Latest news with #RM2.40
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.
New Straits Times
29-04-2025
- Business
- New Straits Times
Eco-Shop confident ahead of main market debut with RM420mil IPO
PETALING JAYA: Eco-Shop Marketing Bhd, which is en route to a listing on the Main Market of Bursa Malaysia Securities Bhd, remains confident in its prospects as underpinned by strong fundamentals despite uncertainties in market sentiment and the economy. Eco-Shop said its initial public offering (IPO) is set to be the largest IPO to be launched in the past eight months, with an estimated RM419.87 million to be raised through the public issuance of 347 million new shares, based on the IPO retail price of RM1.21 per share. The company will also offer 675.37 million shares to institutional investors at a price to be determined through a book-building process, it said in a statement. The IPO has secured ten investors acting as cornerstone investors, who collectively subscribed for 90.91 million shares or 90.31 per cent of the institutional offering, the firm said. Its chief executive officer and executive director Jessica Ng said that global market uncertainties have undoubtedly impacted both investor and consumer sentiment. However, she said Eco-Shop remains optimistic that its value proposition is timely and well-suited to the current environment. "Market forces are definitely one of the factors that we take into consideration (for listing). "However, in this tough situation (with market uncertainties), a business model like ours is even more needed. (Looking at the US tariffs) and the rising cost, we are very ultra-affordable," she told reporters during the press conference today, in conjunction with the launch of the IPO prospectus. She said Eco-Shop has consistently proven its business strength over the years, with strong sourcing capabilities and a competitive edge in bulk purchasing. "We also have solid operations and infrastructure, and the ability to buy in volume and repackage products into smaller sizes," she added. Eco-Shop's listing on the Main Market is set for May 23, 2025. In response to a question about the product price hike, Ng explained that the rise from RM2.40 to RM2.60 (starting April 14) was due to the increase in the minimum wage, but she emphasised that most of its workers fall within the B40 income group. "The majority of EcoShop employees are under the B40 group. So, we will have to make this adjustment to help our employees as well. "While the basic pay is RM1,700, Eco-Shop pays a basic wage of RM1,800. So, the decision was made as we have to balance between taking care of the stakeholders in the right way," she said. Meanwhile, commenting on the IPO proceeds utilisation, Ng said Eco-Shop has allocated RM56.27 million (13.4 per cent) to accelerate the expansion of its retail footprint nationwide and RM200 million (47.6 per cent) to expand its distribution centres. She added that RM10.90 million (2.6 per cent) is earmarked for investment in information technology hardware and software, RM100 million (23.8 per cent) towards repaying bank borrowings, and RM52.70 million (12.6 per cent) for working capital purposes and defraying the costs of the IPO and listing. "We are targeting 70 stores per year for the next five years, and currently, the under-penetrated market will be the Klang Valley as well as East Malaysia.
The Sun
26-04-2025
- Business
- The Sun
Johor vendor slammed for ‘ruining market' with RM3.90 burgers instead of RM5, netizens clash
IN a move that left fellow vendors fuming, a burger stall in Kulai, Johor, has been slammed for offering crispy chicken burgers at an eye-catching price of RM3.90, well below the local market rate of RM5. While the affordable price was welcomed by many customers, who saw it as a relief during tough financial times, some vendors were not pleased. The low pricing quickly sparked a heated debate about market competition and sustainability within the local food scene. ALSO READ: No Good Burger: Customer shares disappointing burger with 'no patty, just breading' The controversy erupted after the Kulai-based burger stall went viral on social media. One particularly disgruntled seller decided to confront the RM3.90 vendor directly, sending an angry message that read: 'Oi bro, don't ruin the market! You think you're the only one doing business and slashing prices like this? The market rate for burgers is RM5, be reasonable. Don't come to Kulai and mess things up.' The upset vendor felt that such drastic price cuts could upset the balance and affect the livelihoods of other sellers in the area. In response, the budget burger seller maintained a calm and composed stance, explaining his business approach and the rationale behind his pricing. He said: 'I'm not ruining the market. I just have a good supply chain, which lets me get cheaper ingredients.' He further elaborated: 'If you can get your supplies at a lower cost, why wouldn't you pass on the savings to your customers?' Despite the explanation, tensions remained high. The rival vendor was not convinced and reiterated his concern, warning that the low price could hurt other burger sellers. Netizens flooded the comment sections, with some expressing support for the affordable pricing, while others sided with the upset vendors, warning of the potential harm to the local market. 'Bro, you put up a huge banner saying, ''Promo, promo... crispy chicken burger RM3.90 only (normal price: RM5.00)'. Automatically people won't go to his shop,' one user called zackxgaming99 commented jokingly. 'True, the market price should be maintained. How about you change your strategy? Keep the price at RM5 per burger, but offer a promo like 'buy 2, get a discount,' so two burgers for RM8,' mynameisarap suggested. Omar_haziq_ questioned: 'Since when is there a 'market price'? Eco sells a 1250ml mineral spritzer for RM5, Aeon sells it for RM3.15, and Speedmart sells it for RM2.40. I buy from Speedmart because it's cheaper. Why should I care about the expensive ones? 'What's all this talk about a 'market price'? If you're in business, you set your own prices—why follow what others are doing?' To this, aliefndy replied, 'Bro, you can't compare with companies that make millions a year. Small vendors like us have to keep an eye on the market price too, so it doesn't devalue our products.'
Yahoo
01-04-2025
- Business
- Yahoo
Calculating The Fair Value Of Hap Seng Plantations Holdings Berhad (KLSE:HSPLANT)
Using the 2 Stage Free Cash Flow to Equity, Hap Seng Plantations Holdings Berhad fair value estimate is RM2.36 Hap Seng Plantations Holdings Berhad's RM1.96 share price indicates it is trading at similar levels as its fair value estimate Analyst price target for HSPLANT is RM2.40, which is 1.6% above our fair value estimate Today we will run through one way of estimating the intrinsic value of Hap Seng Plantations Holdings Berhad (KLSE:HSPLANT) by taking the expected future cash flows and discounting them to their present value. We will use the Discounted Cash Flow (DCF) model on this occasion. Believe it or not, it's not too difficult to follow, as you'll see from our example! Remember though, that there are many ways to estimate a company's value, and a DCF is just one method. If you still have some burning questions about this type of valuation, take a look at the Simply Wall St analysis model. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. We are going to use a two-stage DCF model, which, as the name states, takes into account two stages of growth. The first stage is generally a higher growth period which levels off heading towards the terminal value, captured in the second 'steady growth' period. To start off with, we need to estimate the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. Generally we assume that a dollar today is more valuable than a dollar in the future, and so the sum of these future cash flows is then discounted to today's value: 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Levered FCF (MYR, Millions) RM141.3m RM123.3m RM113.8m RM108.9m RM106.8m RM106.5m RM107.5m RM109.3m RM111.8m RM114.8m Growth Rate Estimate Source Analyst x1 Analyst x1 Est @ -7.69% Est @ -4.30% Est @ -1.93% Est @ -0.27% Est @ 0.89% Est @ 1.70% Est @ 2.27% Est @ 2.67% Present Value (MYR, Millions) Discounted @ 8.3% RM130 RM105 RM89.5 RM79.1 RM71.6 RM65.9 RM61.3 RM57.6 RM54.3 RM51.5 ("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = RM766m We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period. For a number of reasons a very conservative growth rate is used that cannot exceed that of a country's GDP growth. In this case we have used the 5-year average of the 10-year government bond yield (3.6%) to estimate future growth. In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 8.3%. Terminal Value (TV)= FCF2034 × (1 + g) ÷ (r – g) = RM115m× (1 + 3.6%) ÷ (8.3%– 3.6%) = RM2.5b Present Value of Terminal Value (PVTV)= TV / (1 + r)10= RM2.5b÷ ( 1 + 8.3%)10= RM1.1b The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is RM1.9b. The last step is to then divide the equity value by the number of shares outstanding. Compared to the current share price of RM2.0, the company appears about fair value at a 17% discount to where the stock price trades currently. Remember though, that this is just an approximate valuation, and like any complex formula - garbage in, garbage out. We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows. Part of investing is coming up with your own evaluation of a company's future performance, so try the calculation yourself and check your own assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Hap Seng Plantations Holdings Berhad as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 8.3%, which is based on a levered beta of 0.800. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. View our latest analysis for Hap Seng Plantations Holdings Berhad Strength Earnings growth over the past year exceeded the industry. Currently debt free. Dividends are covered by earnings and cash flows. Dividend is in the top 25% of dividend payers in the market. Weakness No major weaknesses identified for HSPLANT. Opportunity Good value based on P/E ratio and estimated fair value. Threat Annual earnings are forecast to decline for the next 3 years. Whilst important, the DCF calculation is only one of many factors that you need to assess for a company. DCF models are not the be-all and end-all of investment valuation. Instead the best use for a DCF model is to test certain assumptions and theories to see if they would lead to the company being undervalued or overvalued. If a company grows at a different rate, or if its cost of equity or risk free rate changes sharply, the output can look very different. For Hap Seng Plantations Holdings Berhad, we've put together three fundamental items you should further research: Risks: Consider for instance, the ever-present spectre of investment risk. We've identified 2 warning signs with Hap Seng Plantations Holdings Berhad (at least 1 which makes us a bit uncomfortable) , and understanding these should be part of your investment process. Future Earnings: How does HSPLANT's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart. Other High Quality Alternatives: Do you like a good all-rounder? Explore our interactive list of high quality stocks to get an idea of what else is out there you may be missing! PS. Simply Wall St updates its DCF calculation for every Malaysian stock every day, so if you want to find the intrinsic value of any other stock just search here. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
