Hextar Retail Partners with Hong Kong Noodle Chain Tam Jai for Malaysian Expansion

Hextar Retail Bhd (KL:HEXRTL) has announced a strategic partnership with Hong Kong fast-casual dining group Tam Jai International Co Ltd (TJI) to bring a popular noodle chain to Malaysia. This collaboration marks a significant step forward in Hextar Retail's diversification strategy into the retail sector, and it is poised to shake up the Malaysian food scene.

Hextar Retail, formerly known as Classic Scenic Bhd, has been actively expanding its retail business since December 2023. The company's recent financial performance reflects its commitment to growth. In the second quarter ended June 30, 2024 (2QFY2024), Hextar Retail posted a net profit of RM499,000 on a revenue of RM14.47 million. The company currently holds net cash of RM23.63 million, providing ample financial resources for future expansion.

Tam Jai's Arrival in Malaysia

Under the terms of the partnership, Hextar Retail will have exclusive rights to develop, operate, and manage the 'Tam Jai' brand across Malaysia. The first Tam Jai outlet is expected to open in Kuala Lumpur in the first quarter of 2025.

Tam Jai's Unique Offerings

Tam Jai is renowned for its authentic Hong Kong-style noodles, offering a wide range of flavors and variations. The brand's commitment to quality and innovation is a major draw for customers. TJI's chairman, executive director, and chief executive officer, Daren Lau, highlighted Hextar Retail's understanding of the Malaysian market and its expertise in retail management as key factors in choosing them as a partner.

Hextar Retail's Strategic Vision

Eric Vo Nghia Huu, managing director of Hextar Retail, expressed his excitement about the partnership. He stated that the collaboration aligns perfectly with Hextar Retail's strategic vision of delivering exceptional value to its customers and solidifying its position in the Malaysian market.

A Shared Vision for Growth

Datuk Eddie Ong, a major shareholder of Hextar Retail, echoed Vo's sentiment, emphasizing the alignment between TJI's reputation for quality and innovation and Hextar Retail's strategic goals. He sees immense potential in introducing Tam Jai's unique culinary offerings to Malaysian consumers and believes this partnership will strengthen the group's market position. Ong owns a direct stake of 10.14% and an indirect 17.48% in Hextar Retail.

A Promising Future for Hextar Retail

The partnership with Tam Jai is a strategic move for Hextar Retail that promises to drive growth and expansion. The company's expertise in retail management combined with Tam Jai's established brand and culinary expertise creates a powerful synergy. As the first Tam Jai outlet prepares to open its doors in Kuala Lumpur, it will be interesting to see how Malaysian consumers respond to this exciting new addition to the food scene.

A Noodle Revolution in the Making

With a strong financial foundation and a strategic vision for growth, Hextar Retail is well-positioned to capitalize on the opportunities presented by the Tam Jai partnership. This venture has the potential to transform the Malaysian food landscape, introducing a fresh and exciting dining experience to local consumers. This alliance could be a catalyst for further expansion into other Southeast Asian markets in the future.

At the close of trading on Thursday, shares in Hextar Retail closed 1.5 sen or 2.9% lower at 49.5 sen, resulting in a market capitalization of RM244.13 million. This strategic partnership with Tam Jai has the potential to drive growth and shareholder value for Hextar Retail in the long term.