Latest news with #MRDIYGroup(M)Bhd
The Star
2 days ago
- Business
- The Star
Bargains drive demand as margins face pressure
PETALING JAYA: Growth numbers for the consumer sector could moderate in the second half of 2025, especially for retailers, following a strong start to the year with the Hari Raya celebrations. This was despite the sector providing a defensive shelter amidst the uncertain global macroeconomic outlook, thanks to the domestic-centric earnings base and resilient consumption on stable employment and continuous financial support. In a report, RHB Research said the prospects of subdued consumer sentiment and rising operating expenditure (opex) will cap earnings growth. 'Therefore, we strategically advocate for the liquid large-cap retailers with better earnings visibility, backed by superior operational scale and efficiency. We maintain a 'neutral' call,' RHB Research said. It added that moving past the immediate term, it foresees consumer sentiment staying soft, impacted by elevated inflationary pressures as well as uncertain economic and income outlooks stemming from global trade tensions. 'As such, inflation-weary consumers will continue to spend selectively, prioritising essential purchases and bargain-hunting for value, hence capping discretionary spending,' it noted. RHB Research said it prefers defensive and liquid large-cap names like MR DIY Group (M) Bhd and 99 Speed Mart Retail Holdings Bhd for their ability to capture consumer spending and reasonable valuations versus consumer staple peers. The research house also likes Farm Fresh Bhd for its ambitious drive to penetrate more segments in the dairy industry and favours Guan Chong Bhd for its stellar earnings outlook, supported by forward sales at elevated combined ratios and normalised production volumes. 'We also highlight Focus Point Holdings Bhd 's undemanding valuation, notwithstanding the robust optical sales momentum on the back of the rising myopic population and proactive marketing drive.' On the sales and service (SST) tax, RHB Research said it does not reckon companies will be able to pass on the additional costs considering the demand elasticity and anti-profiteering regulation in place. With that, it opined that margin trends could turn subdued, particularly for retailers like Aeon Co (M) Bhd, Padini Holdings Bhd , Mynews Holdings Bhd and Focus Point, unless there are significant efficiency gains to offset the impact. 'On the other hand, things are turning more favourable for food manufacturers like Nestle Malaysia Bhd , Farm Fresh and Power Root Bhd as easing commodity prices and strengthening of the ringgit should translate to a promising margin outlook.' Risks include a major slowdown in economic growth and a sharp surge of commodity prices. 'We believe they can better mitigate opex inflation owing to their dominant market share, massive scale of operations, and established brand equity,' it said.
The Star
07-05-2025
- Business
- The Star
Stock trading opportunities amid US dollar weakness
UOB KayHian Research recommended a tactical trading stance focusing on value- driven opportunities. PETALING JAYA: The appreciation of the ringgit versus the US dollar has brought about trading opportunities in Malaysian equities focusing on value amid expectations of de-dollarisation and a broader reallocation of capital toward emerging market currencies. UOB KayHian Research recommended a tactical trading stance focusing on value- driven opportunities amid a moderate upside for Malaysian equities. 'Key beneficiaries include importers and companies with high US dollar debt, while exporters may face margin pressure,' it said. The research house advocated exposure in value stocks backed by sound fundamentals, considering the fluid trading environment as the ringgit's strength represents a significant macro tailwind for corporate earnings, with reallocations towards domestic demand and import-reliant sectors from those reliant on US dollar revenue. Among the potential winners are retail and consumer discretionary stocks like MR DIY Group (M) Bhd and Fraser & Neave Holdings Bhd . Automotive stocks (Bermaz Auto Bhd , Sime Darby Bhd ), aviation (Capital A Bhd ), plantation (Kuala Lumpur Kepong Bhd and SD Guthrie Bhd), healthcare (Duopharma Biotech Bhd ) and others like Axiata Group Bhd , Tenaga Nasional Bhd , Genting Bhd and Genting Malaysia Bhd are also potential winners. 'Most of the key beneficiaries are expected to gain from lower import costs, alongside lower debt servicing cost, given the meaningful US dollar debt exposure. 'That said, the margin improvement in auto sector would still be offset by overall soft demand and market share loss to Chinese competitors,' it noted. Stocks at the losing end of the weaker greenback include exporters from the technology and electronic manufacturing services sectors, commodity-linked stocks such as Press Metal Aluminium Holdings Bhd and OMH Holdings Ltd, as well as glove makers. It said during the last ringgit appreciation cycle in the third quarter of 2024 (3Q24), when the ringgit rose to a peak of RM4.09/US dollar from RM4.66/US dollar between end-July and end-September before rebounding to RM4.49/US dollar by mid-November, retail and consumer stocks emerged as direct beneficiaries during the 3Q24 results reporting season.
New Straits Times
06-05-2025
- Business
- New Straits Times
Mr DIY's outlook bright on expansion, warehouse savings
KUALA LUMPUR: MR DIY Group (M) Bhd is poised to deliver strong financial performance in financial year 2025(FY25), with its core net profit projected to rise 8.1 per cent year-on-year, according to CIMB Securities Sdn Bhd. The anticipated growth is driven by the groups's aggressive retail expansion, including a planned net addition of 180 new stores in FY25—a 12.5 per cent increase from FY24. The home improvement retailer is also set to benefit from reduced start-up costs associated with its newly commissioned automated warehouse, which began operations in the second quarter of FY25. MR DIY also capitalised on greater operating leverage, leveraging its larger store footprint. CIMB Securities said the group's first-quarter core net profit of RM176 million, a 12.2 per cent increase year-on-year, was in line with both its own and Bloomberg's full-year estimates. "We believe that the strong quarterly performance in Q1 was expected, boosted by festive-driven demand due to the earlier timing of Hari Raya in 202," it said. The firm noted that the impact of US tariffs on global trade as neutral to slightly positive for the group. While such measures may weigh on both global and domestic economic sentiment — potentially dampening consumer spending — MR DIY anticipates a net margin benefit from more favourable supplier terms amid softer global demand, alongside advantageous foreign exchange movements. CIMB Securities maintained its FY25–27F earnings per share forecasts, reaffirmed its 'buy' rating and kept its target price unchanged at RM2.15. "We continue to like MR DIY for its robust earnings prospects, leading position as Malaysia's largest home improvement retailer and strong balance sheet," the firm added.
The Star
06-05-2025
- Business
- The Star
MR DIY posts record high earnings in first quarter
PETALING JAYA: MR DIY Group (M) Bhd does not expect US reciprocal tariffs to impact its performance even as it reports record financial performance. Despite the ongoing market volatility due to geopolitical tensions and tariff disputes, the group said its financial position remains solid. The group said it has declared a dividend of RM132.6mil for the first quarter of financial year 2025 (FY25), representing a payout ratio of 76.1% of net profits and a 40% year-on-year (y-o-y) rise. This reflects the group's confidence in its prospects, it said. Malaysia's largest home improvement retailer reported a 20.2% y-o-y increase in net profit to RM174.1mil for the first quarter ended March 31, 2025, which is a record high for the group. Revenue for the quarter grew 10% y-o-y to RM1.26bil which was driven by like-for-like store sales growth and new store openings during the period. 'We are very encouraged by the strong start to FY25, especially in the face of ongoing uncertainties. Our operational improvements are bearing fruit, with meaningful progress reflected in key financial indicators. 'Notably, throughput at our automated warehouse has increased significantly since its launch in August 2024,' chief executive officer Adrian Ong said in a statement. 'While there is still work to be done, we are confident that we are on the right path – driving operational efficiency and delivering long-term sustainable value to our stakeholders,' Ong added. Gross profit margin improved by two percentage points y-o-y to 47.8% on lower average inventory costs arising from the economies of scale from its global procurement and the strengthening of the ringgit, it said. As a result, it said gross profit rose 14.9% y-o-y to RM601.2mil. Looking ahead, Ong said MR DIY is on track to strategically launch 190 new stores across its core and sub-brands in 2025.
The Star
05-05-2025
- Business
- The Star
Mr DIY sees no impact from US reciprocal tariffs
MR DIY Group (M) Bhd chief executive officer Adrian Ong. PETALING JAYA: Mr D.I.Y. Group (M) Bhd (Mr DIY) does not expect US reciprocal tariffs to impact its performance even as it reported record financial performance. Despite the ongoing market volatility due to geopolitical tensions and tariff disputes, the group said its financial position remains solid. The group said it has declared a dividend of RM132.6mil for the first quarter of its financial year 2025 (FY25), representing a payout ratio of 76.1% of net profits and a 40% year-on-year (y-o-y) rise. This reflects the group's confidence in its prospects, it said. Malaysia's largest home improvement retailer reported a 20.2% y-o-y increase in net profits to RM174.1mil for the first quarter ended Mar 31, 2025 which is a record high for the group. Revenue for the quarter grew 10% y-o-y to RM1.26bil which was driven by like-for-like store sales growth and new store openings during the quarter. 'We are very encouraged by the strong start to FY25, especially in the face of ongoing uncertainties. Our operational improvements are bearing fruit, with meaningful progress reflected in key financial indicators. Notably, throughput at our automated warehouse has increased significantly since its launch in August 2024," its chief executive officer Adrian Ong said in a statement. "While there is still work to be done, we are confident that we are on the right path – driving operational efficiency and delivering long-term sustainable value to our stakeholders," Ong added. Gross profit margin improved by two percentage points y-o-y to 47.8% on lower average inventory costs arising from the economies of scale from our global procurement and the strengthening of the ringgit currency, it said. As a result, it said gross profit rose 14.9% y-o-y to RM601.2mil. Looking ahead, Ong said Mr DIY is on track to strategically launch 190 new stores across its core and sub-brands in 2025. "These will include innovative retail concepts and expanded product offerings, reinforcing the group's market leadership and its position as the value retailer of choice for all Malaysians," it said. "We will continue to stay agile and responsive to evolving market conditions and customer needs, all while championing value. Our first quarter results reaffirm our resilience,' Ong said.
