KUALA LUMPUR: The Employees Provident Fund (EPF) has become a substantial shareholder of Eco-Shop Marketing Bhd after lifting its stake in the discount retailer above five per cent.
The retirement fund, already Eco-Shop's second-largest shareholder, now holds 296.16 million shares, equivalent to a 5.14 per cent stake.
MyBursa data showed EPF ranked behind only Eco-Shop founder and managing director Datuk Seri Lee Kar Whatt, who remains the company's controlling shareholder with a 73.81 per cent stake.
In a filing with Bursa Malaysia today, Eco-Shop said the change in EPF's shareholding followed transactions carried out on Aug 27.
EPF acquired 53.32 million shares through one account while disposing of 44.63 million shares through another, resulting in a net increase of about 8.68 million shares in its overall holding.
EPF's shares are held across six accounts, including its main account and those managed by Amundi, Aberdeen and RHB Islamic.
The retirement fund's emergence as a substantial shareholder comes as analysts remain upbeat on the discount retailer's growth prospects.
AmInvestment Bank Bhd, which initiated coverage of Eco-Shop last month with a "Buy" call and RM1.80 target price, expects the company to enter a multi-year growth cycle.
The research house forecasts Eco-Shop's core earnings to grow at a compound annual growth rate of about 20 per cent between financial year 2026 (FY26) and FY29.
It expects growth to be driven by store expansion, consumers trading down to cheaper alternatives and structurally higher margins.
AmInvestment said Eco-Shop, Malaysia's largest fixed-price retailer, was particularly well placed to benefit as cost-of-living pressures make households increasingly price-sensitive.
It said the retailer's RM2.60 fixed-price model gives it an advantage as consumers hunt for cheaper products, while its mix of everyday essentials and discretionary items provides a defensive element to its business.
The research house also sees considerable room for Eco-Shop to expand its store network.
Malaysia has about 650 dollar stores, or roughly one for every 54,000 people, compared with about one for every 31,000 people across developed markets excluding Japan and the United States.
AmInvestment estimates the domestic market could support about 1,000 stores, while Eco-Shop is targeting about 600 to 700 outlets by FY28, up from about 460 in FY26.
It said only about half of Eco-Shop's outlets are located within 3km of another Eco-Shop store, suggesting there remains room to expand without significant cannibalisation of existing outlets.
AmInvestment expects the retailer's gross margin, which has risen from about 20 per cent in FY22 to 33 per cent in FY26, to remain at between 33 and 34 per cent from FY27 onwards, supported by greater scale, supplier rebates and a higher proportion of own-brand products.
Eco-Shop recently reported a 44.91 per cent jump in net profit to RM72.63 million for the fourth quarter ended May 31, 2026, from RM50.12 million a year earlier.
Quarterly revenue rose to a record RM772.89 million, while full-year net profit increased 29 per cent to RM264.57 million.
At Wednesday's close, Eco-Shop shares were unchanged at RM1.45 valuing the company at about RM8.35 billion.