99 Speed Mart to gain from GE16 ‘rakyat’ friendly measures

PETALING JAYA: 99 Speed Mart Retail Holdings Bhd will be a major beneficiary of any populist measures dished out by the ruling coalition ahead of the 16th general election (GE16), said a research house.

Hong Leong Investment Bank (HLIB) said the mini-market chain operator was well-positioned to benefit from potential “rakyat” friendly measures ahead of an early GE16.

“A possible earlier-than-mandated GE16 – which we reckon could happen in Q4 2026 – could be a potential tailwind for 99 Speed Mart. We do not discount the possibility of more people friendly measures being rolled out to ease the cost of living, such as the previous SARA schemes,” it said in a note today.

Given its position as Malaysia’s largest convenience retail chain and extensive range of SARA-eligible products, HLIB said 99 Speed Mart is well-placed to capture the bulk of any incremental consumer spending.

“We remain constructive on 99 Speed Mart’s FY2026 trajectory, supported by its resilience as a consumer staple and its competitive market position,” said HLIB, which maintained its “buy” call and left its target price exchanged at RM4.24, a 20% upside from the current price.

It noted the group delivered strong Q1 FY2026 results and 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.

Net profit for the first quarter ended March 31, 2026, surged 30.1% to a record RM188.56 million from RM144.89 million a year ago while revenue jumped 17.5% to RM3.07 billion, driven by higher sales and its robust store expansion.

HLIB also said despite the geopolitical headwinds in the Middle East, 99 Speed Mart has not flagged any concerns on its current operations and is confident on its ability to capitalise on resilient demand for essential items.

At the noon break, the shares were down 3 sen or 0.8% at RM3.53, valuing the company at RM29.65 billion. The stock is down 6.6% year to date.

99 Speed Mart’s shares have jumped 114% since it was listed in September 2024 at an initial public offering (IPO) price of RM1.65.

The IPO was Malaysia’s largest in seven years and transformed its wheelchair-bound founder and CEO Lee Thiam Wah into one of Malaysia’s richest individuals.

Forbes ranks him at No 6 in its Malaysia’s 50 Richest list, with a net worth of US$6.6 billion (RM26.9 billion).