Eco-Shop Marketing Berhad IPO's Analysis

Eco-Shop Marketing Berhad

Eco-Shop Marketing Berhad, incorporated in 2006 and headquartered in Jementah, Johor, Malaysia, is a leading fixed-price retailer specializing in affordable non-grocery products. The company operates a broad network of outlets offering diverse merchandise across categories such as household essentials, stationery, toys, and kitchenware, all priced for value-conscious consumers. With strong distribution capabilities and a commitment to customer satisfaction, Eco-Shop plays a pivotal role in delivering accessible and high-quality products, positioning itself as a trusted name in Malaysia's retail landscape.

IPO Details
Market: MAIN
Principal Adviser: Maybank Investment Bank Berhad
Issuing House: Tricor Investor & Issuing House (TIIH)
Shariah Status: SC (Yes)
Listing Price: 1.13
PE Ratio: 32.6-39.2
    PE (FYE): 39.2
    PE (FPE Annualised): 34.84
    PE (Hybrid): 32.63
MITI allocation?: Yes
Closing Date: 07-May-2025
Balloting Date: 09-May-2025
Listing Date: 23-May-2025
Oversubscription rate: 0.96x
Average Analysts FV :
Mplus (1.40), TA (1.28), Kenanga (1.20)
iSaham IPO Score :
Market Cap: 6,494.11 M
Number of Shares: 5,747.00 M
IPO Allocations No. of Shares %
Malaysian Public 114.94 M 2.0%
Bumiputera shareholders approved by MITI 574.70 M 10.0%
Eligible Directors and employees 71.838 M 1.25%
Private placement to selected investors and others 100.668 M 1.75%
Total Allocations 862.15 M 15.0%

Offer for Sales of 515.15 M existing shares representing 8.96% enlarged shares.

Public Issue of 347.00 M new shares representing 6.04% enlarged shares.

Median Sectors PE: N/A
Median Peers PE:
Utilisation of Proceeds
Purpose Amount (RM'000) %
Expansion Opening of new stores 56,270 13.4
Expansion Distribution centre expansion plan 200,000 47.6
Expansion Investment in IT hardware and software 10,900 2.6
Working capital Working capital 24,700 5.9
Listing expenses Defray fees and expenses for our IPO and Listing 28,000 6.7
Debt Repayment of bank borrowings 100,000 23.8
Total 419,870 100
Analyst Highlights
Date Analyst Highlights
27-Jan-2026 
RHB
  • 1HFY26 results were in line, driven by GPM expansion and new store openings, contributing to a maintained BUY rating and 14% upside potential.
  • The dollar store industry's rapid growth from consumer downtrading provides a significant, long-term expansion runway for the group.
  • 1HFY26 core net profit of MYR121m met 47-48% of full-year forecasts, with FY26F-28F earnings materially unchanged after SSSG and GPM adjustments.
  • YoY 1HFY26 revenue rose 3% to MYR1.4bn, boosted by 86 new stores, and GPM expanded 5.8ppts from price increases and favorable FX.
  • Management anticipates positive mid-single-digit SSSG in 3QFY26, driven by targeted promotions, 300 new SKUs monthly, and enhanced store productivity.
  • Elevated GPM is expected to expand further after the "Sama Bantu" price discount campaign ends (Jul-Oct 2025) and due to favorable FX and scale.
  • The new store opening pipeline remains robust with 100 stores planned for FY26, strategically located >15km from existing stores to avoid cannibalisation.
  • Key risks to recommendation include reputational issues and significant delays in planned expansion initiatives.
27-Jan-2026 
UOB
  • Earnings within expectations despite sharp SSSG contraction offset by expanded margins.
  • SSSG showing encouraging signs of recovery, with potential to turn positive in Feb 2026.
  • Attractive growth appears largely priced in; maintaining HOLD with unchanged target price of RM1.70.
12-Jan-2026 
RHB
  • Upgrade to BUY with higher TP due to SSSG recovery, dollar store growth, earnings visibility, and sustainable growth prospects.
  • SSSG conundrum is easing with price promotions, new SKUs, and normalizing consumer demand aiding footfall recovery.
  • Paced-up expansion (100 new stores) is not leading to cannibalisation due to strategic site selection and minimal overlap.
06-Jan-2026 
UOB
  • Upcoming 2QFY26 SSSG appears soft but is improving. Sentiment coupled with improved store initiatives should underpin a further recovery.
  • SSSG softness will be more than offset by gained margins, which could potentially be further enhanced by favourable forex.
  • Upgrade to BUY as valuations appear attractive following some pullback, with a target price of RM1.70. The stock offers an appealing three-year CAGR earnings growth of 16.9% as well.
27-Oct-2025 
RHB
  • Price increase expanded 1QFY26 GPM by 6.4ppt, which more than offset the opex inflation.
  • Store expansion is progressing ahead of target, with 81 new sites approved so far vs the target of 70.
23-Oct-2025 
RHB
  • Downgrade to NEUTRAL with new TP of MYR1.63, 1% upside and c.1% FY26F yield.
  • Expect underpenetrated dollar store industry to continue rapid growth.
11-Sep-2025 
RHB
  • Outlet expansions are progressing well, with >70 new locations secured.
  • Eco-Shop offers earnings visibility and, at the same time, robust earnings growth.
29-Jul-2025 
RHB
  • FY25 core net profit met 105% of full-year forecasts due to GPM expansion.
  • FY25 revenue jumped 16% YoY, supported by 74 net new store additions.
  • ECOSHOP focuses on opening at least 70 new outlets pa to penetrate markets.
25-Jul-2025 
RHB
  • ECOSHOP's expansion plans entail opening at least 70 net new stores pa, supported by raising distribution throughput capacity.
19-May-2025 
Kenanga
  • Plans to open 70 new stores annually and establish a new distribution centre.
Utilisation of Proceeds
Business Segments
Profit After Tax (PAT) by Financial Year Ended
SWOT Analysis
No Available Pro Insight yet
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