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.

The stockbroking firm noted that 99 Speed Mart operated 3,151 outlets as at June 30, 2026, up from 2,024 in the financial year ended Dec 31, 2021 (FY2021). The mini market operator's management has a 250-outlet annual target, aiming for 4,250 outlets by 2030.

Its footprint remains concentrated in the Klang Valley, with Selangor accounting for 854 of the 3,032 outlets at end-2025, followed by Johor at 443, Apex Security said in a research note today.

"New outlets typically break even in under three years and take three to five years to mature, providing an additional source of revenue growth as the network expands. We forecast 3,292/3,542/3,792/4,032 outlets in financial years ending Dec 31, 2026-2029," Apex Securities said.

It has assumed that 99 Speed Mart's same-store sales growth will normalise to 6.0 per cent in the financial year ending Dec 31, 2027-2029, below the 7.7 per cent recorded in FY2025 and 9.1 per cent in the first half of 2026 (1H 2026), reflecting a more cautious view of underlying sales growth.

Apex Securities noted that 99 Speed Mart's same-store sales growth accelerated from 1.4 per cent in the third quarter of 2024 (Q3 2024) to 11.9 per cent in 3Q 2025 before easing to 7.2 per cent in 2Q 2026, while average basket size remained broadly flat at RM21.4 over 10 quarters.

Meanwhile, the mini market operator's sales growth was driven by higher transaction volumes, supported by extended opening hours, the "four items for RM10" promotions and an expanded government Sara cash-aid programme, with the allocation increasing to RM8 billion in 2026 from RM5 billion in 2025.

At 10.36 am, 99 Speed Mart was two sen lower at RM3.09, with 112,800 units changing hands.