Latest news with #MRDIYGroup(M)Bhd
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.
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.
