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%.

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 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.

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

The Board

Corporate Information at Glance 

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