The consumer electrical and electronics retailer recorded its highest net profit of RM65.3 million for the financial year ended 31 December 2021 (FY2021), 17.3% higher than the previous year’s RM55.6 million, driven by strong sales from both physical stores and online channels.
The retail group’s revenue for the year grew 11.5% to RM1.444 billion million from RM1.2948 billion previously despites of the lockdowns.
For the forth quarter ended 31 December 2021 (4QFY2021), the Group recorded net profit of RM31.2 million, a 13.3% increase over the previous year’s corresponding quarter (4QFY2020). This was on the back of higher revenue of RM456.4 million in 4Q21, a 9.9% increase over 4QFY2020, mainly driven by strong contributions from new and/or upgraded “Grand Senheng” stores.
The use of technology and data analytics to enable more curated and personalised marketing and wider consumer reach, resulting in higher conversion rates on digital marketing campaigns carried out by Senheng during the year has resulted in the improved sales.
Senheng plans to allocate RM49.0 million in CAPEX for its expansion plans to launch 21 new or upgraded stores in 2022. The new stores are expected to contribute positively to the Group for the financial year ending 31 December 2022 (FY2022).
“Grand Senheng” and “Grand Senheng Elite” stores on average record 30% to 50% higher sales compared to typical “Senheng” stores.
In total, the Group upgraded eight existing “Senheng” stores into “Grand Senheng” stores and “Grand Senheng Elite” stores, as well as opened two new “Grand Senheng” stores in FY2021.
Senheng’s revenue growth rate for FY2021 of 11.5% outpaced Malaysia retail sector’s growth rate of 4.4% as reported by the Department of Statistics Malaysia.
A maiden interim single-tier dividend of 1.3 sen per share is declared, with ex-date on 11 April 2022 and payment date on 29 April 2022. This translates to a total dividend payout of RM19.6 million or 30% of FY2021 net profit.
“We will continue to enhance our customers’ shopping experience in both our physical stores and online channels, as well as invest in revenue-enhancing technologies with an eye on maintaining our double-digit growth rate in the years ahead,” Executive Chairman of Senheng, Mr Lim Kim Heng commented.
