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Senheng is optimistic of better 2022 performance

Senheng is optimistic of better 2022 performance

Kuala Lumpur, Malaysia, May 2022Senheng New Retail Bhd, is optimistic about better performance in the current financial year ending December 341, 2022, to be driven by new store launches and higher per-store sales.

The positive expectation comes despite flat revenue in the 1Q22, as the Group noted a marginal revenue decline of 1.9% to RM367.3 million versus the previous quarter 1Q21. The Group registered exceptionally strong 1Q21 sales for selected digital goods such as laptops and mobile phones due to the work-from-home and stay-at-home trends in 2021.

Meanwhile, group net profit decreased 26.2% to RM8.9 million in 1Q22, as a result of higher operating and administrative expenses, which included listing expenses for the Group’s flotation exercise on the Main Market of Bursa Malaysia.

The increased costs also reflect the Group’s ongoing expansion strategies both in its retail network and technology implementations.

Senheng upgraded stores

Mr Lim Kim Heng, Executive Chairman of Senheng New Retail Berhad says, “With Malaysia’s consumer retail spending expected to improve as the country adapts to Covid-19 endemicity, we are poised to benefit significantly in the year ahead.

“Our latest expansions involving 21 new/upgraded stores in 2022 will bring enhanced shopping experience across our retail stores nationwide, and generate higher revenue for each store.”

“Additionally, our fully-digital marketing efforts allow us to achieve better engagement with customers. We employ latest technologies to obtain greater insights in consumer preferences and provide personalised experiences to a growing loyalty base of more than 3 million PlusOne members, which ultimately drives more sales to our online and physical stores.”

The Group’s expectations of higher store revenue and stronger performance in 2022 will be supported by the increasing number of larger and upgraded stores nationwide.

Its latest store formats such as Grand Senheng, Grand Senheng Elite, and Grand senQ, register on average 30%-50% higher per-store sales compared to typical Senheng stores.

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