17/05/2025

BIZ & FINANCE SATURDAY | MAY 17, 2025

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Prasarana, UN agency in pact to advance sustainability goals

Analysts maintain ‘buy’ call on 99 Speed Mart after solid Q1 results KUALA LUMPUR: Analysts maintained a positive outlook on 99 Speed Mart Retail Holdings Bhd following its first quarter results for the financial year ended March 31, 2025 (FY25). The company posted a core net profit of RM143 million for the quarter, up 7.4% year-on-year (y-o-y), on the back of an 8% increase in revenue to RM2.6 billion. In a research note yesterday, CIMB Securities said 99 Speed Mart’s core net profit was in line with both its forecast and Bloomberg consensus estimates. “The strong 1Q 2025 performance was attributed to higher revenue driven by festive demand and a larger store count, a 6.1% y-o-y increase in other operating income, and better operating leverage. “We project 99 Speed Mart’s core net profit to grow 11.9% y-o-y in FY25, mainly driven by new store openings (250 net new outlets; up 9% year-on year) and a positive annual same-store sales growth of 1.4%. CIMB Securities maintained its “buy” call with a target price of RM2.60 for the stock. HLIB also viewed the 99 Speed Mart’s results as within expectations, highlighting the retailer’s solid revenue and earnings momentum. “We maintain our ‘buy’ call with an unchanged target price of RM2.98, based on a price-to-earnings multiple of 45 times pegged to FY2025 earnings per share. “We like 99 Holdings due to its strong market presence and extensive store network, with competitive pricing that is well-positioned to drive stable and recurring revenue,” it said. Meanwhile, RHB Investment Bank, too, maintained a “buy” call on 99 Speed Mart and raised the target price slightly to RM2.45 from RM2.39, based on a discounted cash flow valuation and an earnings multiple of 35 times. “We expect consumer spending to remain resilient, underpinned by rising disposable income as a result of wage hikes and upsized government assistance packages for lower-income groups. “Such an environment should benefit 99 Holdings, considering its extensive store network and consumer preference for mini-markets to shop for groceries,” it said. However, RHB IB cautioned against downside risks, including shifts in consumer behaviour and brand-related exposure. – Bernama

PETALING JAYA: Prasarana Malaysia Bhd is forging a partnership with the UN Global Compact Network Malaysia & Brunei (UNGCMYB), taking a step forward in the company’s ongoing efforts towards achieving its Sustainability Blueprint 2023-2030 goals. “Through this strategic collaboration with the UNGCMYB, we aim to further strengthen our commitment to responsible and sustainable business practices,” Prasarana president and group CEO Mohd Azharuddin Mat Sah said at the signing of a memorandum of understanding (MoU) yesterday. He said the partnership will be anchored on a three-pillar strategy – talent development, targeted enhancement and global and regional brand elevation – designed to drive impactful change across Prasarana’s organisation and contribute meaningfully to broader sustain ability goals. As part of the partnership, Prasarana will launch the Vendor ESG Hub, a dedicated digital platform that will provide more than 5,000 SME vendors with access to environment, social and governance training, tools and resources. The Prasarana Vendor ESG Hub, which is under the targeted enhancement pillar, is the second of its kind in Malaysia after Petroliam Nasional Bhd’s. Beginning in July, Prasarana will conduct quarterly in-person training sessions aimed at helping SMEs understand ESG fundamentals and develop the capability to produce their own sustainability reports. “Given that SMEs represent 96% of businesses in Malaysia, contribute over 30% to the nation’s GDP (gross domestic product) and employ well over four million people, their role in advancing ESG practices is vital. “This pattern is similarly observed across Apec economies, reinforcing the need to empower SMEs as a critical step toward driving national and regional sustainability progress,” Mohd Azharuddin said, referring to the Asia Pacific Economic Cooperation forum member countries. Under the talent development pillar, Prasarana is introducing a structured sustain ability training and certification programme for employees at all levels – from C-suite executives to frontliners. The initiative will kick off at the end of this month with the first cohort comprising approximately 250 staff, reinforcing its commitment to embedding sustainability competencies across the organisation. Under the global and regional brand elevation pillar, Prasarana’s leadership in ESG has been internationally recognised through its invitation to represent Malaysia at the UN Private Sector Forum in New York, where it serves as a member of the UNGC advisory panel.

o Transport company to launch Vendor ESG Hub, a dedicated digital platform that will provide over 5,000 SME vendors with access to training, tools and resources

Mohd Azharuddin (left) and UN Global Compact Network Malaysia & Brunei executive director Faroze Nadar at the signing of the MoU.

In addition, Prasarana is actively engaging in roundtable sessions with government ministries, industry stakeholders, and global experts – including the International Association of Public Transport – to advocate for sustainable mobility. The insights and outcomes from these discussions will be documented in a co branded roundtable report, strengthening Prasarana’s voice in shaping the future of sustainable transport. Mohd Azharuddin said that in alignment with Prasarana’s Sustainability Blueprint, which was launched in December 2023, the company remains committed to advancing ESG goals through a series of strategic and measurable initiatives. “As part of our long-term vision, we aim to reduce carbon emissions by 45% through the electrification of our bus fleet, beginning with

the rollout of 250 electric buses, with the first deliveries expected by the end of this year. Our target is to achieve 100% bus fleet electrification by 2037. “In parallel, we are working to increase the use of renewable energy by 5%, supported by solar EV systems already generating approxi mately 300 MWh across more than 50 locations at our depots and stations. “In line with our community outreach efforts, we have also sponsored 40 solar powered streetlights in Kampung Kerdas, Gombak, demonstrating how our sustainability efforts extend beyond operations to benefit local communities,” he added. The MoU with UNGCMYB is a testament to Prasarana’s role in pushing the industry forward and ensuring public transport continues to evolve as a sustainable and inclusive service for all Malaysians, Mohd Azharuddin said.

Chagee to expand footprint in Malaysia via joint venture with Magma Group PETALING JAYA: Magma Group Bhd’s wholly owned subsidiary, Magma Chain Management Sdn Bhd, has signed a strategic joint venture and a subscription agreement with Chagee (M) Sdn Bhd, a premium tea brand, to accelerate the development of Chagee’s retail footprint across Malaysia through a phased retail rollout. Malaysia over the next three years through a phased rollout, subject to prevailing market conditions. Magma group managing director and group CEO Datuk Seri Thomas Liang Chee Fong said the joint venture reflects the company’s strategic vision to diversify into high-growth lifestyle and consumer segments. to capture significant value within Malaysia’s expanding premium tea market,“ he said in a statement. Group’s broader vision to build a diversified portfolio that meets the evolving lifestyle preferences of Malaysia’s dynamic consumer base, driving sustainable long-term shareholder value.

The collaboration combines Chagee’s established brand strength, global credibility and premium product offerings with Magma’s local market insights and development expertise to jointly facilitate the rollout of new outlets. Leveraging Magma’s hospitality background and commercial presence in Malaysia, the partnership is well-positioned to accelerate Chagee’s nationwide expansion and respond to growing demand for premium, lifestyle-oriented beverage experiences. Further, the joint venture aligns with Magma

Chagee is a leading premium tea drinks brand, serving healthy and delicious freshly made tea beverages. It entered the Malaysian market in 2019 under the name BaWangChaJi, before unifying its global branding under the Chagee name in September 2021. Today, Malaysia is Chagee’s largest market outside of China, and its Malaysian operations are halal-certified by the Department of Islamic Development Malaysia.

The joint venture marks a key milestone in Magma’s diversification strategy in the premium food and beverage retail segment. Chagee will hold a 60% stake and Magma the remaining 40% in the new joint venture company, Chagee Magma Sdn Bhd. Chagee Magma aims to open up to 300 directly managed Chagee outlets across

“The partnership leverages Chagee’s proven operational excellence and strong consumer appeal, recently reinforced by its successful listing on Nasdaq, alongside Magma’s deep expertise in local market development and execution. “Together, we see substantial opportunities