Senheng set to splurge RM74.3mil for 2022 capex


KUALA LUMPUR: Consumer electrical and electronics retailer Senheng New Retail Bhd is set to spend RM74.3 million on capital expenditure (CAPEX) for 2022.

Executive chairman Lim Kim Heng mentioned RM49.0 million of the CAPEX will likely be used to launch 21 new or upgraded shops this 12 months whereas the remaining RM25.3 million had been utilised to purchase 1.17 hectares of land in Bandar Bukit Raja, Selangor, in May 2022, to help future growth and upgrading of its warehousing and distribution community.

“We are on observe to meet our 2022 retailer launch goal as we execute our growth swiftly to seize extra alternatives amid the restoration in shopper spending.

“The variety of new shops for 2022 represents roughly one-third of our whole 61 retailers deliberate from 2022 to 2024,” he mentioned after the annual common assembly of the group immediately.

The newest growth consists of three refreshed retail manufacturers, Grand senQ in Paradigm Mall Johor Bahru, senQ Elite in Pavilion Elite Bukit Jalil, and Grand Senheng Elite in SS2 Petaling Jaya.

He mentioned the group’s CAPEX will likely be primarily funded by funds raised by way of its latest preliminary public providing on Bursa Malaysia, and complemented by internally-generated funds and financial institution borrowings.

Lim expressed optimism that the group might enhance its market share within the shopper electronics retail sector to 30 per cent in 2025 from 13 per cent in 2020.

Lim additionally famous that throughout the subsequent three years, Senheng will solely give its full deal with the Malaysian market and it doesn’t plan to penetrate into different international locations.

On gross sales progress, Lim mentioned for the reason that authorities lifted the motion management order and border restrictions, the group noticed a spike in gross sales transactions.

“At this second, round 90 per cent of gross sales are transacted in bodily shops. Malaysians love purchasing on the shops, to really feel the merchandise, have a look at the color and extra importantly, they need one-to-one session,” he mentioned.

On the expectation of whether or not the group might obtain double-digit progress within the second and third quarters of the monetary 12 months 2022, Lim mentioned the group might obtain the projected progress expectation pushed by its present gross sales development whereas shopper retail spending is anticipated to enhance because the nation adapts to COVID-19 endemicity.

For the primary quarter of the monetary 12 months 2022, its internet incomes decreased 26.2 per cent to RM12.06 million from the RM12.06 million recorded in the identical quarter final 12 months.

The decrease internet revenue recorded for the quarter was due to greater working and administrative bills.

Chief monetary officer Eric Mah mentioned on common, working prices will enhance by three to six per cent yearly.

“Rising operational prices are felt by all sectors in Malaysia due to the inflation, delivery and provide chains, amongst others, however we’re managing it rigorously and actively.

“We can address rising prices with the know-how now we have applied within the firm to enhance operational effectivity. By leveraging this know-how, we consider we are able to address the prices,” he mentioned. – Bernama

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