmes and capture the steady consumer spending, the positives may have been priced in,” the research house said.
Nevertheless, it said the company’s established position in the market and brand equity make it well poised to benefit from the fiscal policy to increase budget allocation for Sara in 2026.
It added that 99 Speed Mart now has over 2,000 outlets activated for Sara, and is aiming to add more.
Rising disposable incomes of lower-income groups, as well as inflationary pressures causing downtrading consumption trends, are expected to be positive for the company, due to its extensive store network and preference among consumers for grocery shopping in mini-markets.
“We believe earnings growth over a longer term will also be sustained by 99 Speed Mart’s strategies to expand its addressable markets,” RHB Research said.
“These include diversifying its sourcing options to enhance product offerings, developing its bulk sales platform, and expanding beyond Malaysia.”
