$ECOSHOP (5337.MY)$ The stock price rose on Wednesday mainly because the latest earnings performance met market expectations, leading most analysts to continue favoring this largest discount retail chain group in Malaysia.
The company's net profit for the first nine months has already reached 76% of the market’s full-year forecast. At the current pace, the net profit for the 2026 fiscal year is expected to reach approximately MYR 257 million.
RHB Research maintained a 'Buy' rating and believes that under the pressure of living costs, consumers are more inclined to purchase affordable daily necessities, which will continue to support growth in the discount retail sector.
In terms of stock price, Yigou Market once rose nearly 5% to MYR 1.34 on Wednesday, and was trading at MYR 1.31 at 9:45 a.m., with a market value of approximately MYR 7.5 billion.
However, the market is also concerned about the company's slowing sales. Yigou Market's share price has fallen by about 10% since the beginning of this year, with same-store sales in the latest quarter declining 13% year-on-year.
Maybank Investment Bank maintained its 'Buy' rating, believing that future profit growth will still be driven by new store expansion, but warned that the conflict in the Middle East has pushed up the cost of some products and shipping fees, which could pressure margins.
Currently, the market has five 'Buy' ratings and two 'Hold' ratings for Yigou Market, with no 'Sell' ratings. The average target price is MYR 1.70.
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