Senheng New Retail Berhad reported strong growth for the second quarter ended 30 June 2022 (2Q22), with net profit expanding 43 % to RM16.1 million from RM11.3 million in the same quarter last year, on 32.9% higher revenue of RM397.7 million from RM299.4 million previously.
The improved performance was driven by new store launches and higher per-store sales from the Group’s ongoing store expansion and upgrading programme, in addition to improved consumer spending and retail sector activity.
The group is undertaking a 3-year RM160.5 million expansion program from 2022 to 2024, involving the transformation of its retail store network nationwide into Territory Champions – leaders by floor space and product range within a 5-kilometre store radius. This is complemented by increasing technology adoption, through the integration of its fully digital marketing process with the latest technology solutions, such as AI and data analytics, for enhanced consumer satisfaction.
The Group’s latest store formats Grand Senheng, Grand Senheng Elite, and Grand senQ, register on average 30%-50% higher per-store sales compared to typical Senheng stores. The new store formats are part of the Group’s upgrade and expansion program from 2022 to 2024 comprising a total of 61 new/upgraded stores nationwide.
For the first half ended 30 June 2022 (1H22), group revenue rose 13.5% to RM765 million from RM673.9 million previously, while net profit improved 7.2% to RM25.0 million from RM23.3 million last year. The growth was supported by higher per-store sales across its retail network, seven new/upgraded stores in 1H22, as well as increasing use of personalised digital marketing.
Senheng declared an interim dividend of 0.5 sen per share in respect of FY2022, with an estimated payout of RM7.5 million or 30.0% of 1H22 profit, payable on 14 October 2022. The Group has a targeted dividend payout of up to 30% of its annual net profit to shareholders.
On outloook, Senheng looks to develop its App ecosystem and transform it into a leading tech-based platform.
