Latest news with #Eco-ShopMarketingBhd
New Straits Times
26-05-2025
- Business
- New Straits Times
Eco-Shop slips on second trading day after upbeat debut
KUALA LUMPUR: Eco-Shop Marketing Bhd saw its share price dip in early trade on its second day of listing on the Main Market of Bursa Malaysia, falling 4.17 per cent to RM1.15 as of 10.08am. The counter opened at RM1.19, its intraday high so far and already below last Friday's closing price of RM1.20, before retreating to RM1.15, the morning's low at press time. This came after the discount retailer defied market expectations with a solid debut at the end of last week. The initial public offering (IPO) was priced at RM1.13 per share. With 19.61 million shares changing hands, Eco-Shop was the third most actively traded stock on Bursa Malaysia this morning. At RM1.15 per share, the company's market capitalisation stood at RM6.61 billion. Whether the stock can regain ground remains to be seen, but its weaker showing likely reflects broader market jitters and fragile sentiment amid global uncertainties. Eco-Shop's listing came amid a stretch of subdued IPO debuts, with most counters closing below their offer price on the first day of trade. Its first-day performance bucked a recent trend in which many new Main Market listings struggled to hold above their IPO prices. Between March and May, most Main Market IPOs recorded either negative or modest first-day gains, except for Reach Ten Holdings Bhd and Hi Mobility Bhd, amid cautious investor sentiment. Eco-Shop's IPO, Malaysia's largest in eight months, raised RM974 million in total. The company plans to channel the proceeds into expanding its retail and distribution footprint, repaying borrowings and upgrading its information technology infrastructure. Founded in 2003, Eco-Shop operates 349 outlets across Malaysia as of March 2025, offering everyday items such as snacks, kitchenware and household essentials. The brand is known for its fixed pricing model, RM2.60 in West Malaysia and RM2.80 in East Malaysia, which has resonated with price-sensitive consumers.
The Sun
23-05-2025
- Business
- The Sun
Eco-Shop Marketing targets 15-20% revenue, Patami growth in 2025
KUALA LUMPUR: Eco-Shop Marketing Bhd is targeting growth of 15%–20% in revenue and profit after tax and minority interest (Patami) in 2025, supported by business volume and consumer demand, despite recent price adjustments. Chief financial officer Chong Yew Kai said the company observed no negative reaction when it raised product entry prices from RM2.40 to RM2.60 last month. 'In terms of not only revenue but also Patami, we are looking at 15% to 20% of growth year-on-year. Last round we had this price increase in 2022. So similar trends. Things are moving as per our expectation,' he told a press conference after the company's listing on the Main Market of Bursa Malaysia today. CEO Jessica Ng said the listing marks a new chapter for the household products retailer, enabling it to scale growth and strengthen its market position. 'With enhanced capital, we are now better positioned to expand our nationwide footprint, strengthen our warehousing and distribution capabilities, and invest in technology to enhance operations and customer experience – all while staying true to our promise of delivering unbeatable everyday value.' She said Eco-Shop's business model is built on high volume and scale, which enables it to achieve operational efficiency while keeping prices ultra-affordable. Ng noted that about 75% of the company's products are house brands, many of which are custom-packaged in smaller quantities to maintain affordability and variety. 'We buy in bulk and break them down into smaller packs – like our sachet drinks – making them more accessible to our customers. Our focus remains on daily essentials and basic home living needs.' To enhance customer experience, Ng said, Eco-Shop has refreshed its store image and layout to provide a more comfortable and enjoyable shopping environment. Eco-Shop plans to open 70 new stores annually, including five to six outlets under its Ecoplus brand, a premium retail concept aimed at urban markets and located in shopping malls. Ecoplus offers an expanded range of products beyond the standard RM2.60 price point, with options priced at RM6, RM10 and RM20. Ng said the company is open to future expansion into the Asean market, although its current focus remains on Malaysia. 'The dollar shop segment is still relatively new in Asia. Outside of mature markets like the US and Japan, there's a lot of room to grow. We're the first in this segment to list, and if the opportunity arises, we will evaluate it.' Eco-Shop made its debut on the Main Market at RM1.25 with a 12 sen premium over its initial public offering (IPO) price of RM1.13, with 25 million shares traded. It closed at RM1.20, up 6.19% from its IPO price, with over 209 million shares changing hands, making it one of the most actively traded counters. The IPO raised RM419.87 million for Eco-Shop, whichhas allocated RM56.27 million (13.4%) to accelerate the expansion of its retail footprint nationwide, RM200 million (47.6%) to expand its distribution centres, RM10.90 million (2.6%) for investment in information technology hardware and software, RM100 million (23.8%) to repay bank borrowings and RM52.7 million (12.6%) for working capital purposes and to defray the cost of the IPO and listing. Eco-Shop's Patami has grown at a compounded annual growth rate of 156% over the last three financial years from May 31, 2022 to 2024. The company recently reported Patami growth of 36% year-on-year for the nine months ended Feb 28, 2025. Maybank Investment Bank Bhd is the principal adviser, joint global coordinator, joint bookrunner and sole underwriter for the IPO. UBS Securities Malaysia Sdn Bhd and UBS AG, Singapore branch, are joint global coordinators and Joint bookrunners, while RHB Investment Bank is also a joint bookrunner.
New Straits Times
23-05-2025
- Business
- New Straits Times
Eco-Shop positive about performance despite price hike
KUALA LUMPUR: Household retailer Eco-Shop Marketing Bhd remains optimistic about its performance despite hiking up product prices to RM2.60 from RM2.40 last month. Its chief financial officer Chong Yew Kai said the company raised prices to RM2.40 from RM2.20 in 2022 and saw no negative market reaction. "I see no changes in company performance (after the price increase), it was as per our expectation. So, we are not seeing any different kind of market reaction. "Of course, (we are in) a transition period (now). Moving forward, we are looking at a very strong performance," he told a press conference after today's listing. Recently, Eco-Shop posted a higher net profit of RM61.72 million for the third quarter of its financial year ending Feb 28, 2025 (3Q FY2025), compared to RM42.57 million in the same period a year ago. The revenue increased 17.2 per cent to RM736.35 million in 3Q FY2025 from RM628.41 million previously, driven by the expansion of the group's store network with the opening of 26 new outlets, bringing the total number of stores to 349 in 3Q FY2025 from 278 in 3Q FY2024. Meanwhile, Eco-Shop chief executive officer and executive director Jessica Ng said the company would evaluate their opportunities to venture into the ASEAN market in the future, as the dollar shop segment in the region is still new. Dollar shops offer a wide range of products at fixed, low prices and typically carry daily items like household goods, snacks, and personal care products, and may also include items like stationery and hardware. However, she said the group would likely focus their business expansion in Malaysia for now, so that more Malaysians would have access to affordable products. As of today, Eco-Shop has 358 stores in Malaysia, comprising 336 Eco-Shop stores and 22 Eco-Plus stores. Today, Eco-Shop debuted on the Main Market of Bursa Malaysia at RM1.25, a premium of 12 sen from its initial public offering (IPO) price of RM1.13, with 25 million shares traded. Under its listing exercise, the company had raised RM419.87 million, where RM200 million or 51 per cent would be utilised for distribution centre expansion, RM56.27 million (14.4 per cent) for new store opening, and RM8.52 million (2.2 per cent) for IT hardware and software. "RM100 million or 25.5 per cent would be utilised to repay bank borrowings, and RM27.32 million (7.0 per cent) for IPO and listing expenses," it said. At 5 pm, Eco-Shop closed the day trading at RM1.20, seven sen higher than its issue price of RM1.13, with the company also emerging as the most active stock for the day with 209.16 million shares changing hands.
The Star
23-05-2025
- Business
- The Star
Eco-Shop rises 10% in Main Market debut
KUALA LUMPUR: The trading stock of Eco-Shop Marketing Bhd rose 10.62% from its initial public offering (IPO) price as trading of its shares commenced on the Main Market of Bursa Malaysia on Friday. Shares in the dollar-store retailer put on 12 sen to RM1.25 and charted at the top of the most actively traded counters on Bursa Malaysia. At the time of writing (9.25am), the share was trading seven sen higher at RM1.20 after 87.64 million shares done. Creador-backed Eco-Shop's IPO was the largest in Malaysia over the last eight months - raising RM419.87mil from the public issue of 347 million new shares. It plans to allocate RM56.27mil (13.4%) of the IPO proceeds to the expansion of its retail footprint nationwide, and another RM200mil (47.6%) to expand its distribution centres. Another RM10.9mil will be invested in information technology hardware and software. Of the remainder, RM100mil (23.8%) will be used to repay bank borrowings and RM52.7mil (12.6%) for working capital purposes and to defray the cost of the IPO and listing. According to an IPO note by Rakuten Trade, Eco-Shop's aggressive expansion plan in the next two to three years is expected to raise net profit to RM200.4mil and RM246.5mil in FY5/25 and FY5/26 respectively, "We peg a fair value of RM1.20 based on 28x PER (similar to its regional peers with similar scale) over FY5/26 EPS," it said. UOB Kay Hian, meanwhile initiated coverage on the stock with a "buy" call and target price of RM1.45. "Eco-Shop, Malaysia's most established fixed-price retailer, offers a compelling three-year earnings CAGR (FY24-27) of 17.7% which is unrivalled relative to that of its large-cap retail peers. "The earnings growth is underpinned by expansion off a long growth runway coupled with robust organic and resilient demand owing to its unique business model that offers affordability yet captures higher-margin discretionary purchases," it added.
New Straits Times
23-05-2025
- Business
- New Straits Times
Eco-Shop opens higher on Main Market debut, bucking recent IPO trend
KUALA LUMPUR: Eco-Shop Marketing Bhd made a strong debut on Bursa Malaysia's Main Market, opening at RM1.25, a 12 sen or 10. per cent premium over its initial public offering (IPO) price of RM1.13. The counter was the most actively traded stock at market open, with over 25 million shares changing hands. The listing, which raised RM392.11 million, is Malaysia's largest IPO in the past nine months. Eco-Shop is the 22nd company to list on Bursa this year, standing out against a backdrop of subdued first-day performances from recent IPOs, particularly since Pantech Global Bhd's debut on March 3. The listing brings the fixed-price retail chain's market capitalisation to RM6.49 billion based on the IPO price. At the opening price of RM1.25, Eco-Shop's market capitalisation rose to about RM7.18 billion. Founded in 2003, Eco-Shop operates 349 outlets across Malaysia as of March 2025, offering everyday items such as snacks, kitchenware and household essentials. The brand is known for its fixed pricing model, RM2.60 in West Malaysia and RM2.80 in East Malaysia, which has resonated with price-sensitive consumers. The company plans to open 70 new stores this year, representing a 19.6 per cent expansion in its store network, outpacing Mr DIY's 12.9 per cent and 99 Speed Mart's 5.9 per cent, according to a report. Proceeds from the IPO will fund the construction of a semi-automated distribution centre in Klang and support new store openings. In its latest quarterly results ended Feb 28, 2025, Eco-Shop reported a 45 per cent year-on-year increase in net profit to RM61.72 million, while revenue rose 17.2 per cent to RM736.35 million.
