99 Speed Mart Upgrade OW, price leader wins when wallets tighten

Research evidence excerpt

99 Speed Mart Upgrade OW, price leader wins when wallets tighten

J P M O R G A N Asia Pacific Equity Research

19 May 2026

99 Speed Mart ▲Overweight

Previous: Neutral

Upgrade OW, price leader wins when wallets tighten SPEE.KL, 99SMART MK

Price (18 May 26):RM3.28

Price Target (Dec-26):RM3.80

We upgrade 99SMART to OW after the share price corrected ~20% from its Head of Malaysia Research,

RM4.15 peak on 9 Feb (vs. KLCI -1.3%) as valuation digestion (see earlier Healthcare, Construction, Consumer

downgrade in Feb 2026) and geopolitical risks drove broader institutional de- and Conglomerates

risking across consumer names. Our positive view is now supported by: (1) price Yen Voo, CFA, CA AC

leadership gap of 6-9% versus peers, which should matter more if oil prices stay (60-3) 2718 0914

higher for longer and consumers continue trading down into value-led formats; (2) yen.voo@jpmorgan.com

JPMorgan Securities (Malaysia) Sdn. Bhd. (18146-

our FY26-28 forecasts assume no incremental SARA step-up beyond currently X)

announced measures, yet still deliver a 14% FY25–FY28E EPS CAGR; and (3) Nigel Ng

continued store roll-out and operating leverage should sustain earnings (60-3) 2718 0962

growth even as SSSG normalizes to 2-5%. We upgrade to OW with an unchanged nigel.ng@jpmorgan.com

DCF-based PT of RM3.80, implying ~38x fwd PE, 16% upside. What should JPMorgan Securities (Malaysia) Sdn. Bhd. (18146- X)

increasingly change the market’s mind over the next 2-3 quarters is evidence that

Jeanette Yutan

traffic, basket resilience and new-store productivity can remain healthy without (63-2) 8878-1188

incremental policy support. jeanette.g.yutan@jpmorgan.com

J.P. Morgan Securities Philippines, Inc.

• Solid 1Q26 earnings: 1Q26 earnings were in line at 24/26% of JPM/