99 Speed Mart has opportunities to expand in under-served markets: Apex Securities
KUALA LUMPUR: Apex Securities Bhd sees further expansion opportunities for 99 Speed Mart Retail Holdings Bhd in under-penetrated markets, alongside same-store sales growth.
Apex Securities Bhd believes there are opportunities for 99 Speed Mart Retail Holdings Bhd to expand in under-served markets, while maintaining strong same-store sales growth. At June 30, 2026, 99 Speed Mart operated 3,151 outlets, compared to 2,024 in the financial year ended Dec 31, 2021. The company has a target of 4,250 outlets by 2030, with current operations concentrated in the Klang Valley, where Selangor accounts for 854 of the total outlets.
New outlets in the network typically become profitable within three years and take three to five years to reach full maturity, providing additional sources of revenue growth as the network expands. Apex Securities forecasts the number of outlets to reach 3,292, 3,542, 3,792, and 4,032 by the financial years ending Dec 31, 2026-2029.
They have assumed that same-store sales growth will normalize to 6.0 percent in the financial year ending Dec 31, 2027-2029, which is below the 7.7 percent recorded in FY2025 and 9.1 percent in the first half of 2026.
Sales growth at 99 Speed Mart has been driven by higher transaction volumes, facilitated by extended opening hours, promotions offering four items for RM10, and an expanded government Sara cash-aid programme. Sales growth slowed from 11.9 percent in 3Q 2025 to 7.2 percent in 2Q 2026, while the average basket size remained flat at RM21.4 over 10 quarters. At 10:36 am, 99 Speed Mart's stock was trading at RM3.09, with a decline of two sen and a trading volume of 112,800 units.
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