The stock rose as much as 6% or 21 sen to RM3.49 before settling at RM3.43, or 4.6% higher, by the mid-day break, valuing the group at RM28.81 billion.
The stock is down 9% year-to-date after 99 Speed Mart suffered a correction in mid-February as investors took profit from soaring valuations just before the onset of the Iran war.
Net profit for the quarter ended March 31 (Q1 FY2026) surged 30.1% to a record RM188.56 million from RM144.89 million a year ago, driven by higher sales and its robust store expansion.
Quarterly revenue jumped 17.5% to RM3.07 billion from RM2.61 billion a year earlier, on the net addition of 253 outlets and steady consumer spending on daily essentials.
Several research houses upgraded their calls after 99 Speed Mart announced its Q1 results yesterday.
Post-results, there are now 10 “buy”, three “hold” and one “sell” call, with the consensus 12-month target price at RM3.88, according to Bloomberg data.
RHB Research, which upgraded its call to “buy” from “neutral”, said 99 Speed Mart’s valuation is looking “more palatable now” given resilient fundamentals that offer earnings visibility amidst the ongoing market challenges.
In a note today, it said earnings growth appears promising, supported by the government’s increased budget allocation for Sumbangan Asas Rahmah (SARA) and robust outlet expansion to deepen market penetration.
On the implications of the Middle East conflict, RHB said the management has neither observed nor foreseen any material cost pressures and supply chain disruptions in the immediate term.
“That said, any cost increases will be passed on to consumers,” said RHB, which kept its target price (TP) at RMR4.02.
Hong Leong Investment Bank said it remains constructive on the company’s growth trajectory, supported by its defensive consumer staple positioning, aggressive outlet rollout strategy, and improving operational efficiencies.
The bank maintained its “buy” call with a higher TP of RM4.24 per share.
Meanwhile, MBSB Research said it was positive on 99 Speed Mart’s prospects, underpinned by its resilient mass-market positioning, staples-focused product mix and disciplined outlet expansion strategy.
Its shares have jumped 108% since 99 Speed Mart was listed in September 2024 at an initial public offering (IPO) price of RM1.65.
The IPO was Malaysia’s largest in seven years and catapulted its wheelchair-bound founder and CEO Lee Thiam Wah to billionaire status.
Forbes ranks him at No 6 in its Malaysia’s 50 Richest list, with a net worth of US$6.7 billion (RM26.63 billion).