Company Coverage
Eco-Shop Marketing (ECOSHOP MK): 4QFY26: SSSG Hits An Inflection Point
BUY (Maintained)
Current price:
Target price:
Upside:
RM1.49
RM1.70
+14.1%
Analyst
Highlights
- Earnings are within expectations as SSSG appears to have reached an inflection point.
- Gross margins improved amid Middle East spillover cost filtered through but opex increased due to seasonal staff-related expenses.
Maintain BUY as Eco-Shop offers attractive growth, underpinned by its store expansion rollout. Target price remains unchanged at RM1.70.
Analysis
- Within expectations. Eco-Shop Marketing (Eco-Shop) registered a 4QFY26 core profit of RM64.7m (15.7% yoy, -9.2% qoq), bringing FY26 core profit to RM256.7m (+22.6% yoy). This falls within expectations with earnings accounting for 100% of both our and consensus estimates. Core profit has excluded a one-off deferred tax liability that amounted to RM7.9m. Highlights for the quarter include SSSG shrinking to -2.3% from -12.9% in the preceding quarter while gross margins improved despite a full quarter’s impact from the Middle East conflict spillover cost filtering through.
Highlights
- Earnings are within expectations as SSSG appears to have reached an inflection point.
- Gross margins improved amid Middle East spillover cost filtered through but opex increased due to seasonal staff-related expenses.
Maintain BUY as Eco-Shop offers attractive growth, underpinned by its store expansion rollout. Target price remains unchanged at RM1.70.
Analysis
- Within expectations. Eco-Shop Marketing (Eco-Shop) registered a 4QFY26 core profit of RM64.7m (15.7% yoy, -9.2% qoq), bringing FY26 core profit to RM256.7m (+22.6% yoy). This falls within expectations with earnings accounting for 100% of both our and consensus estimates. Core profit has excluded a one-off deferred tax liability that amounted to RM7.9m. Highlights for the quarter include SSSG shrinking to -2.3% from -12.9% in the preceding quarter while gross margins improved despite a full quarter’s impact from the Middle East conflict spillover cost filtering through.
BUY (Maintained)
Current price:
Target price:
Upside:
RM1.49
RM1.70
+14.1%
Analyst
IMPORTANT NOTICE - DISCLOSURES AND DISCLAIMERS
This report is provided subject to, and must be read together with, the full Disclosures / Disclaimers available at the following link: https://research-api.uobkayhian.com/assets/disclaimer/df64a6ea-7980-447c-ae9e-fd19b93257dc, which are incorporated by reference into this report. In particular, this report is intended for general circulation and informational purposes only and does not constitute personal investment advice or a recommendation to buy or sell any investment product or security. You should independently evaluate the information and, where necessary, seek advice from a qualified financial adviser regarding the suitability of any investment. Analyst certifications required under applicable regulations, including SEC Regulation AC (where relevant), are included in this report. By accessing, receiving or using this report, you acknowledge that you have read, understood and agreed to be bound by the Disclosures / Disclaimers, as may be amended, supplemented or updated from time to time.
