Latest news with #RM2.98
BusinessToday
16-05-2025
- Business
- BusinessToday
99 Speedmart Poised To Weather Macroeconomic Challenges
RHB Investment Bank Bhd (RHB Research), CIMB Investment Bank Bhd (CIMB Securities) and Hong Leong Investment Bank bHD (HLIB) have all reiterated their BUY calls on 99 Speed Mart Retail Holdings Bhd following a strong set of first-quarter results for the financial year ending March 2025 (1Q25), with target prices of RM2.45, RM2.60 and RM2.98 respectively. Analysts said 99SMART delivered solid earnings driven by festive demand, continued outlet expansion and better operating efficiencies, with all three houses noting that the RM143 million core net profit – up 7–8% year-on-year (YoY) – came in within expectations, representing around a quarter of full-year forecasts. RHB Research remarked that the strong topline growth of 8% YoY to RM2.6 billion was supported by the addition of 246 new outlets over the past year, bringing the total to 2,833 stores. Improved gross profit margin of 12%, aided by supplier-driven promotional incentives, helped counteract higher operating expenses stemming from the implementation of the new minimum wage. The research house reported its DCF-derived target price was raised from RM2.39 to RM2.45, implying 35x FY25F P/E, supported by the group's domestic-centric profile and resilience amid external policy uncertainties such as the US tariff outlook. CIMB Securities also kept its projections intact, noting that while EBITDA margin dipped 0.2 percentage points YoY to 10% due to wage-related cost pressure, this was offset by top-line growth and a better sales mix. Analysts anticipate FY25 core earnings to grow 11.9% YoY, underpinned by 8.8% revenue growth from a projected 250 new store openings and same-store sales growth of 1.4%. CIMB Securities maintained its target price at RM2.60 based on a 33x CY26F P/E, arguing the premium valuation is justified by superior return on equity (ROE) and its essential goods-focused product offering. HLIB echoed the positive sentiment, highlighting that 99SMART's 1Q25 core profit of RM142.7 million showed a 12% quarter-on-quarter (QoQ) growth and 7% YoY improvement, also backed by festive-related sales and supplier incentives. With expansion plans to add 250 more outlets in 2025 and a new distribution hub in Cyberjaya to bolster logistics, HLIB expects the group's growth momentum to remain intact. Its RM2.98 target price is pegged to a 45x FY25 P/E multiple, reflecting confidence in the group's scale advantage and recurring revenue model. The company declared an interim dividend of 2.25 sen per share for the quarter. Analysts noted that this was consistent with expectations, with CIMB highlighting that part of the payout may reflect deferred FY24 dividends following 99SMART's listing in September 2024. Looking ahead, all three research houses said that 99SMART is poised to benefit from rising disposable income amid higher minimum wages and stronger government support for lower-income households. The analysts believe the group's wide-reaching store network and positioning as a value-for-money essential goods retailer place it in a favourable spot to weather macroeconomic challenges and shifting consumer preferences. Related
The Sun
23-04-2025
- Business
- The Sun
5,081 asnaf families in Selangor rise out of poverty last year
SHAH ALAM: A total of 5,081 asnaf families in Selangor successfully rose out of poverty last year -- the highest achievement recorded to date -- through well-planned development programmes implemented by the Selangor Zakat Board (LZS). LZS chief executive officer Mohd Khaidzir Shahari said the success was driven by four key initiatives, namely business capital assistance amounting to RM2.98 million, entrepreneurship support (RM11 million), career incentives (RM8.73 million) and the Dermasiswa Pendidikan scheme (RM48.68 million). 'This transformation among the asnaf group is the result of strategic investments, enabling them to become economically active and self-reliant contributors to society. This supports LZS's mission to build an independent and competitive asnaf community,' he said. He was speaking at a press conference on zakat collection and distribution performance held at Menara Zakat Sultan Idris Shah in Section 14 here today, with LZS chairman Tan Sri Syed Anwar Jamalullail also present. In a related development, Mohd Khaidzir said that LZS is strengthening its strategic response this year to address the growing challenge of urban poverty, with the number of asnaf households projected to exceed 157,000 by 2030. A key priority, he said, is enhancing LZS' existing digital platform to ensure continuous accessibility, allowing for real-time information verification and personalised aid recommendations tailored to individual needs. Efforts are also being intensified to empower the asnaf community through more comprehensive support in entrepreneurship, job opportunities and development assistance, paving clearer pathways toward long-term financial stability and independence. Mohd Khaidzir added that these initiatives are further supported by the expansion of the Assistant Amil Kariah network, which now includes collaborations with schools and non-governmental organisations to strengthen grassroots outreach and ensure no eligible recipients are overlooked. 'To enhance the accuracy and reach of zakat distribution, LZS will expand cross-agency collaboration and leverage advanced technologies such as artificial intelligence and the e-Know Your Customer (eKYC) system,' he said.
Barnama
23-04-2025
- Business
- Barnama
5,081 Asnaf Families In Selangor Rise Out Of Poverty Last Year
SHAH ALAM, April 23 (Bernama) -- A total of 5,081 asnaf families in Selangor successfully rose out of poverty last year -- the highest achievement recorded to date -- through well-planned development programmes implemented by the Selangor Zakat Board (LZS). LZS chief executive officer Mohd Khaidzir Shahari said the success was driven by four key initiatives, namely business capital assistance amounting to RM2.98 million, entrepreneurship support (RM11 million), career incentives (RM8.73 million) and the Dermasiswa Pendidikan scheme (RM48.68 million). 'This transformation among the asnaf group is the result of strategic investments, enabling them to become economically active and self-reliant contributors to society. This supports LZS's mission to build an independent and competitive asnaf community,' he said. He was speaking at a press conference on zakat collection and distribution performance held at Menara Zakat Sultan Idris Shah in Section 14 here today, with LZS chairman Tan Sri Syed Anwar Jamalullail also present. In a related development, Mohd Khaidzir said that LZS is strengthening its strategic response this year to address the growing challenge of urban poverty, with the number of asnaf households projected to exceed 157,000 by 2030. A key priority, he said, is enhancing LZS' existing digital platform to ensure continuous accessibility, allowing for real-time information verification and personalised aid recommendations tailored to individual needs. Efforts are also being intensified to empower the asnaf community through more comprehensive support in entrepreneurship, job opportunities and development assistance, paving clearer pathways toward long-term financial stability and independence. Mohd Khaidzir added that these initiatives are further supported by the expansion of the Assistant Amil Kariah network, which now includes collaborations with schools and non-governmental organisations to strengthen grassroots outreach and ensure no eligible recipients are overlooked. 'To enhance the accuracy and reach of zakat distribution, LZS will expand cross-agency collaboration and leverage advanced technologies such as artificial intelligence and the e-Know Your Customer (eKYC) system,' he said.
