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.
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
- 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).
of information: Asia Equity Research
Essentially, we provide consumers with a one-stop shop for electrical appliances.
SEC owns the largest 3C (Consumer, Communication and Computing) chains store in Northern area of Malaysia with a market size of 80%.
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.
The company has 15 retail stores. 11 are company-owned stores and 4 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 Fortune Court
3) SEC Jelutong
4) SEC Tanjong Tokong
5) SEC Sungai Dua
6) SEC Burmah Road
7) SEC Sungai Ara
8) SEC Farlim
9) SEC Raja Uda
10) SEC Chai Leng Park
11) SEC Bukit Mertajam
12) SEC Alor Setar
13) SEC Kulim
14) SEC Jitra
15) SEC Lagenda Heights
of revenue: Retail sales of home appliances, after-sales services, and other
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.
Sales traction: Consistent revenue at RM60 million 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
Minimum Targeted Fundraising Amount: RM 300,000
Maximum Targeted Fundraising Amount: RM 3,000,000
Use of proceeds:
|Factory Outlet Expansion||50|
|Development of the Global Network Shopping Flow & Logistic Hub||10|
However, the management is open to raise more than the above stated amount for a rapid expansion. The Company also intends to raise additional RM 17 million after this equity crowdfunding campaign, and plans for an initial public offering by 2020.
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.
|Joseph Hon (CEO)|
Joseph 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 ServiceDirector)
|Chris is currently the lead advisor 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 University of California Berkeley. He completed his certificate of Private Equity Fundamentals from Hong Kong Venture Capital and Private Equity Association (HKVCA) and is a member of HKVCA. He is trained in Leading with Finance by Harvard Business School. Chris works for Asia Equity Research (“AER”). AER is a lead advisor for SEC on fundraising and IPO on the Australian Securities Exchange (ASX).|
Tan Kar Weng
|Tan has a wealth of experience in Professional Management Information Systems (MIS) and IT technical support. He is good in project planning, development and implementation of hardware, software applications, programming and systems network.|
Ong Tee Chin
(IPO Lead Advisor)
|Ong holds a Bachelor of Pharmacy, majoring in Pharmaceutical Science from University Science Malaysia and a Bachelor of Laws from University of London. A Fellow Member of Association of Chartered Certified Accountants (“ACCA”). Member of Malaysian Institute of Accountants (“MIA”), Associate Member of Chartered Institute of Management Accountants (“CIMA”), a graduate member of Malaysian Institute of Certified Public Accountants (“MICPA”), is a CFA® charterholder and a certified Financial Risk Manager (“FRM”) by the Global Association of Risk Professionals. He is also a capital market representative license from Securities Commission Malaysia required for conducting advisory work on corporate finance.|
|Current Directors||Position Held (Present)|
|Hon Quek Fooi||Executive Director|
(Assuming Maximum Amount Raised)
|Hon Quek Fooi|
|Hon Meei Nha||1.32%||1.24%|
|Khoo Tee Kiang||0.21%||0.19%|
|Azman Bin Abdul Aziz||2.15%||2.01%|
|Chew Su Lin||3.92%||3.68%|
|SEC O2O Sdn Bhd||0.03%||0.03%|
- 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/