99 Speedmart’s growth story gains momentum as expansion fuels strong earnings

 

RECENTLY, 99 Speedmart posted an impressive performance for the first quarter of 2026, recording revenue of RM3.1 bil and core profit after tax of RM188.4 mil. 

The strong results were driven by a more favourable product mix with higher margins, alongside continued network expansion that brought its total store count up by 253 outlets.

The retailer continued to strengthen its footprint by opening 48 new stores in Malaysia and one outlet in China during the period. 

Much of the domestic expansion was focused on the northern and southern regions, allowing the group to tap into markets with lower store density and broaden its customer reach.

Management also reaffirmed its goal of opening 250 new stores in 2026, a target that would support a compound annual growth rate (CAGR) of 10.2% in its store network between 2021 and 2026.

Meanwhile, 99 Speedmart has continued rolling out solar panel installations across its stores and distribution centres as part of its long-term strategy to improve operational efficiency and reduce energy costs. 

The initiative is beginning to deliver tangible benefits, contributing to the group’s cost optimisation efforts.

A possible earlier-than-mandated GE16, which Hong Leong Investment Bank (HLIB) reckons could happen in quarter four 2026, can be a potential tailwind for 99SMart. 

“We do not discount the possibility of more rakyat friendly measures being rolled-out to ease the cost of living, such as the previous SARA schemes in Aug-25 and Feb-26,” said HLIB.

Given the group’s position as Malaysia’s largest convenience retail chain by footprint, it is well-positioned to capture the bulk of any incremental consumer spending, mirroring the robust top-line growth recorded during the second half of 2025 and the first quarter of 2026, which was in part driven by the SARA initiative.

HLIB remains constructive on 99SMart’s 2026 trajectory, supported by its resilience as a consumer staple and its competitive market position. 

The Group is poised to sustain its earnings momentum through a steady rollout of 250 new outlets annually, leveraging its 3,089-store scale and full nationwide presence. 

Despite geopolitical headwinds in the Middle East, the group has not flagged any concerns on its current operations and is confident on its ability to capitalise on resilient demand for essential items.

“We like 99SMart due to its strong market presence and extensive store network, with competitive pricing that is well-positioned to drive stable revenue growth,” said HLIB, reiterating buy for the stock.— Focus Malaysia