Kuala lumpur: Newly listed Teamstar Bhd has announced its plans to expand its presence in Malaysia by establishing 10 additional retail outlets by 2028, supplementing its existing network of 29 outlets nationwide. Chief Financial Officer Tan Jian Wei revealed the company's strategic plans, emphasizing the aim to open three to four new outlets annually starting this year, with particular attention to regions such as Johor Bahru, Penang, and Kedah.
According to BERNAMA News Agency, Penang represents a new retail market for Teamstar, as the company currently operates a warehouse there but has yet to establish a retail store. Besides the expansion, Teamstar intends to upgrade some of its current outlets to incorporate showroom concepts, transforming them into showroom-cum-retail stores. These stores will display mock-ups of Teamstar's brands and products, including authorized third-party brands for kitchen and living spaces, as disclosed by Tan during a press conference following the company's listing ceremony.
Teamstar made its debut on the ACE Market of Bursa Malaysia at an initial public offering (IPO) price of 26 sen per share, with 16.70 million shares traded. By the end of the trading day, the shares closed at 23.5 sen, marking a 2.5 sen decrease from the IPO price, with a total of 80.21 million shares exchanged.
Additionally, Tan highlighted plans to establish a megastore in Puchong, Selangor, Teamstar's main operating area. This megastore, spanning approximately 3,000 to 4,000 square feet, will consolidate a wide range of Teamstar's products. The timeline for the megastore extends beyond three years, as the company plans to gauge market feedback and adjust its strategies accordingly.
The company also plans to open two additional warehouses, anticipated to be operational either this year or the next. Furthermore, Teamstar is set to capitalize on opportunities from the Johor-Singapore Special Economic Zone (JS-SEZ), especially as Johor's development intensifies, supported by robust property and refurbishment activities in Johor Bahru driven by the JS-SEZ initiative.
Tan reassured stakeholders about Teamstar's financial health, noting the company's comfortable leverage level with a gearing ratio below 0.3 times, backed by a strong cash-generating position. He cited an independent market research (IMR) report, indicating that the Malaysian home improvement industry was valued at over RM45 billion as of January 2025. The figures encompass major building materials like cement, aluminum, and steel profiles, while Teamstar concentrates on interior fittings, furniture fittings, and general hardware products. Currently, Teamstar holds approximately 0.3 percent of the total market share. According to the IMR report, the industry is expected to grow at an annual rate of 4.4 percent, surpassing RM50 billion by 2029.