99 Speed Mart Retail Holdings Bhd shares edged 2 sen or 0.58% higher to RM3.45 as at 3.54pm, as investors weigh the potential benefits of a larger cost-of-living aid programme under Budget 2027.
The counter opened at RM3.44 and traded between RM3.43 and RM3.48, with 805,300 shares changing hands.
According to The Star, AmBank Research recently reinitiated coverage on 99 Speed Mart with a “BUY” call and a target price of RM4.25, citing the retailer’s potential to benefit from higher Sumbangan Asas Rahmah (SARA) spending.
The research house noted that 99 Speed Mart accounts for around 21% of SARA-eligible stores, giving it a sizeable footprint to capture spending from any expansion of the aid programme.
“We think this is justified by 99 Speed Mart’s unique position as the key beneficiary of government cash aid, a thinning free-float % that limits de-rating risk and a staples-led value model increasingly prioritising quality of expansion pace,” AmBank Research said.
It expects more than 21% of SARA spending to flow through 99 Speed Mart as its ultra-local convenience network continues to expand.
Despite the group’s aggressive store rollout, with 94% of outlets located within 3km of another outlet, AmBank Research said cannibalisation has been a smaller drag than store density might suggest.
The research house also pointed to continued consumer trade-down behaviour, which supports demand for 99 Speed Mart’s value-focused retail model.
AmBank Research values the company at 40 times its 2027 to 2028 price-to-earnings ratio, supported by an estimated 15% compound annual growth rate in core earnings.
