7-eleven Malaysia Holdings Berhad

$SEM / 5250 (7-ELEVEN MALAYSIA HOLDINGS BERHAD)
Research by MAYBANK

$SEM / 5250 (7-ELEVEN MALAYSIA HOLDINGS BERHAD)
Research by CGSI

Top 10 RoE Companies in Bursa Malaysia.

Here are the top 10 companies with the highest RoE (Return on Equity). This ranking is based solely on RoE, a financial metric that measures a company's profitability relative to its shareholders' equity. RoE indicates how efficiently a company is using its equity to generate profits and is often used to benchmark companies within the same industry. However, it's important to be cautious, as RoE alone doesn’t provide a full picture of a company’s financial health and Stockbitors must remember to analyze companies from a variety of angles to get a better understanding of your investments!

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$SEM / 5250 (7-ELEVEN MALAYSIA HOLDINGS BERHAD)
Research by Maybank
Hold - TP RM1.97

"2Q24: Routine results"

2Q24 results met our expectation. Sequential earnings may ease in absence of festive-led sales but this may be partially offset by stronger spending momentum from EPF Account 3 withdrawals. The group’s key focuses will be to expand its 7-Café store network, and roll out new fresh food/RTE items in its stores. We keep our earnings estimates. Maintain HOLD with an unchanged TP of MYR1.97 (28x FY25E PER, -0.5SD to mean).

Analyst:
Jade Tam
jade.tam@maybank-ib.com

$SEM / 5250 (7-ELEVEN MALAYSIA HOLDINGS BERHAD)
Research by CGS
Hold - TP RM1.98

"In line 1H24 from robust consumer demand"

■ 7-Eleven’s 2Q24 net profit of RM21m (+6.3% yoy) brought its 1H24 net profit to RM33m, 50%/46% of our FY24F estimate/Bloomberg consensus.
■ Generous cash handouts and higher tourist arrivals should spur demand in 2H24F and FY25F. 1H24 7-Café store rollouts tracking well within target.
■ At 32.7x CY24F P/E, the company’s valuations are on the high side, which should limit share price upside, in our view.

Analysts:
LEW Cheng Wei
chengwei.lew@cgsi.com
Prem JEARAJASINGAM
prem.jearajasingam@cgsi.com

$SEM / 5250 (7-ELEVEN MALAYSIA HOLDINGS BERHAD)
Research by Maybank
Hold – TP of MYR 1.98

“Several roadblocks to overcome”

The pace of SEM’s sales mix transition into higher margin fresh food products may be inadequate to offset the negative effects from a deteriorating appeal towards existing products that are tied to current external geopolitical tensions. Hence, we lower our FY24E-FY26E earnings estimates by 9-11%. Rolling forward our valuation base year to FY25E, our TP is lowered to MYR1.97 (unchanged 28x FY25E PER, about -1SD to mean).

Analyst(s):
Jade Tam
jade.tam@maybank-ib.com

General Meetings: Outcome of Meeting

$SEM / 5250 (7-ELEVEN MALAYSIA HOLDINGS BERHAD)
Research by Maybank
Hold – TP of MYR 2.00

“1Q24: Growing pains”

SEM’s 1Q24 results undershot our expectations on higher-than-expected selling and distribution expenses. The group will continue to diversify into higher margin fresh food sales through its 7-Café stores whilst refreshing its product offering at its existing 7-Eleven convenience stores for better store footfall. We keep our earnings estimates, HOLD call, and TP of MYR2.00 (28x FY24E PER, -1SD to mean) pending SEM’s results briefing on 31st May.

Analyst(s):
Jade Tam
jade.tam@maybank-ib.com

PETALING JAYA: 7-Eleven Malaysia Holdings Bhd expects the local economy to be driven mainly by resilient domestic spending, supported by sustained growth in employment and wage growth.

Quarterly rpt on consolidated results for the financial period ended 31/03/2024

Annual Report & CG Report - 2023

Circular/Statement to Shareholders in relation to the Proposed Renewal of and New Shareholders' Mandate for Recurrent Related Party Transactions of a Revenue or Trading Nature and Proposed Renewal of Authority for the Company to Purchase Its Own Shares

DEALINGS IN LISTED SECURITIES (CHAPTER 14 OF LISTING REQUIREMENTS) : Intention to Deal During Closed Period

General Meetings: Notice of Meeting

SEM - Notice of Book Closure

KUALA LUMPUR: 7-Eleven Malaysia Holdings Bhd (SEM) has declared an interim single-tier dividend of 2.7 sen per ordinary share for the financial year ended Dec 31, 2023 (FY23).

OTHERS7-Eleven Malaysia Holdings Berhad ("SEM" or "the Company")
- Declaration of interim single-tier dividend in respect of the financial year ended 31 December 2023

Interim Dividend

CGS International (CGSI) Research is cautiously optimistic about 7-Eleven Malaysia Holdings Bhd’s outlook as it expects consumption and tourism growth to boost convenience stores.

$SEM / 5250 (7-ELEVEN MALAYSIA HOLDINGS BERHAD)
Research by CGS
Hold (no change) – TP of MYR1.98

“Mid-term growth prospects priced in”

■ We reiterate Hold on 7-Eleven, with a lower GGM-derived TP of RM1.98, post FY23 results and disposal of Caring Pharmacy.
■ Conversions of stores to 7-Cafés and completion of Fresh Food Commissary should complement improved economic activity and tourist boost in footfall.
■ At 32.4x CY24F P/E, the company’s valuations are on the high side, in our view. This note marks the transfer of coverage to Lew Cheng Wei.

Analyst(s):
LEW Cheng Wei
prem.jearajasingam@cgsi.com

$SEM / 5250 (7-ELEVEN MALAYSIA HOLDINGS BERHAD)

KUALA LUMPUR: Subdued consumer spending may delay the reception of 7-Eleven Malaysia Holdings Bhd's new products as consumption habits turn cautious. 

© New Straits Times Press (M) Bhd

$SEM / 5250 (7-ELEVEN MALAYSIA HOLDINGS BERHAD)
Research by Maybank
Hold – TP of MYR2.00

“Execution is key”

Consumer spending may remain soft in the near-term but SEM’s pivot towards higher margin fresh food products could partially buffer potential sales downside if store expansion plans and new fresh food SKUs are rolledout smoothly. With a rising operational cost environment, our FY24E-FY26E earnings estimates are lowered by 8%-10%, deriving a lower TP of MYR2.00 (-10sen, unchanged 28x FY24E PER or -1SD of mean).

Analyst(s):
Jade Tam
jade.tam@maybank-ib.com

$SEM / 5250 (7-ELEVEN MALAYSIA HOLDINGS BERHAD)
Research by Maybank
Hold – TP of MYR2.00

“Disposal of Caring Pharmacy has completed”

We believe that SEM’s efforts to diversify into a higher margin fresh food offering in its stores will start to ramp up in FY24 given added capacity from its newly completed food commissary. Store expansion plans will also focus on its 7-Café brand going forward. Our earnings estimates, HOLD call and TP of MYR2.10 (28x FY24E PER, about -1SD to mean) are maintained pending SEM’s results briefing.

Analyst(s):
Jade Tam
jade.tam@maybank-ib.com

KUALA LUMPUR: 7-Eleven Malaysia Holdings Bhd’s (SEM) focus for the convenience stores segment continues to be on the expansion of 7-Café store format.

Quarterly rpt on consolidated results for the financial period ended 31/12/2023

Change of Address (Amended Announcement)

Change of Address

DEALINGS IN LISTED SECURITIES (CHAPTER 14 OF LISTING REQUIREMENTS) : Intention to Deal During Closed Period

TRANSACTIONS (CHAPTER 10 OF LISTING REQUIREMENTS) : NON RELATED PARTY TRANSACTIONS7-ELEVEN MALAYSIA HOLDINGS BERHAD ("SEM" OR THE "COMPANY")

DISPOSAL BY CONVENIENCE SHOPPING (SABAH) SDN BHD ("CSSSB"), A WHOLLY-OWNED SUBSIDIARY OF THE COMPANY, OF ITS ENTIRE 75% EQUITY INTEREST IN CARING PHARMACY GROUP BERHAD ("CARING") TO BIG PHARMACY HOLDINGS SDN BHD ("BIG PHARMACY" OR "PURCHASER") FOR A CASH CONSIDERATION OF RM675.0 MILLION ("DISPOSAL")