HONG Leong Investment Bank (HLIB) Research has hailed the one-off RM100 cash transfer through MyKad under the Sumbangan Asas Rahmah (SARA) programme coupled with a lower RON95 petrol price of RM1.99/litre (currently: RM2.05/litre) as a boost to Malaysia’s private consumption.
That the RM100 hand-out entails a direct injection of RM2 bil into consumer wallets beginning Aug 31 to redeem household needs from some 4,100 local grocers has prompted the research house to expect 99 Speed Mart Retail Holdings Bhd and AEON Co (M) Bhd to stand out as key beneficiaries.
“99 Speed Mart (“Buy”, target price: RM2.98) with 2,800 outlets nationwide and an average basket size of RM21.40 is particularly well positioned to capture recurring spend from consumers using SARA credits,” projected the research house in an economy and market strategy note.
“AEON (“Buy”; target price RM1.82) with its urban footprint and diversified merchandise may see uplift from middle-income segments with improved purchasing sentiment.
“Overall, we believe the coordinated fiscal measures will drive near term upside in consumer traffic and transaction volumes across the mass retail space.”
Elsewhere, TA Securities Research also expects 99 Speed Mart in addition to Eco-Shop Marketing Bhd to shine following its participation in the MyKasih programme.
“They stand to benefit from increased transaction volumes and larger basket sizes as eligible consumers redeem their one-off SARA credit,” reckoned analyst Liew Yi Jiet in a consumer sector update.
“Both companies may also see improved footfall, creating opportunities for cross-selling.”
Similarly, the research house further expects essential food & beverage (F&B) players such as Nestlé (M) Bhd, Fraser & Neave Holdings Bhd (F&N) and Farm Fresh Bhd to benefit indirectly from increased volumes at participating outlets and the inelastic demand for staple goods.
Kenanga Research also expects 99 Speed Mart and Eco-Shop to be direct beneficiaries of the one-off cash aid given their inclusion as official merchant partners under SARA.
“These value-focused retailers are well-positioned to capture increased footfall from lower- to middle-income consumers looking to maximise the aid,” opined analyst Thin Yun Jing in a consumer sector update.
“If Mr DIY Group (M) Bhd is also included in the SARA merchant network, we believe it could stand to benefit from this broad-based stimulus given its appeal across income segments,” added the research house.
At 10.32am, 99 Speed Mart which experienced a 200-day moving average breakout yesterday (July 23) was down 2 sen or 0.85% at RM2.32 with 1.65 million shares traded, thus valuing the company at RM19.49 bil. – July 24, 2025
