IPO Series - 99 SPEED MART RETAIL HOLDINGS BERHAD

Timetable of IPO

Figure 2: Business model of 99 SPEED MART
Source: 99 SPEED MART IPO prospectus

Utilisation of Proceeds

Figure 3: Utilisation of proceeds of 99 SPEED MART
Source: 99 SPEED MART IPO prospectus

Dividend Policy
-The group targets a payout ratio of approximately 50% of the PAT

Major Customers and Major Suppliers

Figure 4: Major customers and suppliers of 99 SPEED MART in FYE2023 & FPE2024
Source: 99 SPEED MART IPO prospectus

Financial Summary

Figure 5: Profit & Loss statement of 99 SPEED MART

Figure 6: Financial position of 99 SPEED MART

Financial overview, industry market, and personal opinion
-Overviewing from the revenue, it shows a sharp increase from RM7.83b to RM8.07b and jumped to RM9.21b in FY2021, FY2022, and FY2023 respectively. Projecting the FPE2024, the PE2024 would translate into approximately 26.02x, which is much lower than PE2023.
-As for a chain retailer, 99 SPEED MART has occupied the market share of more than 50%, with a record of 75.6% in 2023. By capitalising from the above benefit, the latest three years' revenue of CAGR (from FY2021 to FY2023) has recorded 10.4%, which was the highest for the financial year ended on 31 Dec 2023 in the mini-market segment.
-99 SPEED MART is the largest IPO within these 7 years and a well-known mini market, which may be supported by many institutions and retailers as the well-established fundamental of the company.

Figure 7: 99 SPEED MART market share by revenue in 2023

Source: 99 SPEED MART IPO prospectus

Figure 8: Geographical distribution of 99 SPEED MART's outlets

By: Jshen Ng