MAIN Market-listed Auro Holdings Bhd (formerly NWP Holdings Bhd) is eyeing diversification into the food and beverage (F&B) sector by expanding its portfolio to include the franchise of renowned Chinese tea drink chain HEYTEA.
This move is in line with Auro’s vision to enhance its financial performance through diversified revenue streams by capitalising on growing demand in the F&B industry.
Towards this end, Auro has entered into multiple franchise agreements with HK Heycha Ltd which enables it to currently operate four HEYTEA outlets across Malaysia. For the record, HEYTEA has over 4,000 stores in China, Singapore and the UK.
The first HEYTEA outlet was launched at The Exchange TRX Mall in December 2023, followed by recent openings in prime locations such as the Mid Valley Megamall, Sunway Pyramid and 1Utama.
Looking ahead, Auro plans to open more HEYTEA stores across Peninsular Malaysia, including new locations at Genting SkyAvenue, Sunway Velocity Mall and the Gurney Plaza (Penang).
These expansions are anticipated to contribute substantially to the company’s net profits and overall revenue growth.
“Our diversification into the F&B sector represents a strategic move to harness the huge opportunities within this industry,” commented Auro’s executive director Tan Wye Chuan.
“The positive reception of our initial stores underscores the potential of this venture. We are confident that our expansion will drive substantial revenue growth and enhance our market presence.”
Added Tan: “The diversification process is anticipated to improve Auro’s financial performance which aligns with our vision of building a more resilient and growth-oriented company. We are committed to deliver sustainable value to our shareholders.”
The success of this diversification is underpinned by the expertise of Auro’s key management team.
Executive director Tan Jyy Yeen brings a wealth of experience in business management within the hospitality sector. Complementing her leadership is F&B operation manager Cheng Siew Ling who has extensive experience in managing F&B outlets and operations.
Their combined expertise will ensure the successful implementation and growth of the HEYTEA franchise in Malaysia and any subsequent brands.
The outlook for Malaysia’s F&B industry is promising with positive growth forecasts supported by strong domestic demand and vibrant tourism activities. The F&B sector is expected to grow steadily, offering a stable and consistent revenue stream.
According to market research, the F&B industry in Malaysia is projected to grow by 7.9% in 2024 driven by increasing disposable income and the revival of tourism. This growth presents a significant opportunity for Auro to capture a larger market share in the F&B sector.
At 4.19pm, Auro is down 0.5 sen or 3.13% at 15.5 sen with 1.55 million shares traded, thus valuing the company at RM92 mil. – July 5, 2024
