Analysts Maintain ‘buy’ On 99 Speed Mart After Solid 1Q Results

KUALA LUMPUR, May 16 (Bernama) -- Analysts maintained a positive outlook on 99 Speed Mart Retail Holdings Bhd (99 Speed Mart) following its first quarter (1Q) results for the financial year ended March 31, 2025 (FY2025).

99 Speed Mart posted a core net profit of RM143 million for the quarter, up 7.4 per cent year-on-year (y-o-y), on the back of an 8.0 per cent increase in revenue to RM2.6 billion.

In a research note today, CIMB Securities said 99 Speed Mart’s core net profit was in line with both its forecast and Bloomberg consensus estimates.

“The strong 1Q 2025 performance was attributed to higher revenue driven by festive demand and a larger store count, a 6.1 per cent y-o-y increase in other operating income, and better operating leverage.

“We project 99 Speed Mart’s core net profit to grow 11.9 per cent y-o-y in FY2025, mainly driven by new store openings (250 net new outlets; up 9 per cent year-on-year) and a positive annual same-store sales growth (SSSG) of 1.4 per cent.

CIMB Securities maintained its “Buy” call with a target price (TP) of RM2.60. 

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HLIB also viewed the 99 Speed Mart’s results as within expectations, highlighting the retailer’s solid revenue and earnings momentum.

“We maintain our ‘Buy’ call with an unchanged target price of RM2.98, based on a price-to-earnings multiple of 45 times pegged to FY2025 earnings per share.

“We like 99 Holdings due to its strong market presence and extensive store network, with competitive pricing that is well-positioned to drive stable and recurring revenue,” it said.

Meanwhile, RHB Investment Bank also maintained a “Buy” call on 99 Speed Mart and raised the target price slightly to RM2.45 from RM2.39, based on a discounted cash flow (DCF) valuation and an earnings multiple of 35 times.

“We expect consumer spending to remain resilient, underpinned by rising disposable income as a result of wage hikes and upsized government assistance packages for lower-income groups.

“Such an environment should benefit 99 Holdings, considering its extensive store network and consumer preference for mini-markets to shop for groceries,” it said.

However, RHB IB also cautioned against downside risks, including shifts in consumer behaviour and brand-related exposure.  

At 12.30 pm, the share price of 99 Speed Mart rose one sen to RM2.20 with 3.01 million shares traded.

-- BERNAMA