PETALING JAYA: 99 Speed Mart Retail Holdings Bhd
has reiterated in a recent investor meeting that its China venture remains a strategic pilot project rather than a meaningful earnings contributor, as the convenience retailer continues to focus on expanding its core Malaysian operations amid resilient consumer demand.
According to CIMB Research, the group expects to operate fewer than 10 stores in China over the next one to two years, with the venture aimed primarily at gaining operational experience rather than driving profits.
The research house said the stores in China are roughly half the size of its Malaysian outlets and carry around 20% fewer stock-keeping units, reflecting a more convenience-oriented retail format.
Moreover, the capital expenditure per China outlet is estimated at about 300,000 yuan, or approximately RM200,000, it said.
The firm reiterated its target of opening 250 net new stores annually between 2027 and 2031, supported by its expansion into northern Peninsular Malaysia, the East Coast, and Sabah and Sarawak.
