SEC

Raised

MYR 395,602

N/A Day(s) Left132%

Min Target MYR 300,000
Min Equity 0.66%


Notify me for future fund raise



Industry Overview

The rising number of residential developments in Malaysia has boosted the demand for houseware and small home appliances in the major cities. With growing economic affluence translating into rising purchasing power, more mid-to-high income consumers are looking for modern, high-quality electronic products.


It forecasts that the retail sales volume of household appliances in Malaysia growing to 16.4 million units by 2022.


The global electronics manufacturing services (“EMS”) industry increased its revenue by 15 percent in 2018, according to New Venture Research’s (“NVR”) annual EMS report, to reach nearly RM22,222.2 billion.



Consumer Electronics Overview - Malaysia

  • Revenue in the Consumer Electronics segment amounts to RM3,546.5 million in Malaysia by 2019.
  • Revenue is expected to show an annual growth rate(CAGR 2019-2023) of 4.3%, resulting in a market volume of RM4,198.4 million by 2023.
  • User penetration is 28.5% in 2019 and is expected to hit 33.0% by 2023.
  • The average revenue per user (“ARPU”) currently amounts to RM386.28

In global comparison, most revenue is generated in China (RM521,802 million in 2019).

Source of information: Asia Equity Research


Problem Statement

Essentially, we provide consumers with a one-stop shop for electrical appliances.

Market Size/Trend

SEC owns the largest 3C (Consumer, Communication and Computing) chains store in Northern area of Malaysia with a market size of 80%.


Solution/Business Model 

SEC has grown from strength to strength thanks to our firm belief that ‘Great Company, Great People’ is what matters most. By investing in our people, we are able to produce a highly-competent team of professionals who ensure that all of you are “electricare”.


With our brand re-ignition exercise to further personalize our brand image, product and service offerings coupled with aggressive marketing initiatives to bring SEC to every neighborhood, our future is indeed bright.


In addition, our SEC Electricare Hub which is the largest electrical chain store hub in Malaysia further enhances our service competence through more efficient channel management and the provision of a conducive work environment for our staff. We have achieved a lot in a short span of time and are indeed indebted to our loyal customers, partners and staff for giving us the opportunity to be a part of their lives and the reason for our achievements.


SEC services focus on after sales warranty which is 6 years. Customer can bring in the electrical items and if any manufacturing default we shall repair it without cost. We also frequently run promotion bringing down the cost of the electrical items for our customer, discount coming from stock clearance and manufacturer discounts.


Revenue Model:

The company has 10 retail stores. 7 are company-owned stores and 3 are leased out to third parties for management. However, SEC captured 100% of revenue of the leasing outlets, and SEC shares a portion of the profit with the third parties.

Location of business/branches:

1) SEC Bukit Jambul

2) SEC Jelutong

3) SEC Tanjong Tokong

4) SEC Sungai Dua

5) SEC Burmah Road

6) SEC Sungai Ara

7) SEC Farlim

8) SEC Raja Uda

9) SEC Bukit Mertajam

10) SEC Lagenda Heights



Source of revenue: Retail sales of home appliances, after-sales services, and other services


Competitor Analysis

Current Competitors: Sen Heng, Court Mammoth and HSL

We have a very diverse set of talents, each with extensive business experience in the industry. Our strong business model is exemplified by our consistently profitable track-record, and by the opening up of multiple branches in Malaysia.


Business Traction

Sales Traction: Consistent revenue at RM60 Mil per year. 

Major clients: General consumers in Malaysia. We do not emphasize on property developer sales as generally the repayment from the developer has not been good. 

Major partners: Samsung, LG Toshiba, Sony, Khind, Electrolux, Bosch and etc.

Awards and certificates: 

  • Asia Top Business Award 2018
  • ASEAN Master Class Award CEO of the Year in Home Electronics Excellence 2017
  • The Contributor Award 2012 - Outstanding 3C Retail-chains in Northern Malaysia
  • Winner of the 2nd Top 50 Enterprise Awards Malaysia 2011. 
  • Winner of the 5th Asia Pacific International Honesty Enterprise – Keris Award 2006
  • Winner of the Golden Bull Award 2003 ~ Malaysia’s 100 Outstanding SMEs


Funding Objectives

Minimum Targeted Fundraising Amount    : RM    300,000

Maximum Targeted Fundraising Amount   : RM 3,000,000

Use of proceeds based on RM300,000 fundraised:

Item

Percentage (%)

Inventory

60.00

Development of the Global Network Shopping Flow & Logistic Hub

20.00

Marketing

20.00

Total

100.00



Use of proceeds based on RM3,000,000 fundraised:

Item

Percentage (%)

Factory Outlet Expansion

50.00

Development of the Global Network Shopping Flow & Logistic Hub

10.00

Inventory

23.33

Marketing

16.67

Total

100.00



Share Offering

Star Electronics Sales & Services Sdn. Bhd. offers Redeemable Convertible Preference Shares (“RCPS”) to all the potential investors through CrowdPlus.asia platform. The RCPS offer interest at the rate of 10% per annum on the Subscription Price for 3 years.


Management Team

Hon Quek Fooi (CEO)

Mr Hon graduated with a Master’s in Business Administration in Management from United States and Masters of Business Supply Chain Management from Victoria University, Switzerland. In 2014, he founded the ASEAN Retail-Chains Franchise Federation (ARFF) Northern Region Malaysia chapter and in 2006 he founded the Malaysia Entrepreneurs’ Development Association (Persatuan Usahawan Maju Malaysia, PUMM) Northern Malaysia chapter.

Elaine Hon Cin Yee (COO)

Elaine graduated with a Bachelor of Commerce majoring in Accounting and Finance from Deakin University. Currently she is the COO and Finance Controller for Star Electronics Sales & Services Sdn Bhd. Previously she has worked at Citigroup as Transaction Services Analyst Compliance Officer in Business Control (APAC).

Khong Seok Cheng (CFO)

Khong completed her Diploma of Business Studies from Tunku Abdul Rahman College and she is an ACCA finalist from United Kingdom. Currently she is the CFO at Star Electronics Sales & Services Sdn Bhd. Previously she has worked in Teco Industry (M) Sdn Bhd and Formula Electronics Sdn Bhd.

Chris Daniel Wong(Corporate Service Director)

Chris is currently the lead adviser for several companies embarking on IPO listing in Bursa Malaysia and Australia Stock Exchange. He graduated with a Bachelor of Arts in Business Administration from Ottawa University, Kansas USA and is a certified e-Technologies from the University of California Berkeley. He completed his certificate of Private Equity Fundamentals from the Hong Kong Venture Capital and Private Equity Association (HKVCA) and is a member of HKVCA. He is trained in Leading with Finance and Finance Accounting by Harvard Business School.

 



The Board

Current DirectorPosition Held (Present)
Hon Quek FooiExecutive Director


Shareholding Structure


Current Shareholders

Shareholding Structure

(Present)

Shareholding Structure

(Assuming Maximum Amount Raised)

Hon Quek Fooi

88.24%

82.73%
Chai Mary4.14%3.88%
Hon Meei Nha1.32%1.24%
Khoo Tee Kiang0.21%0.19%
Azman Bin Abdul Aziz2.15%2.01%
Chew Su Lin3.92%3.68%
SEC O2O Sdn Bhd0.03%0.03%
Crowd Investors-6.25%
Total100%100%

Notes:

        

  • Chai Mary is the mother of Hon Quek Fooi.
  • Hon Meei Nha is the sister of Hon Quek Fooi


Corporate Information at Glance 

Name of company       : Star Electronics Sales & Services Sdn Bhd

Registration number    : 447016-U

Date of incorporate      : 17-9-1997

Registered address     : Suite 18.05, MWE Plaza, No. 8, Lebuh Farquhar, 10200 Georgetown Pulau Pinang

Business address        : 99A, Solok Bayan Lepas, Kawasan Perindustrian Bayan Lepas, 11900 Penang

Company Secretary     : Thum Sook Fun (License No. MIA24701): Low Seow Wei (License No.           

                                         MAICSA7053500)

Auditor                          : Morison Anuarul Azizan Chew

Website URL                : https://www.sec.com.my/


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