Senheng New Retail Berhad (“Senheng” or the “Group”), Malaysia’s leading consumer electronics retailer, today announced its unaudited financial results for the second quarter ended 30 June 2026 (“Q2 FY2026”), recording revenue of RM236.7 million and gross profit of RM53.6 million. Gross profit margin improved to 22.7%, compared with 21.0% in Q2 FY2025.
Revenue for Q2 FY2026 was lower than RM270.4 million recorded in the corresponding quarter last year, reflecting continued selective consumer spending on higher-ticket electrical and electronics products. Gross profit, however, declined at a slower pace of 5.6% year-on-year, resulting in a 1.7 percentage-point improvement in gross profit margin that reflects the Group’s continued focus on sales quality, product mix and disciplined promotional execution.
Cost discipline remained evident during the quarter. Operating and administrative expenses decreased to RM56.0 million from RM57.2 million a year earlier, while finance costs declined by 32.1% to RM0.9 million. On a quarter-on-quarter (“QoQ”) basis, loss before tax narrowed to RM1.2 million from RM1.5 million in Q1 FY2026, supported by higher gross profit margin and tighter control over operating expenses. The Group reported a loss after tax of RM1.6 million compared with RM 1.3 million in Q1 FY2026. However, excluding a tax incentive benefit of approximately RM0.6 million recognised in Q1 FY2026, the loss after tax would have been approximately RM1.9 million, indicating an improvement in Q2 FY2026.
For the six months ended 30 June 2026, Senheng recorded revenue of RM487.5 million and gross profit of RM107.4 million. More importantly, net cash generated from operating activities increased by 48.0% to RM46.1 million from RM31.2 million in the corresponding period last year. Cash and bank balances strengthened to RM103.9 million as at 30 June 2026 from RM88.9 million at the end of 2025, while borrowings declined to RM34.0 million from RM36.4 million.
Mr. Lim Kim Heng, Managing Director of Senheng New Retail Berhad, commented: “Q2 reflects the discipline we are building into the business. The Point-Based Economy (“PBE”) is the ninth transformation Senheng has undertaken since 1989, and experience has taught us that each phase requires investment and time for adoption to mature and scale. Our approach is to build while holding operating costs and working capital tight. While consumer spending remains selective, our gross margin improved, the pre-tax loss narrowed from the preceding quarter, and operating cash flow and liquidity remain healthy giving us the flexibility to keep investing in the resilience of the business over the longer term.
“Our priority is to build a more productive customer ecosystem rather than rely solely on short-term promotions or a price war. The Point-Based Economy and S-Coin are designed to encourage sustainable repeat purchases and deeper customer relationships across our physical and digital channels, and as participation scales we believe they can support stronger retention and better sales conversion over time.
“The competitive environment is also changing. A growing share of consumer electronics demand in Malaysia is being fulfilled by cross-border online platforms selling directly to local consumers, and that reshapes the market we operate in. We welcome the competition. As a locally incorporated and listed retailer, Senheng contributes taxes in Malaysia, employs its people under Malaysian labour requirements, and ensures its products meet the applicable safety and certification standards, including SIRIM approval where required, and our hope is that the same requirements are applied consistently to every seller reaching Malaysian consumers, so that competition is decided on service, product quality and value.”
Looking ahead, Senheng will remain focused on the continued rollout of PBE and S-Coin as the core levers for customer engagement and omnichannel conversion using S-Coin to drive repeat purchases, accelerate redemption cycles and strengthen customer lifetime value, while continuing to manage operating costs and working capital prudently. With a stronger cash position and lower borrowings at period end, the Group remains financially positioned to sustain its transformation agenda and pursue customer-led growth opportunities in the second half of FY2026.
