99SMart delivered a strong quarter three 2025 (3Q25) performance, with revenue rising to RM3 bil and core profit after tax (PAT) improving to RM160.5 mil.
This lifted nine months of 2025 (9M25) core PAT to RM456.1 mil tracking ahead of Hong Leong Investment Bank (HLIB)’s expectations at 82% of full year estimates, though broadly in line with consensus at 75%.
Sales climbed +12% quarter-on-quarter (QoQ) to RM3.0 bil, supported by 72 new store openings, the rollout of earlier operating hours starting July 2025, and stronger spending on daily essentials driven by ongoing government social support programmes.
Gross profit margin contracted by -1.2ppt on the back of a higher mix of lower margin necessity and subsidised items linked to SARA.
Despite this moderation, core PAT still grew +5% QoQ to RM160.5 mil, reflecting healthy operating leverage and disciplined cost execution.
Revenue rose to RM8.4 bil, underpinned by network expansion with a net addition of 269 outlets in 9M25. Transaction volumes also remained robust, increasing +18% YoY to 141.8 mil and 390.3 mil transactions, respectively, while average basket size held steady at RM21.40.
“We remain constructive on 99SMart’s trajectory, supported by consistent execution and structural tailwinds,” said HLIB.
The group continues to deliver steady topline and earnings expansion, anchored by its aggressive store rollout strategy, with 250 new outlets targeted for 2026 as it approaches the 3,000 outlet milestone. 99SMart also achieved full nationwide presence with its entry into Kelantan on 26 Oct 2025.
International expansion is progressing well, following the opening of its first overseas outlet in Fuzhou, China on 31 Aug 2025, the network has since grown to three stores supported by a small scale DC to strengthen on ground operations.
Management aims to scale to 12 outlets in Fuzhou over the medium term as it assesses market depth and operational scalability.
Meanwhile, initiatives such as extended store hours (from 9am) and the nationwide “4 items for RM10” campaign, supported by dedicated Everyday Value Zones, reinforce its strong value for-money positioning. Macro conditions remain favourable with resilient private consumption underpinned by wage adjustments and continued fiscal support.
The broadened RM100 SARA credit programme provides an additional near term catalyst, with SARA 2.0 expected in Feb 2026. These dynamics position 99SMart to capture incremental wallet share and deepen customer stickiness. —Nov 18, 2025
Main image: 99 Speedmart
