KUALA LUMPUR: Newly listed Teamstar Bhd plans to expand its footprint by opening 10 additional retail outlets in Malaysia by 2028 on top of its existing 29 nationwide.
Chief financial officer Tan Jian Wei said the home improvement industry player intends to open three to four new outlets annually starting this year, with a focus on Johor Baru, Penang and Kedah.
“Penang is a new retail market for us as we have yet to establish a store there, although we already have a warehouse in the state.
“Besides expansion, we also plan to upgrade some of our existing outlets to incorporate showroom concepts.
“These will serve as showroom-cum-retail stores to showcase mock-ups of our brands and products, including authorised third-party brands for kitchen and living spaces,” he said after the company’s listing ceremony yesterday.
The Malaysia-based retailer and trader of furniture fittings, hardware and home appliances made its debut on the ACE Market of Bursa Malaysia at 26 sen a share, the same as its initial public offering (IPO) price, with 16.70 million shares traded.
At 5pm, the company fell 9.62%, or 2.5 sen, to 23.5 sen. It was the second most active counter on Bursa Malaysia, with 80.22 million shares traded.
Tan also said the company is planning to establish a megastore in its main operating area, namely Puchong, Selangor, where it will consolidate a lot of Teamstar’s products in one big area of around 3,000 to 4,000 sq ft.
“For the megastore, we are looking at a timeline beyond three years. We will assess market feedback and adjust our plans accordingly,” he said.
The company also aims to open two more warehouses, expected either this year or next.
In addition, he noted, the company is expected to leverage opportunities arising from the Johor-Singapore Special Economic Zone (JS-SEZ), particularly as the Johor region becomes more developed, coupled with robust development in property and refurbishment activities in Johor Baru driven by the JS-SEZ initiative.
Tan said the company remains comfortable with its current leverage level, noting that its gearing ratio is below 0.3 times and supported by its strong cash-generating position. — Bernama
