---
endpoint: analytics
pattern: Consumer
status: done
latency_ms: 171807
conversation_id: 8c1659dd-b776-4191-9250-ba44f696854f
citations: 12
created: 2026-05-31 20:02:49Z
---

# What is 99 speedmart’s core business franchise and the key components of its operating model?

# 99 Speedmart (5326 MK / 99SMART) — Core Business Franchise & Operating Model

## 1. Corporate Identity & Core Franchise

**99 Speed Mart Retail Holdings Berhad** (stock code **5326**, stock name **99SMART**, listed on Bursa Malaysia Main Market under Consumer Products & Services) operates one of Malaysia's leading fast-moving consumer goods (**FMCG**) mini-market chains under the **"Near 'n Save" — Dekat lagi Murah** ("Closer and Cheaper") brand promise [2]. The franchise was founded in 1987 by Lee Thiam Wah as a small Klang sundry store ("Pasar Raya Hiap Hoe"), unified under the 99 Speedmart name in 2000–2003, and listed on Bursa in September 2024 [2].

The core franchise is positioned at the intersection of three retail attributes:

| Pillar | Articulation |
|---|---|
| **Affordability** | "Everyday low-price" strategy on a carefully curated assortment of fast-moving essentials [6] |
| **Proximity / convenience** | Dense, small-format mini-market footprint with extended operating hours in residential catchments [10] |
| **Consistency** | "Affordability, convenience, consistency" identified by the CEO as the brand's three guiding principles [1] |

## 2. Group Corporate Structure

99 Speed Mart Retail Holdings Berhad is a pure-play retail holding company with five 100%-owned operating subsidiaries [11]:

| Country | Subsidiary | Role |
|---|---|---|
| Malaysia | 99 Speed Mart Sdn Bhd | Retail of consumable merchandise and household products via "mini mart" outlets — Peninsular Malaysia [3] |
| Malaysia | 99 Speed Mart (East Malaysia) Sdn Bhd | Retail operations in Sabah/Sarawak [3] |
| China | Yiwu J-Jade Trading Co., Ltd | Investment holding (China sourcing arm) [3] |
| China | Yiwu Speed Mart Import & Export Co., Ltd | Exporting consumable merchandise and household products [3] |
| China | Fuzhou 99 Mini-Mart Co., Ltd | China mini-mart pilot (Fuzhou) [11] |

## 3. Physical Footprint — Scale of the Network

As of 31 December 2025 [4]:

- **3,037 mini-mart outlets** (Malaysia 3,032 + Fuzhou, China 5)
- **22 distribution centres**
- **2 headquarters** (Klang, Selangor; Kota Kinabalu, Sabah)
- **FY2025 revenue: RM11,433.2 million (+14.5% YoY)**; pipeline of **~250 new outlets** planned for 2026 [1]

The network is heavily Selangor-anchored — **854 outlets and 7 DCs in Selangor**, plus 443 in Johor, 346 in Perak, and 237 in KL/Putrajaya — giving the group dense coverage of Malaysia's urbanised west coast belt where population and consumption are concentrated [4].

## 4. The Operating Model — Five Key Components

### (a) Centralised Procurement & Private-Label Sourcing (Upstream)
The upstream half of the value chain consists of identifying and onboarding FMCG and household-product suppliers, with **centralised bulk purchasing, price negotiation, and long-term supplier partnerships including private-label manufacturers** [5]. The two Yiwu (China) entities provide a captive sourcing/export channel into the China supply base, strengthening procurement leverage and private-label cost economics [2][3].

### (b) Owned Distribution Network & Inbound Logistics
Goods flow from suppliers into a fleet of **22 group-owned distribution centres**, supported by product quality checks and food-safety/regulatory compliance [4][5]. Each region is anchored by a dedicated DC (e.g. 7 in Selangor, 4 in Sabah, 2 each in Perak and Johor), enabling rapid replenishment cycles across the outlet network [4]. The Frost & Sullivan IMR (in the IPO prospectus) singles out this self-owned logistics infrastructure as a structural barrier to entry: "Mini-markets with a robust distribution network are able to achieve operational efficiencies… established mini-markets have already created strong distribution networks by investing significant resources in building and optimising their infrastructure" [9].

### (c) Standardised, Lean Mini-Market Store Format (Downstream)
At the storefront, the group runs **standardised store formats and lean operating models** that control cost and deliver a consistent customer experience across every outlet [7]. The format is small-box mini-market (between a 7-Eleven convenience store and a hypermarket on the format spectrum), located inside residential neighbourhoods with extended operating hours — a configuration aimed at capturing daily "top-up" trips for groceries and household essentials [10].

### (d) Everyday-Low-Price + High Inventory Turnover Economics
Pricing strategy is anchored on **"everyday low-price… disciplined cost management… carefully selected assortment of fast-moving essentials"**, with **centralised procurement and high inventory turnover** acting as the engine that protects gross margin from competitive pricing pressure [6]. The result is a thin-margin, high-velocity P&L: FY2025 **PBT margin of 7.0% (FY2024: 6.4%)** and **PAT margin of 5.3% (FY2024: 4.7%)** on revenue of RM11.4bn [12].

### (e) Digital / e-Commerce Augmentation — "99 Bulksales"
Beyond brick-and-mortar, the group operates **99 Bulksales** — an online bulk-sales platform launched in 2023 that takes online orders in the central region (Selangor, KL, Putrajaya) and the southern region (Johor, Melaka, Negeri Sembilan) [9]. Management cites digitisation, automation, and analytics as a planned axis of investment to drive further operating-efficiency gains and capture the SME/enterprise wholesale channel alongside retail [10].

## 5. Why the Model Is Defensible (Barriers to Entry)

Frost & Sullivan, in the IPO prospectus, identifies the key barriers that the 99 Speedmart franchise has built up over ~four decades [8][9]:

- **Strong branding** — instant recognition and customer loyalty in the mini-market segment
- **Economies of scale & extensive outlet network** — bulk purchasing power, ability to source private-label goods at lower cost, fixed costs spread over a large sales base
- **Strong, self-owned distribution network** — group-owned DCs and delivery fleet enabling fast replenishment that new entrants cannot easily replicate
- **Digitalisation** — investments in automated inventory management, mobile express checkouts, and bulk-sales e-commerce that require meaningful upfront capex

## 6. Capital Structure Supporting the Model

The operating model is funded conservatively:

- **Total assets RM4,147.3m** (FY2024: RM3,600.8m), driven by reinvestment into property, equipment, outlets, and logistics infrastructure [12]
- **Shareholders' equity RM1,680.8m** (FY2024: RM1,451.6m) [12]
- **Net cash position**; capex funded largely from internally generated cash flow [12]

This means the model is self-funding — outlet rollout (~250/year), DC build-out, IT/automation, and sustainability capex (solar, EV trucks) are absorbed without leveraging the balance sheet [12].

## Summary

**99 Speedmart's franchise** is a Malaysia-leading FMCG **mini-market** chain trading under the "Near 'n Save" banner — small-box, neighbourhood-proximity, value-priced. **The operating model** is a hub-and-spoke retail platform: (1) centralised bulk procurement (including private-label and a captive Yiwu sourcing arm), (2) 22 group-owned DCs that anchor regional replenishment, (3) **3,037** standardised lean mini-mart outlets clustered in Malaysia's urbanised west coast, (4) everyday-low-price economics powered by high inventory turnover and tight cost discipline (FY25 PAT margin 5.3%), and (5) a digital extension via **99 Bulksales** plus a nascent China (Fuzhou) pilot — all funded from internally generated cash on a net-cash balance sheet.

---
**Sources**
[1] 99 Speed Mart Retail Holdings Bhd — Integrated Annual Report 2025 (English) — Page 5/5 (CEO Message: Near 'n Save ethos; RM11,433.2m FY25 revenue; 3,037 outlets; ~250 new outlets in 2026)
[2] 99SMART — Annual Report 2024 (Part I) — Business Overview (FMCG retailer; 99 Holdings corporate transformation; Yiwu subsidiaries in China)
[3] 99SMART — Annual Report 2024 (Part 2) — Sustainability Statement Reporting Scope (subsidiaries, DCs, outlet counts by entity)
[4] 99 Speed Mart Retail Holdings Bhd — Integrated Annual Report 2025 (English) — Page 5/5 ("Our Presence, Our Footprint": 3,037 outlets, 22 DCs, regional breakdown)
[5] 99SMART — Annual Report 2025 (Part 1) — Our Value Chain (Upstream: FMCG sourcing, centralised bulk purchasing, private-label manufacturers, inbound logistics)
[6] 99SMART — Annual Report 2025 (Part 2) — Key Market Trends & Strategic Responses (everyday low-price strategy; centralised procurement; high inventory turnover; standardised operating models)
[7] 99SMART — Annual Report 2025 (Part 2) — Competitive Industry Structure (extensive outlet network, centralised DCs, standardised store formats, lean operating models)
[8] 99 Holdings IPO Prospectus (Part 1) — Frost & Sullivan IMR: Barriers to Entry (strong branding; economies of scale; private-label sourcing advantage)
[9] 99 Holdings IPO Prospectus (Part 1) — Frost & Sullivan IMR: Distribution & Digitalisation barriers (self-owned DC network; 99 Bulksales central + southern region online ordering)
[10] 99 Speed Mart Retail Holdings Bhd — Integrated Annual Report 2025 (English) — Page 4/5 (Outlook: competitive pricing via scale; convenience via mini-market locations and extended hours; automation & analytics)
[11] 99 Speed Mart Retail Holdings Bhd — Integrated Annual Report 2025 (English) — Page 5/5 (Group Corporate Structure: 5 subsidiaries incl. Fuzhou 99 Mini-Mart Co., Ltd)
[12] 99SMART — Annual Report 2025 (Part 2) — MD&A Financial Highlights (FY25 PBT margin 7.0%; PAT margin 5.3%; total assets RM4,147.3m; equity RM1,680.8m; net cash position)

## Citations

- [1] **99 Speed Mart Retail Holdings Bhd. (107KKS-E) - Annual Report for period end 31-Dec-2025 (English) - PDF - 5 / 5** · external
- [2] **99SMART - Annual Report 2024 (Part I)** · external
- [3] **99SMART - Annual Report 2024 (Part 2)** · external
- [4] **99 Speed Mart Retail Holdings Bhd. (107KKS-E) - Annual Report for period end 31-Dec-2025 (English) - PDF - 5 / 5** · external
- [5] **99SMART - Annual Report 2025 (Part 1)** · external
- [6] **99SMART - Annual Report 2025 (Part 2)** · external
- [7] **99SMART - Annual Report 2025 (Part 2)** · external
- [8] **99 Holdings Prospectus (Part 1)** · external
- [9] **99 Holdings Prospectus (Part 1)** · external
- [10] **99 Speed Mart Retail Holdings Bhd. (107KKS-E) - Annual Report for period end 31-Dec-2025 (English) - PDF - 4 / 5** · external
- [11] **99 Speed Mart Retail Holdings Bhd. (107KKS-E) - Annual Report for period end 31-Dec-2025 (English) - PDF - 5 / 5** · external
- [12] **99SMART - Annual Report 2025 (Part 2)** · external

