According to Malacca Securities Research, Big Caring Group is positioned as the clear leader in Malaysian retail pharmacy, and the research house projects PATMI to grow at a 29.3% CAGR, reaching RM281.3m in FY27, RM350.0m in FY28 and RM413.8m in FY29.
What Big Caring Group Does
BCG operates 668 outlets under six brands, led by BIG Pharmacy and CARiNG Pharmacy, and is the only chain present in all 13 states and three Federal Territories. The company held a 24.2% share of the retail pharmacy market by revenue in 2025, against 5.4% for the next player.
Retail accounted for 92.9% of FY26 revenue. The rest comes from the others segment, which includes Yanling for manufacturing and Medispec for import and distribution, lifting its gross margin to 53.2% against 28.4% for retail.
The research house noted that BCG employs 715 licensed pharmacists, more than double the next-largest chain. Its footprint also sits in a market where organised chains hold only 51.9% of outlets, compared with 84.2% in Singapore.
Key Financial Numbers in the Malacca Securities Model
BCG has grown from 179 outlets in July 2022 to 668, opening 235 outlets organically and acquiring 290, net of 36 closures. Malacca Securities projects 45 new outlets a year and 8.0% same-store sales growth, both at the midpoint of management’s targets.
Total income margin widened to 33.7% in FY26 from 26.4% in FY24, as better supplier rebate terms and payable days rising to 80 from 65 fed through. EBITDA margin improved by 4.7 percentage points to 13.7% over the same period.
Advertising and promotion income rose to RM123.9m in FY26 from RM58.8m in FY24. Own-brand products made up 12.4% of FY26 retail revenue, with more than 1,000 SKUs in range.
The Valuation Basis Behind the RM1.40 Fair Value
The research house derives its fair value from a target P/E of 32.7x, which it describes as in line with the peer average forward P/E. That multiple is applied to mid-FY28 EPS of 4.28 sen.
Malacca Securities Research links the valuation to the roll-out pipeline, with 12 outlets opened and 10 iCare outlets acquired since July 2026. It also notes that 190 of 219 net new outlets opened over FY23 to FY26 have reached EBITDA breakeven.
Risks Flagged and Questions to Check
The forecast leans heavily on sustained expansion, with the research house assuming 45 openings a year at a capex of RM280,000 to RM420,000 per outlet. A slower roll-out or weaker same-store growth would weigh directly on the PATMI path.
Part of the margin gain relies on supplier credit, since payable days rose to 80 from 65. Readers should review the full risk section in the report, which covers the assumptions behind these projections in more detail.
What This Means for Retail Investors
The Malacca Securities figures show a company whose profit forecast depends on store growth, purchasing scale and newer income streams such as Medispec and MyHA prescriptions, which rose to c.125,000 a month in FY26. For investors weighing the IPO price of RM1.08 against the research house’s RM1.40 fair value, the gap rests on whether those assumptions hold.
The full report is available from M+ Online at mplusonline.com. The views above are those of Malacca Securities Research and are not recommendations from this publication.
Key Takeaways
- Malacca Securities sets a fair value of RM1.40 on BCG, 29.6% above the RM1.08 IPO price.
- The research house projects PATMI of RM281.3m, RM350.0m and RM413.8m for FY27 to FY29.
- BCG holds a 24.2% retail pharmacy revenue share and 660 licensed outlets as at 30 September 2026.
- EBITDA margin rose to 13.7% in FY26, driven by procurement scale and rebate terms.
- The valuation depends on 45 new outlets a year and a target P/E of 32.7x.
Frequently Asked Questions
What fair value has Malacca Securities set for Big Caring Group?
Malacca Securities has assigned Big Caring Group a fair value of RM1.40 per share. That implies 29.6% upside from the IPO price of RM1.08, based on a target P/E of 32.7x applied to mid-FY28 EPS of 4.28 sen.
How many outlets does Big Caring Group operate?
Big Caring Group operates 668 outlets under six brands, including BIG Pharmacy and CARiNG Pharmacy. According to Malacca Securities Research, 660 of those outlets were licensed pharmacies as at 30 September 2026.
What PATMI does the research house project for FY28?
M+ Online’s research team projects PATMI of RM350.0m in FY28, following RM281.3m in FY27. The forecast assumes a 29.3% CAGR over the period and reaches RM413.8m in FY29.
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Source & Attribution
This article summarises a research report published by Malacca Securities Sdn Bhd (M+ Online) on 04 November 2026. All ratings, target prices and forecasts belong to Malacca Securities Research, not to the author of this blog.
Read the original report: M+ Online Research Report | View full PDF
Disclaimer: This article is for informational and educational purposes only and does not constitute financial advice or a recommendation to buy or sell any security. Ratings and target prices cited are those of Malacca Securities Research and are subject to change. Always do your own research before making investment decisions.
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