Latest news with #MRDIY
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.
New Straits Times
05-05-2025
- Business
- New Straits Times
MR DIY's Q1 earnings jumps to RM174mil, revenue soars to RM1.26bil
KUALA LUMPUR: MR DIY Group (M) Bhd's net profit jumped 20 per cent in the first quarter of financial year 2025 (1QFY25), driven by higher gross profit. The net profit rose to RM174 million for the period from RM144.9 million a year ago, according to a bourse filing. This was driven by improved gross profit margin resulting from lower average inventory costs arising from the economies of scale from global procurement and the strengthening of the ringgit. MR DIY said its revenue grew 10 per cent to RM1.26 billion from RM1.1 billion, underpinned by its ongoing expansion with the addition of 173 new stores, increasing the total store count from 1,298 to 1,471. The expansion translated into higher footfall, with total transactions climbing 9.1 per cent to 48.2 million and a 0.9 per cent increase in average basket size. The earlier timing of Hari Raya festivities this year – falling in March instead of April – also contributed to stronger seasonal sales. MR DIY declared an interim single tier dividend of 1.4 sen a share, totaling RM132.6 million, which will be paid on July 8. Chief executive officer Adrian Ong, in a statement, said the group plans to open 190 new stores across its core and sub-brands this year. These will include innovative retail concepts and expanded product offerings. "Despite market volatility driven by geopolitical tensions and tariff disputes, our financial position remains solid. At this time, we do not expect the current US tariffs to impact us. "We will continue to stay agile and responsive to evolving market conditions and customer needs, all while championing value," he added. He noted that the throughput at MR DIY's automated warehouse has increased significantly since its launch in August 2024.
Yahoo
20-04-2025
- Business
- Yahoo
A Look At The Fair Value Of Mr D.I.Y. Group (M) Berhad (KLSE:MRDIY)
Using the 2 Stage Free Cash Flow to Equity, Mr D.I.Y. Group (M) Berhad fair value estimate is RM1.42 Mr D.I.Y. Group (M) Berhad's RM1.66 share price indicates it is trading at similar levels as its fair value estimate Analyst price target for MRDIY is RM1.86, which is 32% above our fair value estimate How far off is Mr D.I.Y. Group (M) Berhad (KLSE:MRDIY) from its intrinsic value? Using the most recent financial data, we'll take a look at whether the stock is fairly priced by estimating the company's future cash flows and discounting them to their present value. The Discounted Cash Flow (DCF) model is the tool we will apply to do this. Don't get put off by the jargon, the math behind it is actually quite straightforward. We would caution that there are many ways of valuing a company and, like the DCF, each technique has advantages and disadvantages in certain scenarios. If you still have some burning questions about this type of valuation, take a look at the Simply Wall St analysis model. Our free stock report includes 1 warning sign investors should be aware of before investing in Mr D.I.Y. Group (M) Berhad. Read for free now. We are going to use a two-stage DCF model, which, as the name states, takes into account two stages of growth. The first stage is generally a higher growth period which levels off heading towards the terminal value, captured in the second 'steady growth' period. To start off with, we need to estimate the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. Generally we assume that a dollar today is more valuable than a dollar in the future, so we need to discount the sum of these future cash flows to arrive at a present value estimate: 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Levered FCF (MYR, Millions) RM747.1m RM817.5m RM899.0m RM956.9m RM1.01b RM1.06b RM1.11b RM1.16b RM1.20b RM1.25b Growth Rate Estimate Source Analyst x6 Analyst x6 Analyst x5 Est @ 6.44% Est @ 5.59% Est @ 4.99% Est @ 4.57% Est @ 4.28% Est @ 4.08% Est @ 3.93% Present Value (MYR, Millions) Discounted @ 10% RM678 RM673 RM672 RM649 RM622 RM593 RM563 RM532 RM503 RM474 ("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = RM6.0b After calculating the present value of future cash flows in the initial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 5-year average of the 10-year government bond yield of 3.6%. We discount the terminal cash flows to today's value at a cost of equity of 10%. Terminal Value (TV)= FCF2034 × (1 + g) ÷ (r – g) = RM1.3b× (1 + 3.6%) ÷ (10%– 3.6%) = RM20b Present Value of Terminal Value (PVTV)= TV / (1 + r)10= RM20b÷ ( 1 + 10%)10= RM7.5b The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is RM13b. The last step is to then divide the equity value by the number of shares outstanding. Relative to the current share price of RM1.7, the company appears around fair value at the time of writing. The assumptions in any calculation have a big impact on the valuation, so it is better to view this as a rough estimate, not precise down to the last cent. Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows. Part of investing is coming up with your own evaluation of a company's future performance, so try the calculation yourself and check your own assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Mr D.I.Y. Group (M) Berhad as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 10%, which is based on a levered beta of 1.111. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. See our latest analysis for Mr D.I.Y. Group (M) Berhad Strength Earnings growth over the past year exceeded the industry. Debt is not viewed as a risk. Dividends are covered by earnings and cash flows. Weakness Earnings growth over the past year is below its 5-year average. Dividend is low compared to the top 25% of dividend payers in the Specialty Retail market. Expensive based on P/E ratio and estimated fair value. Opportunity Annual earnings are forecast to grow faster than the Malaysian market. Threat Revenue is forecast to grow slower than 20% per year. Valuation is only one side of the coin in terms of building your investment thesis, and it ideally won't be the sole piece of analysis you scrutinize for a company. DCF models are not the be-all and end-all of investment valuation. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" For example, changes in the company's cost of equity or the risk free rate can significantly impact the valuation. For Mr D.I.Y. Group (M) Berhad, we've put together three essential factors you should explore: Risks: Every company has them, and we've spotted 1 warning sign for Mr D.I.Y. Group (M) Berhad you should know about. Future Earnings: How does MRDIY's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart. Other High Quality Alternatives: Do you like a good all-rounder? Explore our interactive list of high quality stocks to get an idea of what else is out there you may be missing! PS. The Simply Wall St app conducts a discounted cash flow valuation for every stock on the KLSE every day. If you want to find the calculation for other stocks just search here. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
