PETALING JAYA: 99 Speed Mart Retail Holdings Bhd
’s sales are expected to remain largely resilient, supported by steady demand for essential goods despite external headwinds.
The group is scheduled to release its first-quarter financial year 2026 (1Q26) results next week, with expectations of improved year-on-year and quarter-on-quarter earnings driven by store expansion and mid-single-digit same-store sales growth.
“In addition, we expect stronger other operating income, particularly from listing fees tied to the new stock-keeping unit introduced to cater for seasonal demand during Lunar New Year and Ramadan.
“We anticipate sequential margin improvement, underpinned by a more favourable product mix, as seasonal products typically carry higher margins,” said Affin Hwang Investment Bank Research.
The research house said while concerns over inflation and softer consumer spending had resurfaced following the Iran-US conflict, essential spending remained resilient in March.
“Although the impact may become more evident from April onwards, we believe food and beverage demand, particularly necessities, should remain relatively insulated.
“Against this backdrop, the impact on 99 Speed Mart’s sales is expected to be limited, underpinned by its exposure to essential consumption,” it said.
On the cost side, there has been no noticeable increase in logistics costs thus far, supported by 99 Speed Mart’s fleet card arrangements and sufficient subsidised fuel quotas.
Affin Hwang Research made no changes to its earnings forecast and maintained its “buy” rating with an unchanged discounted cash flow-based target price of RM4.41 a share, implying a 2027 price-to-earnings ratio of 39 times.
“We continue to like 99 Speed Mart for its core focus on essential products, in line with the ongoing essential spending trend, leadership position in the mini-market chain segment, resilient earnings track record and superior return on equity,’’ Affin Hwang Research said.
It noted that 4Q25 earnings declined quarter-on-quarter, coming off a high base in 3Q25, which was supported by the one-off Sumbangan Asas Rahmah (Sara) assistance programme for more than 22 million Malaysian adults.
“Looking ahead, we expect the impact from the latest one-off Sara allocation in 2026 to be more evenly distributed across quarters, as the programme runs for 10 months compared to only four months under Sara 2025,” it added.
