Toy maker Milolo to open five outlets in Peninsular Malaysia in two years

KUALA LUMPUR (May 4): Home-grown designer toy company Milolo Bhd aims to open five retail outlets in Peninsular Malaysia over the next two years.

Managing director Datuk Millan Lee said the domestic retail expansion will involve well-established shopping malls, namely Ombak KLCC, Sunway Velocity and Seremban Gateway 2 in Negeri Sembilan, and the company also aims to expand its retail presence to Penang and the East Coast.

On expansion into Sabah or Sarawak, he said the company still needs to work out on logistics as blind boxes are fast-moving items, any delays in transportation could pose challenges, particularly in managing returns.

"For overseas expansion, we are targeting within two to three years. So, first we will target Thailand, Indonesia, China and Singapore, but it will depend on the countries’ regulations and culture," he said after the company's listing ceremony here on Monday.

Milolo made its debut on the LEAP Market of Bursa Malaysia at 12 sen for a premium of two sen over its initial public offering price of 10 sen, with 2,800 shares traded.

He added that for the regional expansion plan, Milolo would prefer to adopt a direct retail model and manage its own operations where feasible.

On the company’s prospects, he noted that the strong growth in net profit and margins over the past financial year was driven by the popularity of key products, particularly Labubu and Twinkle Twinkle, which saw high demand alongside price increases.

Looking ahead, he expects the company to sustain its growth trajectory over the next few years, supported by a growing fan base and an increasing number of collectors.

On the impact of global headwinds on the business, he said the company only expected a minor impact, mainly on the shipping side, as the conflict has caused some delays, but not significantly, as it does not ship in containers.

He said the company ships items every day instead of waiting to fill a container, ensuring continuous deliveries as a result. Any delays have only been minimal, lasting just a few days and not significant and costs have also eased slightly due to bulk shipments and better timing, he added.

Milolo also aims to list on the higher-tier ACE Market of Bursa Malaysia within the next two to three years.

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