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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
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.
New Straits Times
20-05-2025
- Business
- New Straits Times
Eco-Shop posts 45pct jump in Q3 earnings, revenue up 17pct
KUALA LUMPUR: Eco-Shop Marketing Bhd's net profit rose 45 per cent to RM61.72 million for the third quarter (Q3) ended Feb 28, 2025, from RM42.57 million a year ago. In a filing with Bursa Malaysia, the company said quarterly revenue rose 17.2 per cent to RM736.35 million, compared to RM628.41 million in the previous year. The growth was primarily driven by the expansion of company's store network, with 26 new outlets opened in Q3 financial year 2025 (FY25) compared to 14 in Q3 FY24. "The total store count increased from 278 stores in Q3FY24 to 349 stores in Q3 FY25. Additionally, revenue was supported by a modest increase in same store growth of 0.6 per cent," it said. For the nine months ended Feb 28, 2025 (9M25), Eco-Shop's net profit increased 35.9 per cent to RM154.91 million from RM114.02 million, while revenue rose 19 per cent to RM2.098 billion from RM1.763 billion in 9M24. Eco-Shop said it remains confident in its growth prospects and is committed to expanding its store network, with a focus on suburban and rural areas. In terms of sales value, Eco-Shop said the sector is expected to grow at a compound annual growth rate of 14.2 per cent in the next five years from 2024 to 2029, presenting a robust runway for expansion. "Positioned to capitalise on the growing dollar store retail sector in Malaysia, Eco-Shop plans to continue its expansion, particularly in sub-urban and rural areas, aiming to open approximately 70 new stores per year over the next five years," it said. Looking ahead, Eco-Shop said the company continues to be vigilant and well-prepared to manage various cost and risk factors. "As our store network continues to grow, we anticipate greater demand for distribution and storage capabilities. "With improving transaction counts recorded and increased spending expected due to the recent increase in minimum wage, the company foresees a positive growth outlook in the periods ahead," it added.
