KUALA LUMPUR (Feb 25): TeamStar Bhd (KL:TEAMSTR) said it plans to focus on executing its expansion plans despite softer market sentiment linked to a stronger ringgit and weaker US dollar, after its muted debut on the ACE Market on Wednesday. About 30% of the furniture fittings retailer’s purchases are made in foreign currencies.

TeamStar chief financial officer Tan Jian Wei attributed the flat opening price to overall subdued market sentiment in Malaysia, influenced by broader uncertainties involving the US and China. 

“We will focus on our fundamentals and our strengths and also more importantly our expansion plans where we want to expand our market presence, our brand visibility and also increase our product range at the same time,” Jian Wei told reporters after its listing ceremony. 

As per its initial public offering (IPO) exercise, which is priced at 26 sen, the group plans to use RM23.2 million to open three new warehouses in Peninsular Malaysia and open 10 new retail stores — of which the first three outlets will be rolled out in Johor, Penang, and Kedah this year. 

Subsequent stores will open gradually in other states from 2027 to 2028, including Sabah and Sarawak, says Jian Wei. The group currently has 28 TeamStar outlets nationwide. 

Executive vice-chairman and chief executive officer Tan Lee Kueng said demand for functional hardware continues to be underpinned by construction and renovation activities. 

In addition to new outlet openings, TeamStar plans to upgrade selected stores to include showroom concepts featuring mock-ups of kitchens and living spaces to attract interior designers and end-consumers. 

Jian Wei also noted that the group will be introducing a larger-format “megastore” concept beyond the current three-year expansion plan, and will open in Johor to leverage the Johor-Singapore Special Economics Zone (JS-SEZ), which would drive residential and commercial renovation demand.

For the financial year ended Dec 31, 2024, TeamStar posted a net profit of RM16.85 million with revenue of RM130.22 million. The bulk of its revenue comes from its retail segment, with supply outsourced outside of Malaysia. 

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