MST Golf Group (MST) delivered a resilient financial performance in the financial year 2019-2022.
“Despite the impact of the Covid-19 pandemic, the group reported 3-year revenue compounded annual growth rate (CAGR) of 19.6%, gross profit CAGR of 22.2%, and net profit CAGR of 41.8%,” said CGSCIMB in the recent Retail Research Report.
MST generated a double digit gross margin of 40-43% in the financial year 2019-2022. In the financial year 2022, revenue and net profit surged 46% year-on-year and 48% year-on-year respectively on the back of higher revenue from retail and wholesale segments, driven by the launch of indoor golf centres, and improved efficiencies.
The financial year 2022 segmental revenue breakdown is as such:
1) Retail: 80%,
2) Wholesale: 16%,
3) Golf related services: 2.8%
4) Indoor golf services: 1.2%
In the financial year 2022, same store sales growth (SSSG) rebounded strongly by 34.8% year-on-year for Malaysian outlets.
Financial year 2022 geographical revenue breakdown is as such:
1) Malaysia: 66%
2) Singapore: 23%
3) Other countries, mainly Indonesia: 11%
The organisation operates under two pillars of revenue streams, retail and wholesale. Retail operations engage directly with customers through its our network of golf retail outlets, while wholesale operations enlarge its market coverage through third party resellers.
MST will embark on its expansion plans in Malaysia and Singapore over the next 3 years (2023-2025). It plans to set up 15 new outlets (10 new retail outlets and 5 new retail outlets with indoor golf centres). Also, it will upgrade and refurbish 10 existing golf retail outlets in Malaysia.
So far, the organisation has established an export-ready business model and management system that can be deployed for regional expansion. In 2024-2026, the group has earmarked key golf markets in Southeast Asia to establish 16 total new retail outlets: Indonesia (6 new outlets), Thailand (6 new outlets) and Vietnam (4 new outlets).
“MST will also roll out its digital technology facilities upgrade to enhance operations and efficiency, focusing on mobile and web portals, expansion of enterprise resource planning system, and new data analytics,” said CGSCIMB.
