Whether the results turn out good or bad, that’ll decide where the share price goes next. I monitor first

Nice green candle. Rebound begins

BMS Holdings: A Scalable Retail Champion Riding Johor’s Property Boom

RHB positions BMS Holdings as a structurally advantaged, asset-light consumer retail business rather than a traditional building-materials company. With its focus on design, marketing, and distribution instead of manufacturing, BMS has built a 32-year track record of loss-free operations supported by consistent retail-driven cash flows. This model delivers stable margins and shields the business from the volatility faced by tile manufacturers, especially in raw material and energy costs.

A core pillar of RHB’s thesis is BMS’ dominance in Johor. As the largest tile retailer in the state, BMS is directly exposed to the strongest construction and property cycle in Malaysia. Johor, the Klang Valley, Seremban, and Sarawak; regions where BMS already operates, collectively contributed 72% of total construction value in 1H25, giving BMS a large, ready market to scale into. RHB expects project sales to remain robust as the Johor–Singapore narrative continues to lift residential and commercial property demand.

Financially, BMS has demonstrated consistent and broad-based growth. Revenue climbed from RM207.9 million (FY22) to RM320.2 million (FY25), while improvements in product mix, particularly higher contributions from its in-house brands, expanded gross margins from 31.8% to 35.1%. Retail remains the core driver at nearly 60% of FY25 earnings, with margins exceeding 42%, reflecting both pricing power and consumer preference for BMS’ branded offerings. RHB forecasts a 3-year earnings CAGR of 19%, supported by operating leverage as showroom networks scale.

The IPO proceeds will accelerate this expansion. BMS plans to open eight new showrooms, significantly lifting retail floor space in fast-growing corridors, including Seremban and the Klang Valley. A new distribution center will strengthen logistics efficiency and allow deeper regional penetration. Upgrades to showrooms, additional processing equipment, EV forklifts, and enhanced ERP/WMS systems further reinforce the company’s scalability as volume grows.

At an IPO price of RM0.22, the stock is valued at 10.5x FY27F PE, well below the 15x ascribed fair multiple and cheaper than both small–mid cap consumer retail peers and the broader Consumer Products & Services Index. RHB’s fair value of RM0.31 implies +41% upside, justified by BMS’ clean financial track record, rising margins, strong competitive moat in Johor, and the visibility of growth from its upcoming retail rollout. Post-listing, the group is expected to turn net cash and adopt a 30% dividend payout, translating into 2.4–2.9% yields from FY26F onwards.

In summary, RHB’s view is that BMS offers an attractive, scalable consumer retail exposure backed by multi-year structural catalysts, Johor’s property upswing, retail expansion, rising brand penetration, and a proven asset-light model that consistently generates cash.

After Trump’s visit to Malaysia, the sentiment toward glove stocks seems to have improved

Semiconductor demand is raising. Expect CPETECH will make a good rebound also

Probably will declare, but need to check if the company has a dividend policy first

Next week rebound?

https://www.cnbc.com/2025/10/22/oil-maintains-gains-on-supply-risks-and-us-plan-to-refill-strategic-reserves.html

Another stock that’s going to benefit from Johor’s development?

Today will hit 0.90?

Research house from Kenanga remains optimistic about the outlook for the glove sector

https://www.businesstoday.com.my/2025/10/08/opportunities-present-for-beaten-down-glove-stocks/