Mr DIY's outlook bright on expansion, warehouse savings
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.
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