KUALA LUMPUR, Sept 8 (Bernama) -- Bursa Malaysia closed almost flat on Tuesday as buying interest rotated away from index heavyweights towards smaller-cap construction stocks, with sentiment affected by geopolitical uncertainty, said an analyst. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 0.39 of a point to 1,714.40 from Monday’s close of 1,714.79. The benchmark index opened 1.65 points lower at 1,713.14 and moved between 1,710.44 and 1,714.50 throughout the trading session. The broader market was almost evenly balanced, with decliners leading gainers 548 to 546, while 598 counters were unchanged, 1,107 were untraded and 25 were suspended. Turnover expanded to 4.13 billion units valued at RM3.14 billion from 3.60 billion units valued at RM2.45 billion on Monday.
What Does Semico Do?
- Toys & Collectibles Distributor:Distributes toys from 53 brands, including Pop Mart (famous for Labubu plushies), to:
Toy stores
Hobby shops
Convenience stores
Arcade operators (for use as game prizes)
Arcade & Amusement Machines Business:
Supplies and rents machines to family entertainment centres
Operates one centre at The Mines
Business model includes revenue-sharing & machine rental
Financial Snapshot (2024)
| Metric | Value |
|---|---|
| Revenue | RM22.1 million |
| Net Profit | RM6.7 million |
| Toys & Collectibles: 55% of revenue | |
| Arcade & Amusement: 45% |
IPO Structure & Use of Proceeds
Public Issue: 92.67M new shares → funds for:
Expanding toy inventory
Purchasing 188 new arcade machines
Replacing 55 older machines (claw, racing games, etc.)
Offer for Sale: 18M existing shares → proceeds to CEO Tai Lee Chuen and Ang Sew Fong (his wife & Executive Director)
Current machine base: 603 units (100+ over 5 years old & fully depreciated)
Strategic Growth Focus
Tap into rising demand for collectables and themed merchandise
Expand market reach via more machines & customer acquisition
Leverage existing network of arcade operators and retailers
Key Points for Investors
✅ Strong niche brand exposure (Pop Mart, Labubu)
✅ Dual business model (toys + arcade machines) with diversification
✅ Profitable track record (30% net margin)
✅ Growth backed by expanding customer base & demand for family entertainment
Risk Considerations:
Heavily reliant on consumer trend cycles
Capital-intensive arcade operations
High management concentration (founder-led, family-run)
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